The Owosso times. (Owosso, Mich.) 1897-1926, 1913-03-14
APPS TRANSACTIONS.
Continued from first page.)

much like that of Tom Lawson's no.
torious Bay State Gas Co. 1t was Or
ganized for almost any purpose. 1t
could sell and buy anything, delve
into real estate transactions, deal In
franchises, in short, there was no
limit to it's operations. Ostensibly,
however, the company was to engage
in the life insurance business; organ
ize life insurance companies consoli-
date and amalgamate existing insur-
ance companies all over the country
and conduct operations of this kind
In every state of the union.
The only asset the General Foun-
ders Co. had, however, was a con-
tract with the Michigan State Life
Insurance Co., covering all territory,
exclusive of the state of Michigan.
Thus the Fred Apps & Co. had the
exclusive right to sell insurance for
the company mentioned in Michigan
and the General Founders Co. for
the company outside of the state.
There were 100000 shares of the
General Founders Co. or this num-
Der Apps took $4,000 for himself.
Now while it is true that the General
Founders Co. did open a few dinky
officers here and there and did write
few policies for the Michigan State
Life Insurance Co., the apparent OBJ
ject of the enterprise was to sell
stock. 1t was essentially a stock
selling concern. And by means of al
Turing prospectuses and other litera-
ture considerable stock was sold all
over the state and a number of prom
inent people were interested.
Fox Resigns
Some even became officers of the
new enterprise; for example: Henry
j.. Fox, cashier OF the Central Saw
ings bank of this city, who acted as
treasurer. But it took only short
time for Mr.. Fox to size up .4e
Subsequently Apps resigned the
presidency of the General Founders
Co. Dividends ranging from 1 to 16
per cent were paid. These dividends
were fictitious, pure and simple,
and paid from the sale of stock.
The General Security Co. was or
ganized by Apps in Chicago as a cor
poration to sell the stock of the Gen.
eral Founders Co. The word "se-
curity" having been prohibited by the
Illinois state authorities, tle name of
the firm was changed into Allan
Brown & Co. Allan Brown is a
brother of Mrs. Grove-Apps. There
Is an end to everything, and when
there was no more stock to be sold
the payment of dividends to the
stockholders ceased. On Jan. 20 last
jones resigned as president of tle
whole scheme, when he resigned. In
addition to the regular officers,
there was small cotery of people,
such as Apps himself Mrs. Grove,
Arthur Jones, Clarence A. Look, a
beardless youth who is about 20
years old and acted as Apps private
secretary, who comprised the board
OF directors. These directors ap-
tors" to consult with the board OF
directors" But this advisory board
never met, and the inference is OBJ
vious that the existence of this
whole advisory board was a scheme
to attract the attention of investors
and facilitate the sale of stock,
scheme, of which tle members of
this board, Of course, were wholly
ignorant
1t is needless to follow the meteo-
ric course of the General Founders
Co.
President Of Both
Apps was president of the Fred
Apps G. Co. He was also president
of the General Founders Co. The
latter concern was merrily selling its
stock. When the first 100000 were
realized Apps, as president of the
General Founders Co., insisted that
tais money should be invested. And
as an investment he bought from
as president of the Fred Apps
e. Co. $4,000 worth of stock in the |
Fred Apps & Co., whereby the Gener-
al Founders Co. secured the control |
ling interest in the Fred Apps e Co. |
the only asset of which consisted of |
It's state contract with the Michigan |
State Life Insurance Co.
General Founders Co., and with the |
default OF the first of this years divi- |
lends the bubble burst. The whole |
scheme exploded and collapsed. At |
present Howard G. Wade, who had
been connected with the General
Founders Co. for three years, is en-
ieavoring to disentangle the affairs
If the General Founders Co. and |
Fred Apps & Co. He has associated
himself with Mr.. Harrison Geer in
behalf Of the former concern and
Mr.. James D. May for the latter firm.
Reason for Flight
OF course, the reason for Apps
light from the city Is plain. Apps
an be held liable for the stockhold-
RS of the General Founders Co. for
he disappearance of the money.
Apps still held a large block of stock
# the Michigan State Life Insur-
nee Co. The stockholders natur-