The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-07-10
Treasury Department Ex-
poses Trick to SWindle
Security Owners
PROSPECTUS OFFERED
HOPE OF BIG PROFITS
Claimed to Make Exchange of $4,000 of
Liberty Bonds for Shares Worth
Ss,4s6-Actual Value of Stock Of
fered Not Told by Officer.

WASHINGTON, July lo-A new
scheme to separate patriotic purchasers
from their Liberty bond holdings that the
government has urged them to keep has
been exposed by the treasury department
1t is one of many such instances that come
up despite all warnings.
In an official statement the department
declares "or'e of the most fragrant recent
cases is that of a man signing himself
Sanford Holmes, 81 Wall street, New
York"
Mr.. Holmes, according to a statement
issued by the treasury department, through
a circular letter sought the cooperation of
bankers in inducing Liberty bond owners
to trade their government securities for
well known stock According to the
treasury officials Mr.. Holmes pointed out
that such an exchange would greatly in
crease the returns to the investor, but ig-
nored the fact that execution of his plans
would yield him enormous profits and place
in the hands OF the owners of Liberty
bonds another investment of very much
less value.
As means of salving the conseiences
of his proposed confederates,' says the
statement, Mr. Holmes declared that in
relieving the people of their bonds they
| would really be playing the part of good
Samaritans. If they did not unselfshy
induce rural bondholders to exchange
their government securities for something
else fire insurance and other smooth
| tongued stock statesmen would attend t
| it, he con6ded
The alluring book value OF the stocl
| which Mr.. Holmes aimed to exchange
was the hook on which he attempted tt
catch holders Of Liberty bonds In
| circular letter dated May q, 1918, sen
broadcast to banks and addressed partic
ularly to the president, vce-president oil
cashier Mr. Holmes offered twenty
shares of stock, book value, 1885, fol
$4,000 in Liberty bonds of any issue. Fig
uring on the basis of an annual 10 per cen
return oasthe stock and 1 per cent on Lib
erty bonds, Mr. Holmes declared the hold
| er of twenty-one shares OF the stool
would receive 500 more year than tn
holder of $4,000 in Liberty bonds.
''One very important thing that Mr.
%, the closing day for his offer, twenty
one shares of the stock he mentione'
were worth, including brokerage, g, 354
l63 on the New York Stock Exchange
while the amount of Liberty bonds 70
which he proposed to trade this numbe
of shares of stock have been sold 70
not less than $3.50 He also neglecte
to point out that his profit by such
deal as he proposed would be 1883,
while the regular commission on rel
utable stock exchange for such tram
= action would be 1923.
l Mr. Holmes generously offered con
e mission of 500 to bankers on each sue
transaction which they helped him PIT
= through Patriotic bankers, howeve
$ who are cooperating with the treasu
: department in seeking to induce peop
] to hold their bonds, not only decline
/ to aid Mr.. Holmes in his scheme, b.
i also notified the treasury departures
d of it.
y Owners of Liberty bonds are warn,
r to deal only with reliable persons
Y transactions of any kind in which the
IS bonds are concerned.