The pioneer express., 1912-11-22
HALT FRAUD SCHEME
GET.RicH.oUIck PLOT LAID TO
SIX ARRESTED IN AS
MANY CITIES.
WERE STOCK BROKERS"
Posed as Such for Small Promoters
and lnventors-victims
Lost Over q Million
Dollars.

Cincinnati, Nov. 2O.-With the ar
rest in six cities, of men alleged by
the government to constitute monu-
mental get rich quick chain of swind-
lers United States secret service men
declare they have brought to the sur
face an organization that has mulched
small! corporations, inventors and pro-
moters of $1.5O0,000 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 were:
F. D. 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,
N. j.
The indictments were returned here
against five men who are alleged to
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 Can
ada. The other arrests were made on
affidavits 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.
Plan Of Operation.
The plan of 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-
vertisement were told that the stock
could not be sold at it's true value un-
less guaranteed by reliable guaranty
company.
The customer then was recommend
ed, it 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 it's
par value. The promoter then would
be informed that purchaser for the
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-.
facturing company, the United Mine
and smelling company, the Burrell
Manufacturing company, Bradley, ILL.,;
w. H. Morey. Rockford, ILL.,, and ]. 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. H. Wissow, of Milwaukee a pamph.
let called Investment VS.. Specula-
tion,' was made the basis of one count
in the indictments.