Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-09-16

1eNaE Rapids, sept. Id ellOWnS
close on the heels OF the Indictment
and issuance OF warrants in Benton
county for L. A. Cole and ". T
Browning. who sold much stock in the
Iowa Mercantile Company, another
warrant vas Issued here Friday for
Cole and now is in the hands of an Of
ficer for serving.
Ihe local county officers are reticent
regarding the warrant Tor Cole, but ii
is believed TO be the result OF AN intor-
nation fled here Friday.
Were Here Wednesday.
Neither Cole nor Browning nave been
seen here since Wednesday. on We'd
nesday night they had Il nnal confer
ence with Tom Wilder, former man
ager OF the Mercantile Company store,
and on leaving they assured him they
were with him" Wilder believes they
viii be here when their case is called
IN the district court September 20.
Meanwhile the Benton county sheriff
is anxious to be notified at once If
either OF the men are seen by those
who know them in the districts where
they sold stock. TN glaQly pay all
expenses OF getting woru, and perhaps
a little else" he added.
Indictments We're returned against
Cole and Browning Thursday by the
Benton county grand jury on one
charge of obtaining money under false
~pretenses."
Wanted on One Count.
ThE inHin-T-a-- nT colo u nd Brown
!rg by the grand jury is the resul, OF
an investigation which has been going
on for several days. When the bottom
Eel! / OF the scheme II tie Benton
court. investors feared they had been
swindled the matter was Immediately
taken up by the grand jury which was
then in session. Thursday the grand
jury examined several witnesses in the
cas- and altno there are several counts
against the men the indictments were
only returned on one charge.
Cleared For Action.
Ever since the company went into
the hands of the receiver and the
financial condition vas aired the men of
Benton county have been preparing
their case. Last Saturday a delega-
ton from near Shellsburg vent to Vim
ton to consult their attorneys and the
county attorney. They were advised
to wait until after the hearing at Ma
rion last Monday and Tuesday.
That Cole and Browning sold their
stock like hot cakes around Shells
burg n vicinity, is evident from the
fact their total sales in this territory
are said. by a S~hellsburg bank official,
to have amounted to 10000.
Approximately all OF the stock sold
was class b stock and the purchasers
believed they We're getting in on a new
packing plant which was soon TO be
erected in Cedar Rapids by the Iowa
Mercantile Company. -
One thing which aroused the sus-
picions of h banks was that all of
the notes were made payable to L. A.
Cole. When Cole was questioned about
this he gave an evaSIve answer TO the
effect that the laws Of Iowa forbade a
corporation within q corporation, con-
sequently all of the notes for stock in
the new packing house must he in his
name instead of in the name of the
Iowa Mercantile Company.
All OF the stock sold around Shells
Jul = \ - bI' iHNNlllS Jus PAoP-
os!tion, altho the certificates called
merely for stock in the Iowa Mercan-
tile Company. Previous to this last
sale of stock there were seventy per
sons holding stock in the Iowa Mer-
camille Company proper. These per
sons are said to have been told that
if they bought the new stock they
could turn their old stock in on a store
which the company was to build in
SheIIsburg and which would be ope-
rated the same as the Cedar Rapids
store.
One mar purchased 81 100 worth OF
the new stock. but the average pur-
chase amounted to about $1,000.
The banks OF S~hellsburg were sus-
picious Of Cole and Browning and their
operations and refused TO buy the
notes. altho many of them were from
some of the wealthiest farmers in
pa~tar rolrtv