New-York tribune., 1911-04-05
RAID PROMOTERS OFFICE
Postoffice Authorities Arrest
"Major' W. G. Motley.
FINE EQUIPMENT FOUND
Peerless Sucker List" Discov-
cred, Say Inspectors, Who
Also Meet Old Friends.

Major" William G. Motley, for ten years
undisturbed promoter Of mining schemes.
was arrested yesterday by postofice in
speetors in a raid on his Offices at No %
Broadway, where he was doing business as
w q. Motley & Co He was charged with
using the mails in a scheme to defraud in
vestors. and after brief visit to Police
Headquarters he was arraignei before
Commissioner Shields, who fixed his bail
al $500
Although Motley was handling half a
dozen mining propositions, TIE particular
charge against him is based on his pro
noting" activities as president of the Cold
Spring Quartz and Channel Mining Com
pany, OF Nevada County, Cal. which was
supposed to be also a holding company for
the Gold Star Mining Company.
The Authorities charge that Motley So
lcted money for stocks in enterprises
which paid dividends. but did not earn any
They allege that he used part Of the re-
ceipts for the payment CT the fake divi-
dends. These charges were first made 10
the postal AUTHORITIES By stookholder OF
the Cold Spring Quartz and Channel Min
ing Company. who for a time was also
manager of the mine
A A Charonnat of Nevada City. Cal,
who was the complainant. wrote that in
August, 1909. while Motley was out West,
they agreed 10 form a corporation and TO
issue stock TO finance the enterprise. y
certain amount was 70 be placed in the
treasury and the rest sold through Motley
With the aid Of circulars Motley sold nifty
thousand shares of a par value Of 81, an1
gave the original purchasers options on
fifty thousand more shares
IN January. 1910, he wrote to Charonnat
to start work on the mine and TO produce
some clean-ups' so that a dividend could
ts allowed and the stockholders would be-
come eager 20 take up their options
Charonnat refused 10 do anything before
certain obligations were met, he said. and
in May Motley came TO the mine and
placed a new manager in charge. They
started 10 take out as much as possible, 90
Charonnat alleges. and II cost & for every
dola- they took
\ report was then issued that divi-
6erd would be declared soon. and when
the investors failed TO respond eagerly an
actual dividend was declared
Postoffice Inspectors k.ncaid, Reddy and
Booth, who made the raid were greatly
surprised when they entered Motley office.
Ghosts Of their former raids on get-rich-
quick concerns seemed TO arise before
them. They saw two clerks OF A. l.. WIS.,
ner & Co., whom they put ouI OF business
only d week ago; there was the star
author OF the catchy literature that en-
tangled 50 many in the meshes OF a Wire
less telegraph company raid last fall
and there were other adopts at the work
Of separating the credulous from their
mcney.
The surprise was mutual, however
There was i general desire 10 reach hats
and overcoats, and every man assured the
inspectors that he had just dropped in to
md some sort of JOB and that he had
no idea of what Motley was doing
Among the discoveries made in the Office,
the inspectors say, were the finest address
ing machines they had ever seen. The
addresses We're all in type, and mechani-
caly the machine would turn out thou
sands of envelopes ready 70 be mailed ;
and the sucker list, they say equaled in
size and quality any thus far found IN
RAIDS.