The Sentinel=record., 1912-11-19
MANY TAKEN IN BY FAKE SYS. ITEM OF SELLING BONDS BY
 A SMOOTH CONCERN.
SEVERAL FIRMS INTERESTED
Victim Required to Put Up Marqn for Guaranteeing and investigation q But Actual Sales Never Oc-
 cured, it is Charged.

Cincinnati, O., Nov. 1S.-With the arrests today i'll six cities of men al legged by the government, to consti- ute a monumental get-rich quick | chain of swindlers, United States se- cret service men declare they have brought to the surface an organiza ion that has mulcted small corpora | tions, inventors and promoters of $l,- 5J000 in the last three years. The arrests were made as the result of secret indictments returned here by the last United States grand jury Tbuse arrested:
 l F. D. Minyard at Cleveland Ohio George s. Hannaford, Chicago; H. E. | Warren. Rochester N Y.; Mason G. Worth, New York; Thomas Fishwick, Boston; A. Brue Crane Newark N. l l Indictments were returned here against five men who are alleged 70 have constituted one link of the chain. The five are:
 Minyard, Hannaford, Fishwick, and J. R. Long and J G. Malcolm, who are said to be in Canada. The other ar rests were made on affidavits of gov ernment officials. The three indict- ed in Cincinnati win be returned here 1 for trial.
 | A federal grand jury at Rochester | is now said to be Investigating branch l es of the alleged swindle, while the | grand jury at Buffalo will convene | tomorrow, to take up the case. Much of the evidence which result | ed in the indictments, it is said, was given the jury by woman, Miss Clara Kronage, formerly employed as steno- grapher by the firm of Minyard, Kess- | CT and Malcolm District Attorney McPherson today held a long confer ence with Miss Kranager, and it Is i said she would go to Rochester to- morrow to testify before the grand jury there,
 The plan of operation, it is cha-g- ed in the indictment, was for mem bers of the concern to advertise their ability to sell stocks for promoters and inventors Those who answered the advertisements were told that the stock could not be sold at it's true
 value until guaranteed by a reliable guaranty company. The customer then was recommended, it is charged, to Geo. s. Hannaford, who conducted the conducted the Chicago debenture company.
 Hannaford, the indictment, states, would guarantee the stock, charging one per cent. of it's par value. The promoter then would be informed that a purchaser for the entire issue had been found, providing the pToposi- tion was found worthy. A charge rat ing as high as one third or sometimes 45 per cent. of the par value of the stock would be made for this investl- gation. Afterwards the promoter was informed that his proposition hal proved to be no good and was drop ped.
 The indictment charges that the proceeds from the two investigations were divided among members of the brokerage concerns and the deben- ture companies. No effort was made to sell any stock, it declares and on " a perfunctory investigation made of the merits of the enterprises.
 The individuals and corporations named in the indictment here as nav ing been victims of the brokers in- cludes the Bitter Root Valley Fruit and Products company, The Folding ink Fibre Box company, The Goldheid River Bed Mining and Milling com many The Tucson Consolidated Mn ling company, The Derbyshire Manu- featuring company, The United Mine and Smelling company, The Burrell Manufacturing company, Bradley III nois: w. s. Mercy, Rockford, Illinois land l. H. Wissow, Milwaukee, WIS.
 Numerous letters, advising prospec- tive customers to communicate Wlth lthe Chicago Debenture company, or relating to the sale of stocks were attached to the indictments as eyld enee.
 | The sending through the malls to | Fl E Wissow. of Milwaukee, a pamph- Iet called investment vs. Specu.a- | tion was made the basis of one count in the indictments.
 Warren is president of the Ameri
 can Redemption company at Roches- Her and Worth was charged With complicity in a scheme of def1aud III
 connection with the Rochester con
 cern Government officials declare
 that they have evidence showing
 these and other concerns all were h-
 xolved in the one chain
 The firm of Minyard, kessier anu
 Malcolm. whose activities here ase
 said to have resulted in the govern
 ment investigation went out oi pusi. l ness last April, and its members all