New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-03-28
Archie |. and {. S. WIsner and
&C. TrumbeII, Their Cashier,
Arrested for Frauds.
MANY INVESTORS COMPLAIN
orerated as Standard Securi-
ties Company, and Prepare
New Promotion Scheme
as Offices Are Raided.

-, o,,;or schemes of \. Y. Wisner & |
a. ,be,r somewhat hurried de |
- er,n, ths Wall street district /.
-. .,,,,,,er was rsided yesterday by /
-o..o4,o. ineneCtors Archie L. Wisner !
nresident % the standard HecuIlNes
& Con,nsnv. and II 4 l.. Nisner d" Co
1visner. treasurer. and George Z.
r,,r,beu cashier. were arrested. and !
later sent 10 the Tombs. When they
failed - get the required hail
circe the time Of the raid on " +.
c..b.fte1s G. Co. last summer, complaints
have noured into the office of Warren
". Dickson. chief postof1ce inspector
end since early in January. the Woeful
.,lAs ~ investors about the schemes Of
Wisner & CO srd the standard
securities Compsnv 50 increased in vol
,,v,e that rir Dickson assigned four in
sractors 20 the case Inspector Boo'n
nee cent West - investigate the prop
er,,es that the 'auurins prospectus Of
wnsrer and mis- companies declared ~
afford veritable opportunities Of untold
,,chas 70 small investors. Inspectors
v,csid Greggs and Mayhew gathered
a.. evidence here.
l.~ord1nc % Mr. Dickson the scheme
n 7. yvisrer & &C. an9 the Standard
,,.crri-ies Corpany was - sell stock OF
I'll 4olss. copper. gold and other mines
.hat had ceased 70 operate or had gone
c,,- of existence entirely. Two million
dollars was said 70 be low estimate If
the amount taken in b. 4 L. Wisner and
his associates from 1eoo TO date.
Mail lis. Of 10000
The game was PLAYED entirely through
the r7ails. The companies Of which the
Standard Securities Company. or A T.
UisDer & Co. announced themselves as
promoters. financial representatives or
stock underwriters. had attractive names.
and one Of the largest sucker lists" ever
found hv the authorities furnished ad-
dresses or more than one hundred thou
eard mon and women, who We're consid-
cred easy prev
Nineteen oil. copper snd gold mines
we're on the list of Wisner and his asso-
GATES. and six Of them We're amalganat-
81 into one holding company With a
capital" Of 100000 20 give the impress
7ion thar the promoters were aware Of
the possibilities Of. consolidation and
monopoly. The literature was most 81
lurlrsly prepared. and good care was
taken 70 have we'll known names appear
IN the directorate Of each company.
The Hale-lIcLeod OIL Company. which
ratted Wisner and his partners a huge
rroff. according 70 postoffice inspectors,
although The we'll represented no value
YVES announced as having a capital stock
NJ =. 100000 and the list Of its officers
named fin the pamphlet included high
officials If the state If Tennessee.
Nathan ~ Hale. 2 former Congressman
and president Of the Knoxville Nursery.
pae named as The president. Among the
directors II the company we're listed 3.
w HOOPER. Of Newport. Tenn. attorney
and capitalist. and Governor elect Of
Tennessee uow GovernoD: and General
! II. Penland Of Knoxville. Tenn, Unit
ed states Attorney for the Eastern Dis
tri-t - Tennessee.
New Scheme Was "Oroan,zirg."
When tho postofTice inspectors raided
the place yesterday thev found stacks of
circulars and letters ready to promul-
gate q new scheme. This was the New
York Concrete Block Company, and it
was announced IN the circular as or
s9nlzing" under the laws Of Delaware.
Charles . Little OK New York. accord
Ing 20 the prospectus with the Stand
ard ON Company! appeared as presi-
GENT and among the directors named
Yer- + \. n. Rousseau. Of New York,
siso With the STANDARD oil Company
Ina Houghton Wheeler. of Far Rocka-
way. y. y. Formerly with the stand
ard OIL COMPANY" The standard Sc
cuIties Company figured as the finan-
cial representatives. and underwriters Of
tbe stock that was 10 be issued TO the
amount Of 500. 900. ii: so par.
The main attraction Of the Wisner ad-
,ertsing was what he chose to cal
$3ppH.oo0 guarantee fund. which he de-
,crIbed 9 being composed Of gilt edged
securities repre- senting that value This
tun9. Wisner and his associates declared
~ their letters. was created for the pro
iEfilo0 o. 1lcH fuSibiifiSs "iip - GU
one ~ them had reason 10 be dissatis-
fed with an investment made he could
exchange -ho securities purchased for Sc
curties held IN the guaranty fund. Ac-
cord,ns - the postofice inspectors TINS
fund was made up n the par value OF
worthless securities handled By the Two
companies
Quiet Chance Of Address.
Z, Wisner & Co was incorporated
tnGer the laws of Arizona in 1917 ana
ini asst summer conducted flourish
iae brokerage" business at No. - wall
ftreet The disfavor with which their
sct~ities we're regarded IN Wall street
resulted m 2 quiet change Of the hrm
Offices Then there was 1)N among 'hs
righteous i'm Wall street who prociaimeo
tha' they had smoked out "lsner &"
60
The Wisners formed the standard
tecurities COMPANY as holding com
rany and continued their business.
When the postoffice inspectors ana CITY
detectives entered their Offices yester
day they were greatly surprised. Dut
offered no resistance They were ~
rsiPred before United states ComiIis
sioner Gilchrist who hXed the ban or a.
! MrfcV~~ g ClD ~ that OF r.. -.