The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1912-05-16
METHODS OF "WILD-CATTERS"

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Ralph M. Jacoby who for several years has maintained
office alleged investment banker Wall street. wa
arrested by Postoce Inspector H. n Mayhem and f. f. Hos
on the charge of having used the mails to deaud He ha
been under investigation for several months as the result
complaints made to the postoe inspectors of his methods
doing business which, it is alleged amounted to fraud il
view of the small amount of work he did for the fees he re-
ceived.
The posofce inspectors aded Jacoby's Office and found
there besides himself senographer who has been in his EN-
poy for four years. and Mrs r. j. Wele young widow from
Arkansas who described herself his private secretary ia
coby taken before Commissioner Shields and held in $4,000
bail which he furnished in the afternoon Mrs. Wee was
taken to the Office OF the federal district attorney for examin
alton to what she knew of the business Seven sacks OF
correspondence seized and taken to the inspectors
office Jacoby refused to make statement the reporters.
The arrest made a letter sent to NJ F. Faherty of
the Dixie Chief Gold Mining company of Bradford Pa but
this did not according to the postoce inspectors differ ma
eriay from hundreds Of other communications sent out by
acoby the last few years to other company promoters Chief
Inspector Warren w. Dickson said that Is years ago acoby
here from Stroudsburg Pa where his father cash
er of bank He opened his office in Wall street and began
advertise widely for business Here is typical advertise
men OF his which he put in paper that would take it,
CAPITAL SECURED
for the development Of gold silver "copper" lead and zinc prop
critics. am in position to undertake the entire financing
If any good mining propositions companies organized; act
trustee registrar transfer and fiscal AGENT excellent facilities
or placing treasury stock direct with investors to provide
working capital and for development purposes only standard
propositions coming from responsible persons considered
"RAIPH M. JACOBY,
Investment Broker,
$40 Wall EStreet, New York y
Not content with the customers obtained through these
ces which scattered the inspectors say from Cuba
San Francisco in the technical and daily newspapers ia
coby in the habit of sending circulars to recently
started 10 all he made proposal to undertake the business
lot incorporation OF prospectus and the sending of them out
ITO
ito $780, but he used to reduce this by about 500 if the
company already Incorporated
These fees payable in advance Jacoby offered to
sell fiscal agent the stock of any for commission
ranging from to 20 per cent The inspectors believe that in
the years he has been carrying this work he has raked in
of between 100000 and $250000
In his conversation with him, Inspector Mayhem asked
Jacoby to give them the of single with which
he had carried his agreement but all he could obtain was
the assertion from Jacoby that his properly fulfilling his
bargains Among his correspondence found file deal
ing with company at Tacoma Wash which illustrates the
course OF all the investment bankers DEALS the inspectors
On January % 1909 he wrote to this western firm to say
that ne was position to quickly capital for the de
eopment of coal and mineral lands and that $3.50 would be
the preliminary cost of organization and per cent his
mission on sales.
On February 1909 Jacoby advised that the company b,
capitalized for $5OOOO 100000 being cent cumulative
preferred shares and the other 100000 stock By
this time he had raised his fee $780, for which he promised
organize and incorporate the company and furnish the
cessry printed material advertisements, ETC. On February
3 he wrote suggesting that after his clients seemed
teresed in their railroad than their coal proposition and he
would be willing to organize that on the terms
few days later he wrote stating that survey quite
for the organization of the company and April
% he acknowledged receipt of $500 for the railroad
The certificate of incorporation forwarded to Tacoma
May q and the prospectus July On July Jacoby pro
essed himself ready push the sales of stock and July
he wrote 81 am in hopes of soon getting returns
Apparently he did not for September B. Jacoby wrote:
Il certainly expected to sell stock before this and then
the collapse On February 90 1910 Jacoby wrote to
lis disappointed clients:
81 have been unable to sell any of your stock and would
ike hear how much you have sold yourselves New York
Mining Age.