Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-12-12
:NISSLEY NOT YET
APPREHENDED BY
FEDERAL OFFICERS
Steelton Man Charged With
Conspiracy in Stock Deals
Still at Large


action had been taken before United
State Commissioner Leroy J. Wolfe,
against Amos Fl. Nissley. of Steelton,
charging the latter with conspiring to
defraud by using the mails.
According to dispatch from Phil
adelphia bail for Nissley has been set
at $1,000 and Post Office Inspector
Frank Wilbur Smith, of Philadelphia,
is to apprehend Nissley. The prelim-
mary case will probably be brought
before Commissioner Wolfe.
Nissley, it was understood. at noon
to-day was arranging with attorneys
concernings the case, and it is expect
ed that the formal action against him
will be completed late in the after
noon.
He is charged, according to indict-
ments by the Federal Grand Jury at
Philadelphia, under a charge of be-
ing implicated with Clawson Bach
man and Joseph T. Hayden, Philadel-
phia, in defrauding investors out of
more than S1,500,000 during the last
five years.
News of the indictments became
known yesterday during the bankrupt
cy proceedings against the Interna-
tional Gas and Electric Company.
At the Elite Shoe Repairing shop
to-day, 1t was said that MIR. Nissley is
no longer connected with that firm,
as was reported yesterday.
Inspector at Work Year
The indictments on Saturday at
Philadelphia were the result of one
years work by Inspector Smith. Bach
man and Hayden We're also said to be
interested in the Bay State Mutual
Life Insurance Company, which went
into the hands of the receiver several
years ago. Rumors were afloat then
that flyers in high finance had been
taken, but authorities did not molest
any of the officials.
Reports from Philadelphia increase
the figures of the frauds practiced on
residents in Dauphin and Lancaster
counties, and according to Inspector
Smith one million dollars had been
received through stock transactions.
Charges have also been made by the
postal inspector that the corporation
'kited" checks to the amount of $40,-
600 day and established the Bank of
Independence. in Logan, as a clear
ing house for their paper. This bank
was liquidated recently.
The International Gas and Electric
Company was chartered in September,
1911, under the laws of Delaware with
a capitalization of S1,500,000. Later
another corporation, the Southern Gas
Company, was chartered with 100000
capital stock. The post office author
tiles declare that this second corpor-
alton did not have a single dollar
of assets, but was used to sell stock
fraudulently when investors had be-
come wary of the financial methods of
the international Company.
Under it's charter the International
Gas and Electric Company was per-
m1ffad 'nnarntn construct
maintain" gas plants in various Sec
tions of the country. The directors
claimed to have control of q number
of subsidiary corporations, whose
stocks and bonds were as follows:
Georgetown Railway and Light
Company. Georgetown, S. c.; common
stock. S51,S75.
Georgetown Gas and Electric Com
pany, Georgetown, S. c.; 100000
common stock.
Southern Gas and Electric Com,
pany; common stock, 100000.
Concord Gas Company, Concord, N.
c.; common stock, $100,000 first
mortgage per cent. bonds, s24O, 900.
Castor County Gas Company, Gas
tonia, n. c.; common stock, S300,000;
first mortgage bonds, s225,000
Suburban Gas Company, East SYRIA
cuse, n. Y; common stock, $4,000;
6 per cent. gold notes, $4,000. (This
was connected with these enterprises
in any manner.
Another charge made by the au-
thorities is that blue stock" had been
1ssued by the International Company
in companies which had no assets. 1t
is on this charge that Inspector
Smith obtained the indictment.
In Steelton, Oberlin and other near
by places where the stock had been
sold by Nissley, according to reports
to-day, it is claimed that Nissley him
self lost money when the crash came
some time ago. Many stories have
been circulated about alleged methods
of Nissley in selling stock.
Among the persons who have lost
money because of the crash are a
large number of people. who. it is
said, acted on Nissley's advice and
bought stock as a profitable invest
ment for the savings of lifetime. A
number of more prominent people,
too, have been defrauded, it Is alleged,
some of them losing thousands OF
dollars.
Little was said in Steelton for some
time about the collapse of the COM
pany, although it was generally known
by the majority of residents. Nothing
has been done, recently, 1t was said
to-day, to start roceedings with
view of getting any cf the money
back.