The Bismarck Tribune

PAGE EIGHT

MINOT STOCK EXCHANGE BAIT FOR 'CON' GAME

Montana Rancher Swindled Out of $2,800 After "Investing," He Says

SADDER BUT WISER

Minot, N. D., Dec. 16.—One of the most unusual and interesting confidence stories was laid bare in this city last week when Einar Veseth, a young rancher residing near Malta, Mont., lost $2,800.00 after being persuaded to invest in copper stock on a mythical Minot stock exchange.

The swindle, one of the most cleverly planned and executed frauds of its kind ever perpetrated in Minot when told, rivals in interest the often recited tales of the sale to unsuspecting persons of the Chicago post office, the Brooklyn bridge or a contract to paint the Golden Gate of California.

Chance to Make Money

The two swindlers, one giving the name of Milton and representing himself as a representative of the J. P. Morgan company of New York city and the other presenting name of McDonald, a close friend of Milton, "worked on Veseth for nearly a week before they succeeded in securing his confidence and the $2,500. The young Montanan was returning from a visit to his former home in Norway and had stopped at a hotel in Minot for a short visit in this city when he met the two men who immediately opened up a conversation concerning the possibilities of making a fortune on the Minot stock exchange, an institution which does not and never has existed, Veseth has since learned.

To Veseth, the information was imparted that Milton, as a representative of New York "big business," was in Minot to "bust" up the Minot exchange. He had just come to Minot from Great Falls, Mont., where he had broken up an exchange in that city, Milton said. Both Milton and McDonald had purchased copper stock on the Minot exchange, Veseth was told, and copper stock was soaring far above par, and the prospects were that they were due to make an immense profit.

$500 Per Week

"Don't you want to invest in a little copper stock, and likewise make a cleanup?" the two newly found friends interrogated. Veseth shook his head in the negative way, declaring that he had only $500 and consequently couldn't invest such a small sum.

But Veseth's two kind friends did not despair. When Veseth couldn't invest, they decided to sell their stock at a big margin of profit, and McDonald left the place of conference in the hotel and went to the exchange intending to sell out. Milton couldn't be seen around the exchange, it was explained, because he was in the city with the primary purpose in mind of breaking up the exchange, but had decided to make a little money on the side before bringing pressure to bear that would result in the wiping out of the exchange. He was receiving a salary of $500 a week from the New York company for whom he was working, Milton said.

Presently McDonald returned conveying the information that the stock exchange officials had declined to pay the quoted value of the stock held by he and Milton unless McDonald could produce $10,000 equaling the value of the stock to show stock exchange officials that in event copper quotations had fallen the two stockholders would have been able to meet the losses.

"Invest!" Entire Sum

Then arose the question of how to raise the $10,000, because both McDonald and Milton were anxious to sell. Milton immediately dispatched a wire to his "Uncle Henry" in New York City, asking for $5,000 but a reply was received from "Aunt Mary" saying that "Uncle Henry" had gone to Mexico and had left no forwarding address. However, Milton's family succeeded in raising what purported to be $5,000 in currency, and McDonald secured a sum represented to be $2,200. Here Veseth yielded, after becoming thoroughly enthused over the prospect of making a fortune on copper stock, and from a Montana bank secured the $2,800 which he turned over to McDonald, who after a conference with Milton and Veseth, decided to invest the entire sum in more copper stock which was soaring at unprecedented price levels.

But two days later the crash came, the bottom dropped out of the copper market for some unexplained reason, and Milton and McDonald, as well as Veseth were wiped out of the prospect of making easy fortunes.

But as the three sat on a hotel bed, lamenting the ill fortune which had befallen them, Milton took it upon himself to console the disgruntled Veseth by informing him that he would make arrangements with the New York company to place the Montana man in charge of a stock exchange to be opened at Yakima, Wash. Veseth could easily regain what had been lost through the transaction on the Minot exchange, and the prospect of an easy fortune in addition was eloquently portrayed in words by the New York company's stock exchange wrecker.

Back Home To Ranch

Veseth, being tired of ranch life, consented to accept the Washington position, and left for Yakima, after being informed that information concerning the opening of the new exchange would be telegraphed to him.

Two days after arriving in Yakima, he received a telegram from Milton saying:

"Am leaving for Yakima. Await further instructions."

Veseth waited six days longer and then received another telegram, this one from Waco, Texas, signed by Milton and saying:

"Am following Uncle Henry into Mexico to get some money. Await further instructions."

Veseth waited and then finally began to lose confidence in the affair, and returned to Minot, hoping to find McDonald, but failing, reported his loss. He has returned to his Montana ranch, with only sad reminiscences of how he gambled on the mythical Minot stock exchange and lost his savings.