Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-08-31
w. n. Holcomb Charged With
Using Mails to Defraud.
ARRESTED AND ARRAIGNED
Promoter Of Corporation Known a.
Cooperative United Exchange.
OPENS OFFICE IN WASHINGTON
Information Leading to His Appre-
hension Furnished by Franklin
Bennett OF This City.

CHICAGO, August 31.-william H. Hol-
comb, vice president and general counsel
for the Cooperative United Exchange. Q
corporation capitalized flor $2n,000.000 In
Arizona, was arrested here yesterday by
deputy United States marshais charged
with using the mails to defraud.' Hol-
comb was arraigned before Commissioners
Mark A. Foote and placed under bonds Of
5000, pending a hearing September o.
The names Of the California Sanitarium
and Farm Company and the Metropolitan
Deposit and TRUST Company Of Phoenix.
Ariz., are mentioned in the case. The
Cooperative United Exchange has onices
in Washington, Chicago and San Fran
cisco.
Evidence Obtained in Washington.
Nearly all Of the evidence gathered
by the agents OF the government
against the oficers Of the United Ex-
change was secured in this city from
Franklin Bennett. whose services. II is
said. were attempted to be secured by
william H. Holcomb to boost the
sales OF Exchange" stock and bonds in
this city. Mr.. Holcomb was In Wash
ington as recently as last week. and.
II is said. he then believed he was
ment. because . description Of his
movements in Washington and through
the eastern section OF the country
Saturday. Sunday and Monday. accord-
Ing TO MT & Bennssts story .ooay; Hs:vnr- IN
ing to shake OF the trailers. Hol-
comb made hurried trips to Fort Myer.
to Arlington and. other nearby points.
and also went as far as Atlantic City.
spectors clung closely, to him..
.Holoomb or His Guard.
1t is understood to have been their par
ticular desire to run .Holcomb to earth
In Chicago. where the warrant for his
arrest already had been issued. Leaving
Washington Monday afternoon At 3
O'Clock. Holcomb met coterie Of pseudo
Newspaper correspondents. whe arg said
to have represented themselves 10 eing
In pursuit Of another Holconb. govern
ment contractor who had gone wr0ng,
and In their company he traveller al
as he stepped from the train In that
A long statement covering All phases of
his connection with the United Ex-
Cn0nRe ana MS WOfk lOOAIHB 10 uu-
doing. was issued today by Franklin Ben
nett, a local stock and bond salesman.
who is understood to have turned over
all information In his possession to the
inspectors Of the Post Once Department.
Post ONCE Department Commended.
IT believe that in swooping down on. the
officiaIs of the United Exchange just in
time to save many persons from De-
coming -hopelessly entangled In one OF the
most atrocfous schemes ever perpetrated
on the public, the Post once Department
has done q most admirable thing" said
Mr.. Bennett
paper and received a letter from William
II. Holcomb to meet him at one OF the
leading hotels. He outlined one OF the
most gigantic propositions I have ever
heard OF. and. as he had written In
PRODUCTION to Commissioner Rudolph and
an account in the National Metropolitan
Bank, as well as loads Of genuine-look-
ing literature. took his proposition un-
der consideration.
photographs of the executive
offices Of the exchange. He also stated
the concern had a furniture factory OF
its own, ten big managers oflces. all
furnished alike, and a big business
the western states. pro-
and he agreed to 60 over 1t with me and
give me the details.
Promises Details by Mail.
Then about the 18th Of July I received
a late special delivery letter. saying that
he would give me the details by mail
from Chicago and that he regretted that
business demanded his presence there.
Shortly afterward l happened to look at
the picture Of the alleged executive office
with magnifyihg glass and found that
1t was the product Of trick photography.
subsequent Investigation. which
that the picture was one OF the city
ticket ofices OF the Southern Pacific rail-
road In Los Angeles. and that the name
United Exchange" had been deftiy
painted into H. Then received a reply
to my letter asking Holcomb. to state
the locations of the ten state offices. He
wrote back that he regretted to say that
while he had complete list of his man.
agerial ofices. he had lost 1t In a satchel
when going through the New York sub
way. then called on Chief Post Once
Inspector Sharp at the Washington ONCE
and asked him IL he could tell me any
thing about this concern. As is the Gus
tom of the. government secret service
men. ! was given no other information
than the fact that Inspector Sharp had |
been investigating the concern for q long |
time. / decided to say and do nothing |
but watch Developments In order not to |
interfere with the work OF the govern |
ment. -
New Phase Of Activities.
''The activities Of Hoicomb then took |
4 new phase. He came to Washington |
and called upon the department OF Jus
tice. the State Department and other |
high Offices. and obtained the seals Of
the United States on deeds showing that
q new concern had been added to the |
many already organized by virtually the
same men.
TT was. the International Land Com
pany. with Holcomb and Wiltshire as
directors. To these men. or rather TO
their corporation, some several millions /
,f dollars worth Of land In Lower Cali
,ornia had been decided by one Agoste |
[turbide, said to be grandson Of one Of /
he last emperors OF Mexico. This land |
3 In Lower California. The deeds were /
ater traced from Chicago to the Mexican /
embassy In Washington. for the great /
zeal OF Mexico. II noticed that the United l.
states departments stipulated expressly |,
N the papers that they were In no man.
aer responsible for the contents OF the
documents. IL
Projected Sale Of Rights.
In regard to the general scheme Of the
United Exchange I can only learn from
heir voluminous literature that they in |
ended to sell state rights for large sums
0 anybody at al. and would Eaarantee
Continued on Second PaGAl Il