The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-08-31
POST OFFICE CALLS A HALT
ARRESTS IHE-PRESIDENT or
S.O.OOO. OOO ENCHiNGE.
charged That the Cooperative nited IN.
change HAS Been sing the Walls TO
Defraud In . Get Rich Quick swtndIe
Many More Arrests Expected.

CHICAGO Aug ~ Tho gas bag oi
the Cooperative United Exchange. a
$50 go .OOn get rich quick corporation or.
sanized last April under the laws ri
Arizona was punCtured to-day with the
arrest ~ William II Holcomh. viCe-presi.
dent and general counsel. by United States
Post Oric~ inspectors az the Park row
depot following his arrival here from
Nashln gton-
Holcornh r. charged with using the
mails for fraudulent purposes Warrants
for the arrest of the Acknowledged prin-
ciIas in the big swindling deal have heen
sworn out and a score ~ arrests are eN-
pected in various parts Of tho United
States hv tomorrow. strenuous Efforts
were put forth by the Government ON
cials N keep the arrest a secret and the
information only became public through
the Arrangement - Holcomh lefur''
United states Commissioner Marx 4
Fuota. wher~ he was released m s. 10o.
Half an hour after ~" apprehension ~
Holcnmb the main offices II the concern
roorl 40 az isa Iasnl. street. were raided
and a wagrnload of literature was CON
fs,ated
The concern was organized A. PhpniS
AM. IN April 81 this year. Its alleged
purpose was 10 Investigate corporations.
undarwrite bond issues. TO sell bond ISSUES
and 70 act a. a general financial rnfOrma-
ton bureau The general Offices were
located IN Chicago. with branches at
Phrnix. san Francisco and Washington
According 20 the post offic" officials its
real purpose was To- sell its own s2o."O. Ono
= in 10 Iah
Sanitarium and Farm Company. another
alleged wildcat scheme. and to bond its
own employees at IS "A head in the Metro
politan Deposit and Trust Company. an
other Arizona concern. organized ny the
promoters 81 the t2o 90 .OnO parent com
pany The officers of the company are
Elmer Conner. San Francisco. president
William ". HolcJmb. formerly Of San
Diego. cal vice-prt-ident and general
counsel: Al wood Wiltshire. secretary and
treasurer.
The arrest Of Holcnmh and the IsSu-
anca Of warrants for other officials IN
said to hav. been the result NJ disclosures
made hy r n Hsnngtt. division nlanag ar
No J. in charge Of the Washington offices.
Previous To this tune. ~ - Said, thou
sands of pamphlets s"nt out hy the con
Germ had been coniisC Ited by IN" mail
au,horities \ contract made by the
Cooperative United Exchange with Rem
nett ~ IN the possession ~ the inspectors
The extent Of the corporation activi-
ties ~ held a secret bv the Post Office
officials Several hundred state mana
gers, local agents and representatives
of the concern ARE said Ia H. on IN" com
pany's hooks Each ~ them ~ declared
la have been compelled Ia raw from 500
10 $50 into the company's Golfers
Two methods by which the corporation
ia alleged to have swindled its own EN-
ploye~s are a. follows
Each employee who held position
lower than state manager Was COM
PEELED To buy SO worth Of stock IN the
company
Each MINOR employee was compelled 10
he bonded for $50 IN the associate con
Germ. the Metropolitan Deposit and Trust
For this hond thev paid g. cash each
State managers. under their contracts.
were to receive their first years salary
in the stock ~ the concern
The Federal officials charge that the
contracts which the agents entered into
10 many -Iokers- that u would
~ impossible for the employees To mect
Z he requirements A. a result an endless
chain 81 fire and hire would result. with
SIS clean money going into the company's
treasury with each appointment