Evening journal., 1918-04-04
Gold DUST stock
PEDDLER IS HELD
Fifteen Teachers Swindled
by Scheme, New York
Prosecutor Declares
HUGE PROFITS
WE'RE PROMISED

NEW YORK, April A new tangled
gold washing machine 90 revolutionlze
,he mining industry was the principal
stock in trade OF the Associated Plati-
mum Cold Company, organized for ST.
100000 under the laws Of the state Of
Delaware. stock In which was sold but
never delivered IL is said-t0 fifteen
school teachers and other gullible per
sons hereaDOuls. This machine. Edw-
ward s. Brogsn, assistant district at
torney, says, was distinguished by the
fact that IL was such an out and out
fake.
Yesterday George McDernott Hob
lltzeil, OF No. 81 East Thirlieth street,
who Is said 20 have sWlndled the 10
school teachers, was arrested, charged
with larceny Another member of the
Associated Gold Platinum Company
Luclan Archer, was awaiting trial on a
similar charge until recently, when, IL
Is said, be skipped his bail
About June 10. 1917, Mr. Brogan says,
Archer prevailed upon A. +. Schneider,
connected with the Hotel Astor. to see a
demonstration OF the washing machine
at the Hotel Seymour. The invention
was explained by a man made up like
a typical Westerner." whatever that
Is, who had several bars of gold dust
TO give an impression of prosperity.
After being 10 the room scarcely Ave
minutes Schneider was surprised by
the Westerner's proposal that he accept
the position OF vlce-presldent In The
company. Schneider refused, and later
became suspicious when 70 was sug-
gested that he interest The proprietor
Of the Hotel AstOr. He had an expert
examine the machine. The expert. says
the prosecutor declared il an absolute
fraud.
Despite Schneider's refusal, he was
elected to the board Of directors it is
said. A prospectus claimed that The
company would clear S5,jOOOOO a year,
Mr.. BrOgan says The Wcslerner. he
says, obtained $4,000 from the sale oil
stock
Hobitzell at the Fifty-seyenth Street
Court yesterday said he took an option |
on 1900 shares Of the gold dust stock |
at 30 cents a share last November. and /
that he sold several thousand shares TO
school teachers. When they pressed
him for. delivery Of the certificates ne
put them off, he says, by explaining that
his firm was organizing a new COM
pany-the Associated Platinum and
Gold Company Of South Ameraca-and
that stock In this corporation would be
given TO them as soon as the proper ar
rangements could be made. The com
cern was supposed TO have rich mine
deposits in Colombia.
Accompanied by their wives, Hoblit-
zell and Archer visited Sayvllle, Patch-
0gue and Babylon several weeks ago
and made sufficient money to live com
fortably at the hotels there. From one
couple at a hotel In Sayyille. Messrs.
Hoblltzell and Archer obtained 81 800 in
cash and notes for $500 more, says Mr.. {
Brogan. But at Babylon they met vii
liam A. Delavern, formerly chief clerk
for Ennis * Stoppani, stock brokers, !
and a man Of wisdom.
Delavern did not care 90 buy any Of
the gold dust stock, but he acted as II |
he did When he had learned all about
the mine in Colombia and the gold
washing machine he transmitted his in /
formation to Leroy NJ. Young, Babylon's |
district attorney. Things occurred. Mr..
and Mrs. Hoblitzell packed their be-
longings and departed. saving they
would return shortly and pay their bill.
Then never did, Mr. Brogan contends.
Archer ordered breakfast at the hotel
on March % and when the waiter was
In the kitchen he slipped away. The
motorman on the car going 20 Patch
ogue, says Brogan, loaned Archer 10
cents with which TO pay his fare.