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.
[Illustration: 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.
$300,000,000 CAPITAL.
The book of the Central State Underwriting and Guarantee corporation
had promoted 300 corporations and companies which were capitalized at
$300,000,000. Stock bonds were issued which was guaranteed by this
company. This company further agreed to sell these bonds and stocks to
raise the money to financier these companies.
The complaint was made by the Compensating Pipe Organ Company, through
C. V. Wisner. The firm is located at Battle Creek, Mich.
W. H. Todd & Co. was employed by the Pipe Organ Company to make a bond
issue of $150,000. The brokerage firm, he said, demanded a 1 per cent
deposit, amounting to $1,500.
This was paid, according to Wisner's complaint, and Todd & Company
undertook to deposit the money with another underwriting company.
Then, he asserts, the bond issue was never made, and Todd & Company
failed to repay the $1,500.
The firm conducts a banking, brokerage and underwriting business at
room 803, 112 Dearborn street.