Rensselaer Semi-Weekly Republican, Volume 37, Number 31, Rensselaer, Jasper County, 21 April 1905 — IT WAS A GIGANTIC SWINDLE. [ARTICLE]

IT WAS A GIGANTIC SWINDLE.

Wm. D. Owen, One Of Indiana’s Most Honored Citizens Denounced As A Colossal Robber. The pest-office department has issued a "fraud order r gainst the Übero Plantation Company, of Boston, and its oonnected companies. These are the oonoerns « which were originated and floated by Wm. D. Owen, formerly of Benton county, later of Logansport member of Congress for several terms from this 10th Indiana district, afterwards U. S. Commissioner of Immigration, Secretary of State in Indiana, and prominently talked of for Governor of the state.

He always had a great taste for luxurious living, traveling in gorgeous splendor, and for a general display of wealth, and that disposition has no doubt led to his downfall. He is now in Europe, but is said'to have unloaded all his Übero and similar now worthless stock on the public, or perhaps his best friends, before he left. The following acoount of these Übero schemes is given in a press dispatoh from Washington: Washington, D. C., April 17. — William D. Owen, former member of congress from Indiana, former secretary of state for Indiana, once a minister of the gospel, organizer and promoter of the Übero Plantation company of Indiana, the Mexican Coffee and Rubber company of Indiana, the Übero Plantation company of Boston, and the Consolidated Übero Plantation company, also of Boston has gone to Europe, and thousands of iuves'ors in the stooks and bonds of the companies are holding the sack. The saok empty, and the trusting publio is out anywhere from sl,000.000 to $3,000,000, These faots are set forth in a memorandum of the attorney general for the postoffioe department, accompanying a fraud order which was issued today against the two oonoerns.

It is also stated that Arthur W, Stedman and Frederick 0. Hood, two men prominent in Boston business and social circles, the former president and the latter vice president of the Consolidated Übero company, are likewise absent in Europe. Judgs U. Z. Wiley of Indiana, at present judge of the Indiana Appellate court, is named as treasurer of this company. The investigation conducted by the department disclosed one of the most gigantic and baldest frauds that has-been perpetrated in recent years. Owen is said to have been the prime mover in the entire swindle and presumably the ohief benafioiary. Frederiok E. Borges, another Indianian, waa Owen’s partner in' the deals. Borges, itjwas reported to the department, has a record for serving a tterm in the penitentiaries at Joliet and Pittsburg. There ia

little prospeot of any satisfaction lor the investors, as it is stated at the office of the of the attorney general for the postoffioe department that Owen and Borges undoubtedly acted on excellent legal advioe'in framing. their sohemes, and it is a question whether they oan be reaohed through civil or criminal aotion.

Owen embtrked in his Mexican plantation soheme shortly after retiring from the office of secretary o? state cf Indiana in 1898. Emooldaned by success, Owen and Borges next reorganized tbe Consolidated Übero Plantation company, issued bonds to the amount of $2,600,000, and sold both the bonds and etook on monthly payments. This company

was to develop 6,000 acres of Mexican lands,*wbioh it was to purchase tnrough the Tropical Securities company (Owen and Borges again), and from the Mexican Coffee and Rubber company, an Indiana concern, The latter company was capitalized at but $89,000, end the fraudulent character of the transaction is evidenced by the fact that the Consolidated company was to pay it $300,000 for property said to be worth not over $40,000 or $60,000. Of the 6,000 acres of 1and3,732 are still virgin forest, 1,087 are valueless, and only 1,235 have been planted. To sell the bonds and stocks representations were made and fulfilled that dividends would aoorne. immediately. The names of prom I inent men were widely heralded as officers and directors and Owen and Borges even went so far as to put a special brand of coffee on the market in packages labeled as the product cf the Consolidated company. Investors were urged to use "their own coffee,” Investigation proved not a grain of coffee had been produoed on the property.