The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-10-09
FRAUD CHARGED|N
MAGAZINE MERGER
Postal Authorities Begin 1nvesti-
cation of Columbian Pub
fishing Company.
BOOKS AND PAPERS SEIZED
Stockholders OF Hanlpton's Anx-
ious to Learn What Became
OF $35o,ooo Assets.

New York, october Sin an inquiry
by the postal authorities into allega-
tons of fraudulent use of the mails
in diverting and selling magazines.
All the books and papers of the Colum-
bian Magazine Publishing Company,
prior to it's recent merger with Hamp-
toms Magazine under the direction OF
the Columbia Sterling Publishing Com
pany. were surrendered yesterday.
The action was taken in answer to
subpoonas to appear before the grand
jury and testify concerning the assets
and business methods OF the Columbian
Publishing Company prior to Its mer-
ger with Hamptons. Three other Off
GERS and associates of the old Colum-
bian company, II was reported, have
been subpoenaed to appear before the
grand jury of whom two are said TO
have left the jurisdiction of the Fed
eral court since the postal investiga-
ton started.
The investigation was set afoot as
result of complaints by preferred
stockholders of Hamptons Magazine
who some months ago found them
selves called upon to exchange two
shares OF their preferred stock for one
share of common stock in the Column
bian- Sterling Company, with which, to
the surprise of most of them, they
learned their magazine had been
merged.
Certain of these stockholders and
creditors of Hampton's Magazine. chief
among whom is Benjamin b. Hampton
himself, are now anxious 10 know
what is going to become of the merged
Hampton Columbian Magazine and
have Joined to gcther to COM
fer with tho management OF tho
Columbian Sterling Company be-
fore resorting to the extreme meas
use of throwing the magazine and It's
publishers into receivership.
Benjamin Hampton made n state-
mcnt last night in which he says that
two years ago. in order to avoid fall
ing under obligations to big monoyed
interests, It was decided to appeal to
the public to become stockholders OF
the Broadway Magazine. and 1000
subscribers paid In their money for
per cent. preferred stock with n bonus
OF common stock. From time to time
thereafter each stockholder received
circulars telling of the remarkable.
and It was said. unprecedented growth
in tho magazines circulation and Rd-
VertisinG matter. The stock holders
presently began to wonder why
magazine that was growing more rapid
~ than any other. could not pay at
least n small dividend. Hamptons
never. old. All the large earnings, thcy
ware told. went to build up the mag
azines business.
MIR. Hampton says too small a mar
gin OF working capital had been al
lowed. and last fall the company be-
came pressed for ready money. Then.
he says. the animosity OF the money ed
interests he had attacked BEGAN TO
turn upon him. and attempts were
made TO depress the value of the stock.
while for the needs OF it's business
money was refused AT the banks. The
libel suit of the Standard Oil Company,
too, he said. made il hard to get loans
In April. Mr.. Hampton says. when
the press for money was at its worst,
he was Informed that the Columbian
Magazine. backed by big capitalists.
wanted to buy liampton's. 1t was rep
resented 10 him. he says. that the CO.
lumbar had cash ana bonds 10 the
amount of 100000 aud available quick
assets of $4,000 more. y proposition
was made, he says whereby the Co
lumbar people were to pay him
100000 in cash for his stock and
claims. to make a satisfactory nfror
of exchange to Hampton's preferred
stockholders. or to buy back their
stock at par, plus interest. Later
however, he says. there WAS consid-
cradle discriminating by the Columbian
Company and lIampton's declared the
deal off.
In the last week, MIR. Hampton SAYS
with his company facing several smali
suits which they feared would bring
on receivership, he learned that
Frank orr, OF st. Louis. was consoli-
dating the Columbian Magazine win.
several of his own publications, and
wanted TO take over Hamptons
We objected 10 any deal with any
one connected with the Columbian be
cause of our previous experience" lie
says. but when we were convinced
that we could make no other move.
our representatives met Mr. ORR and
ms lawyers. and contract. which was
not satisfactory in any way 10 U.S. was
accepted because we believed 1t meant
mat our creditors would be paid in
fuil and that the Investment, of our
stockholders would he saved
lF Hampton declared that he him
ss!f declined TO hold stock in the com.
pany because he did not wish to be a
partner In publishing business no