The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-06-07
.DUPES OF PLASS
TELL ABOUT It
RedeemabIe investment Company Is
on Trial for Using the Malls In
Scheme to pefraud the
People.
PREFER PROFESSIONALS
Preacher at Red Oak, Iowa, Invested
500 and Could Not Get His
Money Back When Re-
quested It.

mony intended to support the govern
ments contention that misrepresenta-
tions regarding the value of property
owned by the Redeemable Investment
Company were made in circulars sent
through the mails by the company,
was introduced at the trial in the
/ United States district court Of Rev.
Norman Plass, former president OF
the concern Charles H. Books, it's
agent, and John I. Traphagen, its
1 treasurer.
The treasurer of the Consolidated
! Iron and Steel Company of Cleveland,
Ohio Frank S. Yesbera, testified that
his company owned certain iron and
coal mines in New Mexico, which
we're described in a booklet sent
1 out by the Redeemable Company tn
prospective investors, as the property
Of the Redeemable. The treasurer CT
the Boston and Canada Wheat Lands
Company, William G. Poor, admitted
that wheat lands owned by the com
pany, which were described in the
Redeemable circular as being free
from Indebtedness, were in reality
heavily mortgaged
4 1t is thought the government will
ccnclude it's direct testimony today
College presidents and profess
sional men generally invest their
money injudiciously, for the reason
that they are thoroughly absorbed n
their professional work and do not
rake time to look into investments.
This is the sentiment alleged o
have been written by Rev. Norman
Plass, head of the Redeemable Invest
ment Company, to Rev. George +.
Ladd of Colorado. the third clergy
man who represented the Redeemable
Company, who was on the witness
stand at the opening of the court On
entering upon his work in that limo
he had decided, Plass wrote to help
professional men to make judicious
investments. He requested the wit
ness to read the pamphlets inclosed
in the letter and to let him know
what he thought of the proposition
The stock guarantee was per cent,
he wrote and it was earning consi1-
cradle more. with the privilege OF
withdrawing the money on any bank
ing day
Ladd was pastor at Red Oak, la
> at the time. He purchased S100 worth
. of Redeemable stocks and on hearing
of the raid by the postal authorities
asked to have his stocks redeemed
a He received in exchange, he said.
i 500 worth of Santo Domingo Mining
p Company stocks.
a Gorge w. Mitchell. postmaster ot
d South Britain. Conn. told the jury az
4 met Psss at his home in 1909 and in
vested in the Redeemable stocks.
n Plass stated in letter to the w;i-
V ness that the vice president of tho
company had invesed $4,000 cash n
e the Santo Domingo Mining COMPANY
: and that over s5,O0O00o worth Of
t gold was at the time In the dump at
the mine
4 James W. Mitchell, manager Of the
National Surety Company of New
}, York, testified that application for
a bonding the company was made in
3 1909, but that the papers were never
l. signed
It Two letters bearing the com.
pany's letter head were then intro
il duced by District Attorney French,
l. in which il was stated that the com
K pany was bonded for 100000.
r A mining engineer of Pittsburg.
Walter Kennedy. said he inspected
coal and iron mines in New Mexico
at the request of w. B. Thomas, sec.
retary of the Consolidated Iron and
Steel Company of Cleveland, Ohio
= He had correspondence with Brooks
about the matter ana made report
to Brooks. These properties, the gov.
:, ernment contends, We're never owned
by the Redeemable Investment Com
pany, despite the fact that pamphlets
describing them as assets of the com
pany were sent out to prospective In
vestors