New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-04-10
SAY FRAUD MADE FORTUNE
PostoffiCe Men Arrest Self-StyIed
Investment Banker.
IN BUSINESS FIFTEEN YEARS
Ralph NJ. Jacoby, of No. 30 Wall
Street, Accused of Misuse of
Mails-Held in SO, 900 Bail.

Ralph NJ Jacoby who for fifteen years
has conducted business widely advertised
bv him as an investment banker. was ar
rested Yesterday by postofice inspectors
~, q charge Of using the mails in a scheme
to defraud. Seven mail bags filled with re-
cent correspondence were seized in the Iald
~, 1ocohy's Office. at no 20 Wall street.
In the long list OF compliments, whose
charges led to the investigation by w.
Dickson. chief postofice inspector. there
uaro no residents Of this city Jacoby. II
was said covered by preference that eA-
tensive field Of promotions outside the CITY
limits from coast to coast, even reachlhs
ont into cuba II. Il. Mayhem and r.. +.
Hoss. the postoffice inspectors VINO were
detailed on the case. said that Jacooy
onerations must have Melted him at least
s250,O0O
rro,, his office Jacoby was taken before
Iobn A. Shields United States Commits
s,orer who held him in $1,000 bail for the
action Of the grand jury. Bail was lur-
ni:hed Jacoby is married and lives al NO.
$40 West 57th street.
The scheme. which the inspectors alleged
was fraudulent. was worked by Jacoby
through extensive advertising. His rating
AT $4,000 by one Of the leading commercial
agencies aided him in the game, the IN
spectors said. JaCoby announced That he
was prepared 10 finance manufacturing en-
terprises. railroads mines and any other
conceivable enterprise, organize corpora
tions and sell their stocks and bonds.
Those answering were informed that he
required an advance payment of from ND
10 1900 for fees and preliminary work. IN
Guiding incorporation and the issue OF cir
culars. while he agreed to sell the stock
and bonds on a commission Of from to -
per cent.
The inspectors charged that he would
send out a few circulars. which would cost
him only a small part Of the advance fee.
and then fail 10 do anything more, al
though in all the instances the advance
payment was secured upon representation
that Jacoby would dispose Of the securi-
ties. An example Of his scheme was
shown through his correspondence with a
company in Tacoma. Wash, to which he
wrote on January %. 1909, as follows:
7 am I'm a position 20 quickly secure
capital for the development of coal ana
mineral lands. Two hundred and hity dol
lars will be the preliminary cost Tor or
ganizng. and viii charge a commission OF
per cent net on sales Of securities.
A few days later Jacoby advised the
company TO issue 100000 Of preferred and
$4,000 of common stock. and for fee oil
5000 lie offered 10 organize and incorporate
the company and furnish all necessary sup
plies and printed material. When little
later he found that the company was more
interested in a railroad scheme he offered
to organize the company on the same basis
advising that a survey was not necessary
TO float securities Of railroad.
on April 2s. 1909. he received $500 for
organizing the Western Railway Company.
BY July I he wrote that the prospectus
was ready. and soon he added that he ex-
pected returns. Then. on February p
1910, came this final letter, which let him
out Of the deal:
have been unable to sell any Of your
stock. | would like to hear how mUch YOU
have sold yourself
Jacoby's Office consisted Of three small
rooms. and his only assistant was. until
recently. a stenographer About February
there came from Rogers. Ark, a young
widow. Mrs. r. S. Weille, who tried TO get
Jacoby's help in the promotion Of the Kan
sas CITY and Development Company OF
which she was general sales agent ana
promoter Mrs Wellc was styled by
Jacoby his private secretary when tho
inspectors came into his office. She was
invited 10 go TO the Federal building to
tell the authorities what she knew about
Jacoby's business.
There was TO indication that Mrs. Wcille
was ever required 10 pay the ADVANCE fee
r4ouired by Jacobv She lived AT hotel
and was a frequent visitor in Jacoby's
office.
Mrs. Jacoby refused to discuss the trou-
HE Of her husband She said she had
hoard Of Mrs. Weillc and knew her
SUNDAYS YORK TRIBUNE