New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-21
pOStOffiCe Investigation of Ster-
ling Debenture Corporation
Results in Nine In
diCtmentS.
SIX UNDER ARREST HERE
Sale of Stock of Oxford Linen
Mills Basis of Charge That
Investors Were Mulcted
by False Repre-
sentations.

Former and present officials of the
Sterling Debenture Corporation, of No.
1873 East 10th street, which has sold
stocks and bonds of industrial corpora
tons for the last five years. and, ac-
cordng TO the authorities, has mulcted
investors Of at least S10.000,W0. were
arrested yesterday by postoffice in
spectors on indictments charging them
with fraudulent use of the mails.
Although the Sterling Debenture
Company has acted as fiscal agent for
number of respectable business enter
prses and has sold some good securi
ties on commissions. the postofiice
authorities, after an investigation
which lasted more than a year, got
evidence tending TO show that the
company promoted many wildcat
schemes in which credulous investors
sank millions of dollars without any
chance of ever receiving returns for
their money.
The indictment charged fraudulent
use of the mails in the sale of the
stock of the oxford Linen Mills.
Maine corporation. with manufactur-
ing plant at North Brookfeld, Mass.
This company was capitalized at ST.
100000, while its subsidiaries. the
Eastbrook company and the Oxford
Linen Mattress Company. had a capt.
talization of 100000 and $600,0oo re-
spectively.
Six Men Arrested Here.
OF the nine men indicted the follow
ing six were arrested in New York:
Frank w. Shumaker, former president
Of the Sterling Debenture Corporation
and one of the founders of the busi-
ness: Samuel L. Findley second vice
president; Harry II. Platt, at present
an officer Of the company; Elwyn a.
Barron, president Of the company; Sid
ncy G. Rosenbaum, with offices at No.
- William street, counsel for the COM
lany and a director. and Wilbur n.
stone. of No. 13 Park Row, a patent
attorney and a director in the oxford
Linen Mills.
George II. Middlebrook, first vice
president of the Sterling Debenture
Corporation. was arrested in Chicago.
where he lives at No. 2713 Michigan
avenue. Benjamin c. Nudge, president
If the oxford Linen Mills, and Frank
i. Winchell, a former president Of that
company, will be arrested at North
Brookfeld, Mass
OF the companies which thus far have
either failed to give returns TO in
vestors or have burst like soap bubbles
the postoffice inspectors enumerated
the Telepost Company, with a capitali-
zation of S1S,OOO,0O0; the Telegraphon
Company, capitalized at $4,000, 600; the
Boston Securities Company. with a
capital Of $2,750,OO0; the Dictagraph
Company, with S2,O00,000 stock. and
the Bartica Rubber Company, with a
stock issue of 100000 and a bond
issue of 100000.
Complaints concerning the activity of
the Sterling Debenture Corporation be-
gan to come to the postoffice inspectors
three years ago, but the legitimate
business transacted by the concern
seemed to make an exposure difficult
4 year ago Warren w. Dickson, chief
inspector for the New York division,
found that the complaints were grow
ing in number, and assigned Inspector
G.. c.. Kimball 10 make thorough in
vestigation. Mr.. Kimball began the
Continued on fourth page. fifth column.