The Washington herald., 1922-09-25
Vctimized by Agencies of
Baltimore Firms Now
. In Receivers Hands.
OPERATIONS Barred
BY INVESTIGATION
Detective Asks Officials
Here to Help Find the
Guilty Parties.

The investigation in Baltimore of
blind pools" following the crash
'of a number of so-called invest
ment firms in that city. has re-
suited in the disclosure that thous-
ands and thousands of dollars have
been lost by Washington investors
who paid their money into branch
agencies OF those firms here.
Raymond +. Kennedy. chief Of
the Kennedy Secret Service of Bal-
timore. placed in charge Of the
investigation. was in this city last
night to ask the cooperation of
Washington officials in bringing to
light and to justice those guilty of
Illegal operations in the District
branches In Various Cities.
According to Kennedy, these
pools" are of well-nigh nation
wide scope. those tin Baltimore be-
ing branches of houses in New York
other agencies. all of which he
claims will be shown to h. con-
nected were maintained in Roches-
ter. Buffalo. Syracuse and other
Eastern cities. The agencies in
Washington. his investigations have
disclosed. were soperated as sub
agencies of tho Baltimore branches.
Names Of Washington investors
who were drawn into the purcha Sc
of pool holdings by the promises
of biG returns on their investments
were listed as suckers" by the
stock promoters. and their names
passed from pool to pool with
tho result that great number Of
them were sold wildcat oil mine
and development stocks. Kennedy
said.
Now In Receivers Hands.
u is charged all of these COM
rauies now in the hands of rcceiv-
~rs in Baltimore and New York,
were started and operated by three
men. Austin VI. Montgomery. Joseph
Jardinc Macdonald and w SAM
uCi Harris
Montgomery and Macdonald are
said I" have started firm for the
rehabilitation pf firms losing money
AVID brcadened out into tho sale of
stock. organizing manufacturing
finn here in April 1920. in which
large amount Of stock was sold.
Montgomery was arrested last
iHuFSudN III tsdili m'fe on a M
York warrant charging him with
using the mails t" defraud and is
being held IN Baltimore in default
"f $500 pail. The other two m"u
have been Indicted on SIMILAR
charges. according to Mr.. Kennedy.
John u Berryman. Of New York
is said to have organized in this city
the Fidelity Finance Company, Sic
~
and his wife ard Harris lived at
the Nvondalc apartments. 1884 /
street northwest. from that Ia'e
to July.
Berry man sued for $4,000.
SerrynIan recently was served
papers in Baltimore in d civil suit
instituted by Washington woman.
According T." her bill "f complaint
he told h"r he would personally
make good tb, 5000 she invested
with Il pool" agency here should
thai agency L" to the wall.
Another agent widely known in
Washington was Winthrop Smi n.
head of Winthrop Smith and Corn
'pany. Smith. alias w. q. Smith. jr.
aud alias William Smith. recently
was arrested in New York. together
charges Of using the mails to de-
fraud Both are now out on bail.
Investigations Continue.
Although the recciverships were
ordered ON September 3 uImber
of WdShirFtoniaus have been writ
ing To the Baltimore offices q: these
firms requc sting information as 20
the present status of their invest
mentS.
Kennedy believes number OF
firms resolved themselves into @n
endless chain. involving investors
deeper and deeper. He believes
some branches of this organization
have wcathered tn storm thus fa-
under other names. The postal au-
thorities. the office of the State :
Attorney at Baltimore and others
are investigating this phase of thu
matter.
I;csidcs IN" Fidelity and Smith
companies. the firms that went to
the wall following a campaign OF
publicity in Baltimore and New
York were the Community Finance
company, the National Operating
Company and Morris VI. Wolf and
Company