Wildcats Give Good Reference.
Promoters of wildcat investment enterprises have used hundreds of names as references which they had not the shadow of right to use—calculating that persons credulous enough to be interested in the proposition would also be credulous enough to say, "These references will speak well enough for the enterprise, else their names would not be given out for this purpose," and to act without making any inquiries of them.
Again, some man of prominence and great faith may have been, at the start, a believer in the enterprise and willing to say, within certain limitations, that he believed the venture could be made a success if conducted according to certain plans and under given restrictions. This does not signify that he will continue to retain that confidence or that he is willing to be understood as giving the venture his unqualified endorsement, or to say to the public which respects his name and position:
"Come and share this enterprise with me; put your money into it, for it's a good thing."
Detective Wooldridge, who has examined many of these concerns, desires to place special emphasis upon the crafty use which these companies make of the names and services of reputable "trust" companies. He uses the word "services" because a trust company may execute a "trust" in connection with bonds, stocks, property or securities without really assuming any general financial or moral responsibility for those securities or without becoming a sponsor for them. In a word, the trust company may engage to act as an escrow agent to see that a certain technical transaction is completed, and nothing more. That means this: The trust company consents to hold the stakes between two parties, but without the slightest responsibility as to the value of those stakes or what may be done with them after the stipulations as to the conditions precedent to delivery have been fulfilled.
Because a trust company acts as the trustee of a certain bond issued there is no warrant for a prospective investor to feel that the resources of the trust company are in any sense behind these deeds as a guarantee of values.
Another word of caution: Whenever you see the name of an educator, a pastor or a popular politician, or any other leader having a hold on the sentiment of a community used in connection with an investment offering, look into it carefully and take no step until the person mentioned has been questioned directly by you.
[HUGE SWINDLES BARED.]
Officers of Four Underwriting and Guarantee Companies Arrested by Detective Clifton R. Wooldridge.
Charges Are Bogus Underwriting and Fraudulent Inspection of Properties.
All the officers of the four biggest underwriting and guarantee companies in the west, with headquarters in Chicago, were arrested. They were charged with having engineered the boldest and most comprehensive swindle ever exposed in this country.
GETT, RICH & CO. PROMOTERS OF "GOOD THINGS"
The following are the names of the men arrested for running The Central State Underwriting and Guarantee corporation room 1306, Tribune building:
W. H. Hulbert, H. B. Hudson, Francis Owings, M. J. Roughen, W. H. Todd, were arrested for running a confidence game. W. H. Todd jumped his bond and fled to St. Louis, Mo., where he was apprehended and brought back by Detective Wooldridge.