The Mobridge news. [volume] (Mobridge, Walworth Co., S.D.) 190?-1917, 1912-11-22
HALT FRAUD SCHEME
cET-RiCH-QUICE PLOT LAID TO
SIX ARRESTED IN AS
MANY CITIES.
WE'RE STOCK BROKERS"
Posed as Such for Small Promoters
and lnventors-Victin1s
Lost Over Million
Dollars.

Cincinnati. Nov 2O-With the ar
rest in six cities, of men alleged by
the government to constitute a monu-
mental get rich quick chain Of swind-
lers Ulited States secret service men
declare they have brought to the sur
face an organization that has mulched
small corporations. inventors and pro
moters of $l,500,000 in the last three
years The arrests were made as the
result of secret indictments returned
here by the last United States grand
jury. Those arrested we're:
+. ID. Minyard, at Cleveland Ohio;
George S. Hannaford, Chicago; S. b.
Warren, Rochester, n. Y: Mason G.
Worth, New York; Thomas Fishwick,
Boston; A. Bruce Crane of Newark
y. J.
The indictments were returned here
against five men who are alleged to
have constituted one link of the chain
The five are Mnyard, Hannaford,
Fishwick and j. r. Long. and J. G.
Malcolm. who are said to be in Can
ada. The other arrests were made on
aftidavts of government officials.
Much of the evidence which result
ed in the indictments, it is said. was
given the grand jury by a woman,
Miss Clara Kronage. formerly employ
ed as stenographer by the firm OF Min
yard, Kessler and Malcolm.
DJop ~ Oper,<jon
The plan CT operation, it is charged
in the indictments, was for members
of the concern to advertise their abil-
ity to sell stocks for promoters and in
ventors. Those who answered the ad-
vertisemert were told that the stock
could not be sold at its true value un-
less guaranteed by reliable guaranty
The customer then was recommend.
ed 1t is charged, to George S. Hanna
ford. who conducted the Chicago De-
benture company. Hannaford. the in
dictment states, would guarantee the
stock, charging one per cent Of its
par value. The promoter then would
entire issue had beer found, provid-
ing the proposition was found worthy.
A charge rating as high as one-third
or sometimes 45 per cent of the par
value of the stock, would be made for
this investigation. Afterwards the
promoter was informed that his propo-
sition had proved to be no good and
was dropped.
Proceeds Divided.
The indictment charges that the
proceeds from the two Investigations
were divided among members of the
brokerage concerns and the debenture
companies. No effort was made to
sell any stock, it declares, and only
a perfunctory investigation made of
the merits of the different enterprises.
The individuals and corporations
named in the indictments here as hav-
ing been victims of the brokers in.
clude the Bitter Root Valley Fruit
and Products company. the Folding
Fibre Box company, the Goldfeld
River Bend Mining and Milling COM
pany; the Tucson Consolidated Min
ing company. the Derbyshire Manu-.
featuring company. the United Mine
and smelling company. the Burrell
Manufacturing company, Bradley, Ill., !;
w. RI. Morey, Rockford, ILL.,, and j. H..
Wissow, Milwaukee, Wis
Letters In Evidence.
Numerous letters, advising prospec.
tive customers to communicate with
the Chicago Debenture company or re-
lating to the sale of stocks were at.
tached to the indictments as evidence.
The sending through the mails to
j. II. Wissow, of Milwaukee a pamph.
let called Investment VS.. Specula-
ton" was made the basis of one count
in the indictments.