Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-12-11

insurance deal AZ that time they bad
ofiices IN tho Drexei Building.
HOW COMPANY OPERATED
In explaining the workings OF the com.
pany. Mr.. Smith said
The alleged swindiers made their first
haul after getting a list OF ths stock
holders of the International Lumbar
and Development Company, which waH
then IN litigation before iis Hmash-up.
Nevertheless, At that time the Inter
national Lumber stock had n certain
market value Many OF tho atookhold-
era were Induced TO exchange their
lumber stock FOR worthless stock in the
new International Gas and Electric
Company. After this lumber stock had
passed into tho hands Of the alleged
awindlers they sold Il NJ once and
realised from between $4,000 10
$4,000 on the deal In cnsh.
This cash. Mr.. Smith said. Fayo tho men
tho start they needed They at onco de.
olared dividends on their own stock which
they had sold.
Then, according 20 Mr.. smith, the com.
pany began 20 branch out In imitation al.
most Of the International iumbermen. they
acquired so-callsd Ess plants In every sec.
ton OF the country. Among their franchises
wero
Tho Concord Gas Company. OF Concord.
N. g. the Syracuse Suburban Gas Com.
pany. OF East Syracuse, N. v: the CASTOR
County Gas Company, Of oRa-onia, N. g..
tho Georgetown Railway and Light Com
pany, OF Georgetown. g. c., and the South .
ern oas and Electric Company.
These franchises wsre all bought by tho
alleged swindlera as individuals, who sold
them TO the company
ORGANIZED BANK
Affairs Of the company progperod IN
such an extent" Mr.. Smith naid "thnt they
decided 10 organise n banking frm. This
was done and tho banking firm was known
as Bachman a Co. which had offices first
In tho Morris Building and then In tho Stock
Exchange building in this city"
According 10 Mr.. Smith. the chief mem
bers OF tho banking nrm wcro Eachmnn aud
Hayden
Tho name Of tho banking firm, postal
inspectors said, was we'll chosen. slnce many
OF the investors miBtook II for H. T.. Bach
man Co. bankers Of 1919 Chestnut
street firm with which II had absolutely
no connection. OF course,
Both tho suites OF offices occupied by tho
International Gas and Electric Company
and BachmAn 4 Co. were palAtial. Tho
doskB. rugs, and other Office parAphcrnaIia
were OF tho finest grade and most expen-
Blve The look OF prosperity was their
stock In trade. Mr.. Smith explained.
IN n nutshell" ho said "all they needed
were the largo wicker baskets used by the
Story cotton Bwlndlers to gather In the
dsluge OF money which swamped their Of
iccs every day"
EASY STOCK SALE
THE company soon found itself the re-
ceplent OF steady flow OF money" Mr..
Smith explained. News of how the COM
pany was prospering spread among the
unwary, with the result that demapns FOR
lta stock Increased. Tho prospects outlined
by the circulars OF tho International Gas
and Electric Company were golden and
many could be found 20 fRll.'
samuel r. Jarret, ninety-three-year-
old resident OF Jefrersonvlllc, Pa. sacrificed
nnvingH he had accumulated during his life
time to buy tho Internationar stock.
"Ono woman In Reading was turned out
Of her home after having mortgaged II to
buy more OF tho stock. Homes were mort
gagged right and left TO buy this stock.
Nevertheless tho arch high nnanciors
were not lacking In nerve. They offered In
Bomo cases to take prospective stock buyers
South TO look over the plants OF the com-
pany. In two cases officers OF the Inter-
national said the company owned proper
ties on which II only had an option
When money kept OH pouring In tho
company went one Htep farther and had
It's own banlt-the Bank of Independence
which went into the hands OF n receiver
along with the others In 1915.
True, that bank paid dollar for dollar