The San Francisco call., 1910-11-24
LETTERS EXPOSE
FRAUDS OF BURRS
State Mineralogist Aubury Will
Send Evidence to Post
master General
Magazine Was Big Factor in
Drawing Victims Into
Swindlers' Net

State Mineralogist Lewis E. Aubury
will forward to Washington mass of
letters to be used as evidence against
Burr Brothers. promoters of oil and
mining stock, that Postmaster General
Hitchcock says represent a $40,000.0o0
swindle AS an indication of the ex-
tent of their operations, correspondence
from victimized investors in the canal
zone. Canada and all points in the
United States will be supplied Hitch
cock
The factor which made possible the
success of the Burr Brothers ventures
in stocks seems to have been their oil
publication Securities. This they pub
lished on an extensive scale and was
the means of winning the confidence
and opening the pockets of the in
vestors By this means the fears of
spectators were overcome. Assurances
of the reliability Of the companies
methods were given much publicity,
and. according TO one of the victims, a
map and prospectus of one oil holding
continued to be printed long after the
corporation itself went out of business.
The praises of Burr Brothers proper
ties were constantly sounded
INVESTORS SUSPICIOUS
During the last four months Aubury
had flooded the country with circulars
asking for information concerning the
private business practices of Burr
Brothers. The answers show that many
of the investors had reached the con-
! clusion that they had been duped, while
| others had their suspicious aroused and
were anxious for information as to the
| standing of the companies in which
they hold stock.
The Peoples Associated, New York
fCoalinga company, the Coalingp Aladdin
and lie Consolidated oil companies are
the corporations regarding whose sta
| bility the greatest doubt and misgivine
seem TO have been felt.
The letters carry doubts and sus
picions as to the legitimacy of the oper'
/ ations, threats of retributfve measures
! 6enunciations of the practices and, II
several instances, a surprising philo-
sophical resignation to losses. Womer
! form a large percentage of the invest
/ ors swindled.
William Franzen of Okouchee. wis.
wrote to Mr. Crosby of Pasadena ;
commiserating note as follows:
I can fully appreciate your feeling
! in. regard to the loss you sustained
| am loser TO the extent Of $1,000, anC
can hardly console myself However
we have but one life to live, and W.
must make the best of it,
r. A. Johnson, a San Diego police
man. was more to the point. He said:
'T paid $427 for Aladdin stock-4'
cents per share. I am now thorough.
| convinced that I was buncoed by TIL
Burr Brothers, and if there is any wa!
Of prosecuting them I hope 1t will b.
! found"
james mcdonnell of New Yorl
wrote:
II understand that the Peoples Asso
eiated oil company has gone out o.
business I got this information out
side OF Burr Brothers. I have invested
I heavily, and IT seems TO me Burr Broth
ers have been dishonest. Their maga
zine. Securities. continues to print mapl
of the Peoples holdings, nevertheless.
The British Columbia Mining anC
/ Engineering Record writes that Bur
Brothers were interested in floating
number of mining companies in Canada
but were frustrated by an exposure b,
| the postal authorities. AS it was, /
says several hundred thousand dollar
were secured from small investors il
! the United States and Canada.