The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-12
BROKER Is HELD
ON STOCK DEAL;
$2S,7SOINC CASE
Frank d. Ryan Is Arrested
on Complaint of Firm
i'm Baltimore.
VICTIM GOES TO SWAMI
Order to Buy "Potts Canyon"
Filled, but Client Disap-
pears, Says Banker.

Frank d. Ryan. member of the
brokerage firm of J. NJ. Grant & Co.,
1882 Broadway, which let the public
in on Potts Canyon mining stock last
week and for a few days made it
look like an infant wonder on the curb,
was arrested last night in the Office of
District Attorney Swami. He is ac-
cused of having conspired to get $685.
$50 from b. Warren Corkran & Co.,
bankers and brokers of Baltimore. by
q stratagem so slick that even the
complainant cannot help smiling over
II.
The complaint was made by William
]. Bissell. Junior partner in the Bal
timore house. Ryan, who lives in the
Sonoma apartment house, 1880 Broad
way. was taken to the Old Slip police
station. Both he and his lawyer, A.
II. Goodman, protested that no law
had been violated. This Is the first
arrest in the attempt begun by the
District Attorney two weeks ago to
stop skyhooting operations in oil and
mining securities.
How the Arrest Was Made.
Bissell came to New York from Balti-
More on Saturday, and finding that
Potts Canyon. while still visible on
the map of Arizona, had vanished
from the Curb market. went to the Grim
inal Courts Building yesterday and told
hic story to Assistant District Attorney
Dooling. He was accompanied by L. b.
klaggett, a lawyer of Baltimore, and
Mr.. Everett of the New York law firm
OF Everett, Clarke & Benedict. 81 Wall
street. Ryan was later summoned to the
District Attorneys office and later in
the day placed under arrest by Detec-
tives Cuniff and Gilfillan by direction OF
the District Attorney.
Last Wednesday morning a well
dressed young man, short of stature,
round OF face. called at the offices of B.
Warren Corkran & Co., who conduct
one OF the oldest and most conservative
banks in Baltimore, and are members of
the Investment Bankers Association and
the Baltimore Stock Exchange. He in
troduced himself to Bissell, the junior
partner, as Thomas w. Brown, recently
a Captain OF the United States Army,
stationed in Washington, in the Ordnance
Department. He said he was going into
the automobile business in Baltimore,
ane what was on his mind at the mo-
ment was this, as Bissell tells the story
III w dsniIbtUH Sdpt- bTOWn Hdu
learned that the Government had agreed
to take the entire silver output of the
Potts Canyon Mining Company. The
contract was to be signed at 10 O'Clock
on the following Friday morning. As
soon as this was done the public would
know all about 1t and the price of the
stock would jump. So Capt. Brown
wanted to buy all the stock he could get
VI TO $4,000 shares before the deal was
contaminated. He was ready to pay
cash upon delivery OF the stock. He
produced a roll of 500 bills and paid
Bissell $500 on account as proof OF good
faith.
HE impressed me-" said Bissell with
the belief that he would purchase the
stock and meant what he said. He did
not talk like professional operator. He
said he was Baltimorean. but had a
New York accent, which he might have
got in the army. l think he would have
convinced any one of his sincerity. He
seemed like a man tremendously eager
to take advantage of a big opportunity
He said We must hurry, as in two day,
the stock would jump and he must buy
before Friday.
HE insisted upon immediate delivery
OF the certificates, as he expected t
make a quick sale at a large profit wher
the market advanced and must have tn,
certificates to deliver when the tim,
came. l told him / would see VIVA
could be done He stayed around tn,
office most of the day, frequently inquir
ing if we had made the purchase.
Sends an Order to Buy.
I'VE looked In the curb market quota
lions of the New York Times and foun,
that 5000 shares of Potts Canyon hat
been traded in on the previous day a
prices between 81 and So. We thel
wired our New York correspondent, F. NJ
Lockwood & Co. bankers and brokers o
81 Broadway, asking them to buy wha
Potts Canyon they could. On the fol
Lowing day Capt Brown telephoned us
already bought 5000 shares at the mar
ket price of about So 80 that the certifi
Gates would come through promptly an,
that he must be ready to pay cash
in all we bought 10000 shares o
Potts Canyon at prices ranging from 2 \
to 2as. They cost about $27.0 900, and o
course we had to pay cash for them. ]
was reported TO US that the stock ha
been withdrawn from the market. WheI
Capt. Brown heard this he exclaimed
Doggone 1t, the secret of the Govern
ments taking over the output has leake
out! There certainly has been a leak
However. I'll take the stock, of course
He said he would be around in the morn
Ing to pay the cash and get the certifl
Gates. He did not come in the mornin
and we haven't seen or heard from hir
since.
upon further Inquiry we found tina
the market for Potts Canyon had bee
manufactured. Mr. Klaggett and I cam
TO New York on Saturday and certai
Information we have obtained has bee
laid before the District Attorney"
Dooling soon learned that the rise an
fall of Potts Canyon had all been accom-
plished within a week. The promoters G
the stock were J. NJ. Grant & Co, VIII
had sent out a pamphlet stressing tn
assertion that Arizona mines had pre-
duced $200.O00.000 and advising the pub
lie to buy Potts Canyon and get thei
ehare.