Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-09-24
New York Postal Inspectors
Arrest Millionaire and For
mer United States Treasurer
For Misuse of Mails.
FLEECED THOUSANDS
OF INVESTORS, CHARGE
Prisoners Plead Not Guilty
When Auaignedi Locked Up
in Default Of Heavy Bail Fixed
By Court


Ivy "'"t"'aAA Nhtf""i FNrNAaf "hVt
New York, Sept. 23.-~lu "A raid on
the stock Investment offices of Jared
Flagg on West Fourteenth street to-
day. Tlage and several other men
were arrested on charge of traudu-
lently usins the mails in a series Of
endless chain schemes 10 defraud in
vestors. Among the prisoners were
former United states Treasurer Daniel
NJ. Morgan OF Bridgeport. Conn,
James X. Shock said 10 have been u
minister of the Dutch Reform
church, Il. e. Tennyson Neeley FOR
merly publisher on Fifth avenue.
this city, Joshua Brown and Harold
Jackson. brokers; Alvin NJ Higgins.
LAWYER and Edward L. Schiller.
The prisoners when arraigned
pleaded not guilty. Bail was fixed for
Flagg at $4,000, Assistant District
Attorney Smith asking for high bail.
because, he said he understood that
FlRgg had St0O0.000 Various
amounts were fined for the others. All
win he given hearing next Wednes
day.
Postoffiee Inspector Elmer L.
kincaid. who made the complaint In
the case, said thousands OF customers
Of the Flagg enterprise had invested
about l,500, 900 in the scheme.
Flagg it is charged. had claimed
that he would invest their money IN
! gilt edge securities which would pay
them high dividends.
According TO Chief postoffice In
spcctor Warren w Dicksoia his at
! ltontion was drawn to Flagg's business
! by conversation with young Wom-
an calling herself Lillian Gibbs keyes
who referred to Flagg as Financial
Wizard" Inspectors reported that
former United states Treasurer Nor
gan was interested In the enterprise Co
the extent ol S200.000 The scheme,
laccordmg to the authorities has been
| In operation for more than eighteen
/ months.
Al a late hour no bail had been
secured for any of the prisoners and
| they were locked up In the Tombs
prison for the night.
! when asked II he had guaranteed
to pay - per cent a year on invest
ments. Flngg responded quickly az
he produced some blank contracts
II guarantee no percentage OF re-
turns on investments handled by me.
/ There ~ the contract my customers
| signed with me- 1t is open and above
| board and retutcs the charge that |
guaranteed fabulous interest.
II can pay every dollar ! owe" said
J Flagg. II have handled Si.l00,000 in
the three years or more that | have
| been In the business and | can account
! for every cent of It. for every trans
action. ! have nothing to fear This
| ls all a vllc conspiracy, cooked mp by
| big brokers and Wall street interests
| that are Jealous OF me-"
! Mn Morgan, who is "A white haired
man. well along in years and Of H.
! dignllied hearing, was greatly per-
turbod upon his arrest This is an
outrage, he said at is the first
time that | have been deprived OF
my liberty for single minute. So far
az ! know, Mr. Flagg is not guilty Of
"a single dishonest act. have known
him tor three years, OF the amount |
have invested with him / have not
lost a single penny but have received
my dividends promptly. according TO
his policy, ana satisfied that tho
business which Mr.. Flagg conducted
! was absolutely honest