Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-09-18
TRY PROMOTERS
ON FRAUD CHARGE
u. S. Alleges Investment
Brokers Sold Worthless
Gas and Electric Stock
DUNKARDS THEIR VICTIMS

clawsou Bachman, of East johnson
avenue. and Amos II. Nissley, Of Steelton,
Pa. are on trial today before Judge Dicli-
nson, IN Federal court, accused Of fraud.
The three men were members of the firm OF
Bachman & Co. investment brokers, and
promoters OF tho International Gas and
Electric COMPANY, a defunct Delaware cor
poration. II is alleged they obtained large
sums by the sale OF worthless stock Of the
corporation and several subsidiaries, which
had a face value of several thousand dol
larr.
Bachman & CO.. whose members are now
on trial had no connection whatever with
tho banking firm of II. +. Bachman & CO..
1912 Chestnut street.
Tho defendants owned and controlled a
majority Of the stock of the International
Gas aud Electric Company. were its nnan-
clal agents and were in control Of seven
subsidiary gas electric. street railway and
water works companies.
In allurinE literature, II is alleged, they
foistcd the stock of the International Com
pany upon the public. representing that
all the subsidiaries were in active operation
and earning large profits Prospective sub
sCrlhers TO the stock wero guaranteed six
per cent, dividend on their Investment, and
so allurIug was the bait that many poor
people. it is declared. placed their money
in the stock, Dividends were paid promptly,
but instead OF these coming from the
earnings of the companies. according TO tho
Governments charges. they were paid out OF
the capital received for otheS stock. AS n
matter Of fact, declared Assistant United
States District Attorney Harvey TO the
jury, not ono of the companies ever earned
cent Of profits, and only one of them ever
earned its operating expenses. All that the
International Gas and Electric COMPANY
ever actually had to show for its subsidl-
aries was unsold options and franchises to
operate.
BY series Of manipulations. Bachman
and his co-defendants, comprising the firm
of Bachman & Co, received all of the COM
mon stock of the International Gas and
Electric Company of a par value of $780,
000, and $4,000 in preferred stock In en-
change for franchise TO operate a street
railway in Georgetown. y. C. Only the
common stock had voting power. so that
Bachman and his associates had full control
of the company. Later OIL they acquired, In
exchange for options and franchises, nearly
all of the preferred stock of the Interna-
tional Company, and sold it on the repre-
sentation that the subsidiaries were earn
ing large profits.
During the five years the scheme was in
progress, from 1911 to 1915. the three men
received nearly all of the 81 ,5un noo capital
stock OF the International COMPANY and
during that time paid out cash dividends
amounting to about $4,000, and a stock
dividend Of about $4,000, and the balance
they had for themselves
Numbered among their alleged victims
were Dunkards and Mennonites OF Lancas-
ter County.
Following the finding of an indictment
by tho Federal Grand Jury, December .
last, Hayden and Nissley surrendered to the
authorities, but Bachman disappeared.
After a search of five months he was To-
Gated In Canada and by a ruse of former
Postal Inspector Frank W. Smith. now at
tached to District Attorney Kanes office
with an official designation of special ex-
pert assistant Bachman was put over the
border in New York State, where he was
arrested and brought to this city for trial
Since then all three defendants have been
out on bail.