Daily Kennebec journal., 1911-04-08
Members Of Boston Firm
Placed Under Arrest.
Wheeler & Shaw Former Agents
for Maine Corporation.
Voluntarily Surrendered and Enter
ed Formal Plea, Not Guilty.

Boston. Anril ON charges of US
| ing the United states mails to de-
fraud the public, Warren B. Wheeler
and Stillman Shaw, of the firm of
Wheeler X SHAW, Inc, formerly fis-
cal agents for the North American
Rubber Co, uf this city and Hyde
Park. were arrested at the Federal
building today after they had volun-
tarilv surrendered to Deputy United
States Marshal kuhl.
y formal plea of not guilty was
entertained when they were given a
hearing before Commissioner Hayes
and the case was continued until
April II. when hearing will be held.
The defendants were released in
So bonds each.
The North American Rubber Co. a
Maine corporation is capitalized at
500e shares of so par each, and
490 400 shares are outstanding in the
hands of 1T least 1000 purchasers in
Boston and elsewhere throughout New
England.
\ majority of the company's out
standing shares are now controlled
by William J. Carlin and Frederick
IL L dN ne tii SClplS VI lIle L Guttttl
Trust Co. of which Mr.. Payne is
vice president
Charles X. Mitchell and NJ, H. Muir
ray, who recently became president
and treasurer of the Rubber Co, fol-
lowing brief terms in those offices
by Messrs, Carlin and Payne. are
working in accord with the latter
The other directors at present are
William L. Buss and Mr.. Riley.
Mr. Carlin is the payee of a note
of $4,000 for working funds advanced
the enterprise late last year. Ths
lease of the companN's plant. COM
prising medium sized one-story fac
tory at Hyde Park. will run out Il
year hence. The plant has been praC-
tically shut down since the first OF
last December, following expiration
of a contract under which its product
was taken by the Boston Betting Co.
During the four or five months prior
to December l this plant made a total
of 30 tons of rubber which is stated
to have sold at 81 per pound.
A rebate or discount. however. of 40
cent per pound from this price is al
legged to have been given on the rub
ber taken by the Betting Co. Evidence
submitted to District Attorney French
by United states post office inspectors
purports to show that the cost of pro-
dueing the rubber turned out at the
Hyde Park plant approXimated more
than 50 cents per pound.
The original promoters. besides War
rem B. Wheeler and Stillman Shaw,
included Albert Z. Ellison, the invent
or of the company's rubber" process:
a. NJ. White of Greenfield y. H. and
Newell w. Bloss of Boston, who re-
signed as "a director upon learning OF
the price rebate contract. Each of these
of their $4,000 each of promoters stock
to pool TO finance their proposition.
and Wheeler & Shaw were appointed to
sell the remaining stock and take en-
tire charge of The plant until the point
should be reached where it was pro-
ducing ton of rubber" per liem.
United States post Office authorities
charge that the scheme was one to de-
fraud the public and warrants were
issued April for the arrest of Messrs.
Wheeler and Shaw.
The charges by the post office inspeC
tors Were that the rubber" manufac
turing process was not synthetic, that
the cost of manufacture was nearer
81 than 40 cents and that the price
which the Boston Betting Co. paid for
the company's product was only 50
cents pound
1t is charged that $500, 900 has been
secured from the investing public. the
,I L-t, oil fol.
resentations. which indicated ii clear
profit of so cents pound. whereas it
is new alleged every pound of the
product was sold to the Boston Belt
ing Co. at heavy loss.