“Capture Promoter; $1,300,000 Stock Loss.” New York Times, August 12, 1910, pages 1-2.

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CAPTURE PROMOTER; $1,300,000 STOCK LOSS

W. T. Wintemute Accused by Lady Tankerville of Swindling Her in a Mining Deal.

WARSZAWIAK HIS AGENT

Deposed Missionary Handled London End of Scheme — Wintemute Ready to Sail for Europe When Arrested.

Post Office Inspectors and Headquarters detectives made a raid yesterday on the offices of William T. Wintemute, 17 Battery Place, accused of using the mails to project a mining stock deal which is held to be fraudulent. Wintemute is credited with having made about $1,300,000 in the last ten years. He was arrested just on the eve of a trip to Europe, ostensibly to establish European branches for his enterprises, but the Post Office authorities believe really to leave this country.

Among the half ton of mining stock and prospectuses seized and carted off to Headquarters were letters which show that one of Wintemute's London agents was Hermann Warszawiak, who went into bankruptcy after obtaining large subscriptions for his paper, The Jewish Christian, and a mission for converting Jews to Christianity. Warszawiak's dismissal from the Presbyterian Church after conviction of public gambling and immoral character while applying for ordination as a Presbyterian minister and his subsequent reinstatement made him a conspicuous figure in the Presbyterian Church throughout the world in the latter nineties.

Among those whom Warszawiak interested in Wintemute's Gold Run Mine and Tunnel Company in London were Lady Tankerville and Miss Henrietta Elout of Glendale, Tunbridge Wells, England, who took $45,000 of the stock. Their suspicions were aroused when Wintemute insisted on keeping £500 ($2,500) they had sent him by mistake, and allotting them 2,500 more shares of stock. The authorities have in their possession letters written by Wintemute attempting to persuade the women to keep the stock and not ask for their money back.

Wintemute Taken by Surprise.

Chief Inspector W. W. Dickson of the Post Office Department, Inspectors E. L. Kincaid and T. M. Ready, and Headquarters Detectives Wilber and Talp participated in the raid. They had a warrant from United States Commissioner Shields. Their arrival was a great surprise to Wintemute, who made a vigorous protest against the seizure of his papers. He sent for his lawyer, Joseph M. Davis, when he arrived at Police Headquarters, and wanted to give bail right away. He was informed that he would have to wait until this morning, when he will be arraigned before Commissioner Shields.

Wintemute begged that the news of his arrest be kept from the reporters.

“This will ruin me. I am an innocent man. This will kill my wife.”

Wintemute said he lived at 133 Hobart Street, Summit, N. J. The detectives said his home there was a mansion. Wintemute gave his age as 39 years, and said he was a banker by profession. The Post Office authorities have been collecting evidence against him for over a year. There are 700 complaints against him, they said.

The Gold Run Mine and Tunnel Company, of which Wintemute is the Eastern representative, is an Arizona corporation, capitalized at $3,000,000. According to Wintemute's prospectuses its officers are E. A. Austin of Boulder. Col., President; H. J. Burgheim of Boulder. Vice President; L. M. Sawyer of Boulder, Treasurer. S. V. Tiffany. formerly of Brooklyn and now of Colorado Springs, Col., is mentioned as the company's counsel and its secretary.

Stock at 5 Cents a Share.

Among the seized documents is an agreement between the company and Wintemute by which he was empowered to sell the stock of the company at 5 cents per share, or as much more as he could get. Its par value was $100 per share. The authorities say he sold no shares lower than 25 cents per share, and many shares at $1 a share. Wintemute and Tiffany, the authorities say, obtained control of the company a year ago, and since that time there is no record that Wintemute made any accounting to the company of his sales of stock. He had the stock books of the company in his safe and the certificates all ready to be marketed done up in bales about his office.

One of the complainants against him, John A. Callicott of Boston, turned over to the Post Office Department, a letter from Wintemute. In this letter Wintemute told Callicott that there had been recently taken from the Gold Run mine ore which assayed $20 a pound, or about $40,000 a ton. The Post Office Inspectors said last night that at the time this letter was written the structures of the mine had been destroyed by fire and have not been replaced since.

After Warszawiak had obtained $45,000 from Miss Elout and Lady Tankerville he returned to the United States. By some mistake he had received $2,500 too much. Wintemute promptly sent the women stock certlficates to cover this amount at the rate he was then selling them. The women wrote to Warszawiak for an explanation, but he did not answer. Wintemute, however, wrote them several letters, which showed such a disposition to retain the money that the Englishwomen put the matter in the hands of lawyers. One of Wintemute's letters to Miss Elout explained that Warszawlak was out of town, and said:

Urged to Take the Stock.

I am aware that sometimes a misunderstanding engenders distrust unjustly, and consequently might mislead to misjudge the motive which prompted me at Mr. Warszawiak's suggestion to grant you the additional 2,500 shares. But let me assure you, Miss Elout, that but for the urgent appeal of Mr. Warszawiak, in view of the dividends which are imminent, you could not possibly have secured this allotment.

In this letter he advised her to hold the stock till January of 1910, when he said that it would rise greatly in value. This failed to convince the women and they sent the stock certificate back. Wintemute returned it, saying that it had not been properly indorsed, and failed to refund the money. With the certificate Wintemute sent a letter which contained this passage:

In fact, I am willing to offer your stock after January for sale, and if I had known your wishes in the matter before paying for your stock to the company I would not have had the stock issued to you at all, but would have immediately refunded the money to you. You are probably aware that the company is not allowed according to law to buy back its own stock.

Wintemute went on to explain at great length that the Gold Run Mine and Tunnel Company was a “close corporation,” and that the women should consider themselves fortunate to have been let in on the ground floor. At the same time he was sending out circulars to a mailing list of 12,000, principally ministers and doctors, throughout the United States offering Gold Run stock in exchange for “worthless mining stock” if accompanied by 10 cents a share.

His “Straght in the Eye” Plea.

Quantities of these circulars were seized yesterday. They are ornamented with

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Wintemute's picture, and are printed in red ink. They are headed, “Straight in the Eye,” and read in part:

I am looking you staight in the eye when I say to you, “Exchange your worthless mining stock for Gold Run! Don't cringe or squirm or dodge my glance but look at me straight in the eye and tell me why you don't exchange your worthless stock for Gold Run at 10 cents a share.

George Craig of 124 Willoughby Street, Brooklyn, one of the investors in Wintemute's company, received one of the “Straight in the Eye” circulars and Immediately saw a great light. He brought the circular around to the Post Office authorities. The Post Office men said last night that Wintemute had sent more than 200 pieces of mail to each of the 12,000 names on his list.

The Post Office authorities gave out last night a list of enterprises which Wintemute has promoted. These include the Conchiula Gold Reef Mining Company, the Nevada Exploration Syndicate, the Redmond Mine, Milling, and Smelting Company of Sonora, Mexico; the Nevada Oil Company, the Founder's Pool, the Redmond Extension Mining Company, and the Peanut Cerec-Coffee Company. They said Wintemute operated in Wall Street in 1906 under the name of Norman W. McCloud & Co., with offices at 68 Wall Street. McCloud, they said, was a clerk of Wintemute.

Warszawiak's Career.

Warszawiak has also figured in the newspapers before as sales agent for Western stocks of a speculative character. This was in 1902, three years after his case had split the governing bodies of the Presbyterian Church into two warring factions. At that time Warszawiak flooded England with circulars and letters on behalf of the Texas Oil Pipe Line Company. He had not yet given up his mission for the conversion of Jews to Christianity at 182 Grand Street, in this city.