Newark evening star and Newark advertiser., 1912-11-18
Raids Made Here
andElsewhereUpon
a Chain Of Finan-
--ChargeF raud.
A. BRICE CRANE, LOCAL
BANKER, UNDER ARREST
Concerns offered to Furnish
CapitaI-Forced Clients to
Patronize Guaranteeing Com
pany, Paying Heavy Fees.

l Federal and local officers today
aralded the office of Hunter & Crane.
800 Broad street, and arrested A.
Brice Crane, 2S years old, broker,
of 1s1 North Fourth street, surviving
member of the firm.
TIE technical charge against Crane
Is using the mails with intent to de-
fraud, and he is said to have con-
Quoted swindling operations on
large scale by means of half a dozen
alleged fake stock guarantee COM
panies, whose offices in several cities
OF the country were raided at the
same time as that of the local con-
Germ.
The raiders were Lieutenants Maier,
Kuhn, Fohs and Tufte, of the detec-
tive bureau, and Postoffice Inspectors
Entemann and Opdyke. Three large
mail sacks filed with correspondence,
ledgers and papers were taken TO
police headquarters by the officers.
According to the postal authorities
Crane advertised extensively in New
ital to concerns In need of 1t. He
specialized, 1t is said, on mining
companies, manufacturing concerns
and similar enterprises. Upon re-
ceiving ar answer to his advertise
nnents, it is said, Crane would write
back that he was in position to
supply the necessary capital. and
would do so If the company seeking
the help would guarantee its stock
Then, it is alleged, he would no
tify the guarantee company nearest
the prospective client, which in turn
would write the man seeking funds
offering to guarantee his stock for
l per cent. of the capitalization OF
hts company. The guarantee COM
panies said to have been working
with Crane are the American Re
demption Company, of Rochester, n.
". the Chicago Debenture Company
the Affiliated Brokers in New York,
Chicago, Boston, Dubuque and Dal-
las All of these concerns were raid
ed simultaneously.
1t was for this guarantee fee that
Crane worked, according to the au-
fhorities. The capitalization promised,
1t is said, never came, for on one pre-
text or another the local firm would
inform the concern requesting capital
that examiners had found things not
as represented, and that on that ac-
count it would be impossible to sup
ply the money requested. That is
why. the federal officers say, that
mining schemes and factories were so
popular with Crane; these permitted
sending an engineer or an expert" OF
some kind or other to make an ex-
animation and turning down the COM
pany desiring the loan on the adverse
reports of the experts"
Crane, it is said, also operated with
A. J. Dent, of London, who traded as
the International Bankers Alliance.
Dent, the authorities say. has small
office in a remote part of the British
city, but the high sounding name of
his concern and his elaborately en-
bossed stationery proved excellent
bait to prospective clients of Crane
& Hunter.
All in all, the officers who have in
vestigated Cranes concern and the
subsidiary companies say that the
alleged fraudulent scheme worked
from this city was one of the most
colossal swindling operations ever at
tempted in this country. There is
no way of telling at present. the off,
GERS say, to just what extent the
scheme was successful, but 1t, they
declare, is probable that more than
100000 has poured into the local office
from firms which sought capital.
Contract Filled With JOkers.
The contracts which Crane sent to
prospective clients. the government
men say, were filled with 'jokers
that would easily escape the notice
Of the reader at first glance. First OF
all there was a clause in every one
It is said. to the effect that it would
not be binding until stock Is guar
anteed" Then, the officers say, there
were other sections in the contract
leaving Cranes customers open to
no other course than to patronize one
Of the stock guarantee companies.
Crane was taken from his Office
to police headquarters, where he was
given into the custody of Deputy
United States Marshal Louis G.
Beekman. He was arraigned be-
fore United States Commissioner
Stockton, and in $4,000 bail held
for trial by the Federal Court OF
The Western District of New York,
now sitting at Buffalo. Crane will
appear before the court next Mon
day. Bail was furnished by his
msfher-in-law.
" IS Alice Shaw of ZIG Oliver
sti' ct, stenographer for Crane, was
served with a subpoena 10 appear as
" tness against Crane. when the
officers entered the office. She was
given the alternative of accepting
service or going to Jail, and decided
to pursue the former course.
Crane made the following statement
IN the Evening Star this afternoon:
"The arrest this morning was very
Inuch of a surprise as my business
has always been carried on in a
Straightforward legitimate manner.
Such charges as are made against
me am not familiar with. The
charges, whatever they may be. have
absolutely no foundation. If | have