The Central States Underwriting & Guarantee Company did a business commensurate with the costly environment. The books of the concern show that from February 1, 1903, to August 5, 1906, 643 corporations throughout the United States paid money to the Central States concern, and the aggregate amount paid was $340,000.
AT LAST!
Advertisements were placed in all the leading papers throughout the country, circulars were distributed broadcast with propositions that capital could be obtained for corporations and manufacturing enterprises by addressing this company.
The officers of corporations replying to these advertisements would be asked to call at the Chicago offices of the companies.
The brokers acquainted with the scheme would then introduce the corporation officials to alleged capitalists who represented they had available capital to finance business propositions, and would buy the underwritten stock, provided the corporation officers would have them underwritten by responsible guarantee companies.
It is asserted that these alleged capitalists would then advise that the work be done by the Central States Underwriting & Guarantee Company, the American Corporation & Securities Company, or the National Stock & Guarantee Company of San Francisco.
Scheme of the Company.
The brokers in the alleged fraudulent transactions would represent to the proposed victim that they would get no returns for their work unless they actually sold the stocks, and that they would be content with a commission of from one-half to 1 per cent on such stock as they sold. They assured the victims that there could be no doubt that the stock underwritten would be sold, as the capitalists to whom the victims had been introduced would be certain to buy them.