The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1945-10-10

On trial IN teueral court here DC
tober % will be four Florida stool
promoters, indicted in 1912 for al
ICED use of the mails to defraud =
last nine Wilmington and South
eastern North Carolina holders O
Tide Water Power, preferred stock
Defendants, all in federal custo
dy or under bond, are:
Frank J. Ryan, president of III,
Research and Investment Compa
ny, Tampa, Fla, and of the Ryan
Florida corporation, Tampa;
James B. Kent, st. Louis, Mo.
former salesman for Ryaf's con
Germs;
Dumas I. Martin, Tampa, an
other salesman;
Phillip R. o sborne, TAMPA
salesman for the Ryan companies
Ryan, currently is under deten
ton at the Federal Medical cen
ter, Springfield, Mo. Kent, Martin
and Osborne are at liberty unde,
$1,000 bond each, federal record.
show.
Whiskey Receipts
Indicted in true bill returned
in September, 1912, by a fedora,
Grand jury in session at the Fay
etteville division of the Eastern
North Carolina district, the de-
PENDANTS are charged on 10 counts
Of using the mails to defraud, all
counts growing out of exchange Of
Tide Water Power preferred fol
whiskey warehouse receipts of the
Cummins' Distilleries, Anterior.
vile, KY.
Judge Don Gillim, presiding
fudge of the Eastern district, will
be on the bench when the trial
is called. Charles F. Rouse ano
Chauncey H. Leggett, assistants tc
District Attorney j. o. Carr, will
prosecute for the government.
The trial originally was SEIZED.
uled for the April session of court,
but was postponed for the reason
that Ryan was declared physically
unable to be in court.
The stock-exchange deals. al
legged fraudulent by the govern
ment, took place over a one-year
period beginning in July, 1889,
when, tn e indictment alleges,
RYAN and Kent induced more than
score of holders of Tide Water
Power company stock - all small
shareholders - to yield up their
utility certificates in exchange for
warehouse receipts of the Com
Minis distilleries.
The indictment further alleges
Ryan and his associates practiced
the so called cooper cent rack
et:" a scheme whereby several of
those who exchanged their TWP
for whiskey receipts were induced
into giving up the latter on the
alleged promise of receiving rich
dividends and new issue of Com
Minis receipts.
Fraudulent use Of the mails &C.
Cured. the government alleges.
when the Research and Invest
ment company mailed copies of
insurance pr m u M covering
whiskey stored in one of the Cum
Minis warehouses. The insurance
premiums, according to the gov
ernnent's charge, were based on
exorbinant valuation of the whis-
key.
Specified in the true bill as vic
tins of the allegedly fraudulent
operations were the following in
dividuals, to t h er with the
amount of TWP stock exchanged
by each for receipts on stipulated
barrels of whiskey:
Ashford L. McNorton, Al South
Sixth street, Wilmington, 81 shares
of TWP for receipts on 16 barrels
of whiskey;
Mrs. Annie May Middleton, SOC
Wrightsville turnpike road, five
shares of TWP for five barrels. of
whiskey;
D. c. Marshall, 708 Cherry ave-
nue., five shares of TWP for five
barrels of Whiskey;
Maarten Swart, CastleHaynes' "A
shares of TWP for A barrels OF
whiskey;
Ruby Swart, Castle Haynes, Is
shares of TWP for Is barrels OF
whiskey;
Montgomery G. and Maggie
Mae Green, Cerro Gordo, Column
bus county, 10 shares of TWP for
eight barrels of whiskey
Gordon A. West, Warsaw, II