New-York tribune., 1911-11-09
ORFF AND ATKIN ARRESTED.
P. O. inspectors Charge Fraud
in Selling Magazine Stock.
ORFF TALKS OF THE MERGER
Both Are Sent to Tombs in De-
fault of $4,000 Bail-Sale9-
men Also Arrested.

ON the same charge which was the basis
Of the request Of feGeral inspectors Iast
June for the production OF the books OF the
Columbian Magazine Company. which was
merged with "IIampton's Magazine under
the direction Of the Columbian Sterling
Company. Frank ORR, presdeT of the lat
ter concern. which was forced into involun-
tary bankruptcy last month, and John f. Is.
Atkin. a Philadelphia lawyer, said to have
been the legal adviser OF ORR and other as
sociates in bringing about the formation OF
the Columbian Sterling Company, were ar
rested yesterday on warrants sworn 10 Dy
the postoffice inspectors and arraigned be-
fore Federal Commissioner Shields on the
charge Of using the mails to defraud.
Neither could produce the $4,000 bal! upon
which he was held. and each was locked up
in the Tombs.
The arrest Of orr and Atkin by no means
ends the preparations for action against the
officials Of the bankrupt syndicate. war
rants are out for more men, two OF whom
have cluded the uostofice inspectors for
more than a month. and are believed to he
beyond the jurisdiction Of the federal courts.
The arrest OF two others may be made at
any hour.
The basis OF the specific frauds alleged
against Orff and Atkin is the use Of the
mails 10 lure people into subscribing for
stock in the Columbian-Sterling Company
on the strength Of a DE per cent quarterly
dividend declared September l.
An examination of the books of the Co
iumbian-Sterling Company and those OF the
old Columbian Magazine" which was alb
sorbed along with "Hampton's Magazine
convinced the inspectors that the concern
had nothing on which TO declare dividend.
Instead Of having a surplus. the syndicate
Rad suffered a loss during the first quarter
OF its existepce Of Sc4z,524, and the federal
authorities Immediately took action This
single example Of fraud, according to the
inspectors but introduced d series Of pre-
vious deals whereby "The Columbian Maga-
zine" before II was sold 20 Orff TO he
merged with "Hamptons Magazine" was
looted Of nearly 100000 worth Of its cash
resources.
Atkin was the first one arrested yester-
day lie was accused in the complaint Of
obtaining money by means of falsehood and
hy representing that the Columbian Sterling
Company was in good financial condition
and would pay a dividend soon out Of the
surplus. orr. who was supposed TO be in
ST. Louis, whittier copy OF the warrant
for his arrest had neen sent was found In
The Office Of the Christian Science Publica-
3 ton Committee. at 40. 1 Madison avenue
lIc took his arrest calmly. saying that he
would "bc i'm error" If he allowed anything
10 worry him and processing innocence Of
tho charge against him.
last MAY" said Orff before he went 10
the Tomhs. "E. y. Yates and Samuel Tilden
Aber. who were botn interested I'm The Co
umbian Magazine came 10 St Louis and
interested me i'm a plan 10 merge my West
ern magazine with theirs. I came on IN
New York looked tho proposition over liked
IL ana purchased Tho Columbian Later
made arrangements TO secure Benjamin
Hamptons controlling interest i'm the com
mon stock Of 1Iampton's Magazine and
merged that magazine With the others. I
was made president Of tho new holding
company.
When some of the officers Of the Co
lumban-Sterling COMPANY came 10 me and
said that q dividend would he declared al
thc end Of the first quarter September T.
told them would not agree so it unless tho
attorney Of the company said that the step
Was legal n was represented 10 me that
sufficient surplus for the declaration Of the
dividend was on hama. an1 7 accepted the
statement of tho auditors as correct with
out ft~ther question. But tho attorney did
not approve Of tho dividend. and the propo-
stion was roscildcd. That is all / know
about IT,"
rhe posto7ico inspectors said If any order
for the resembling II the stock was issued
~ was only after the company had attract
Cd the attention Of the federal authorities.
snd that, at any rate the stockholders
heard nothing about such IN order
Eugene Yates was arrested last night at
his home. No 1914 Avenue T. Rrooklyn or,
a warrant issued by United States com.
missioner Shields. charged with fraudulent
rse OF the mails in attempts 20 sell stock
OF The Columbia Sterling Publishing Com
pany.
Yates. who is n salesman. was said to
he one Of tho directors Of the magazine
He was taken 10 the FlatbuSh avenue
lohce station, where ne was locked up.