Ogden Daily Standard | 1914-04-07 | Page 1 | Seven Officials Are Sentenced

fficls are sentenced Former Members and Agents of Sterling Debenture Company Com-pany Given Term. USED MAILS TO DEFRAUD Alleged Discovery of Process to Make Yarn From Straw Lands Men in Prison. New York, N. Y., April 7. Seven former officers aud agents of the Sterling "Debenture company today re ceived prison sentences of from three to six years for using the United States malls to defraud investors In the stock of enterprises prompted by their corporation. In sending them to the, federal penitentiary at Atlanta, Atlan-ta, Federal Judge Anderson declared that although the defendants maintained main-tained that they were penniless, they had in fact made millions at the expense ex-pense of victims throughout the country. coun-try. The heaviest sentences, six years, were imposed on George H. Middle-brook Middle-brook of Chicago, first vice president; Frank Shumaker, a former president, and Henry H. H. Piatt, a minor officer. of-ficer. Made Yarn from Straw. Benjamin Mudge, president of the Oxford Linen Mills of North Brook-field, Brook-field, Mass.. was given a four-year term. He was a chemist and inventor, in-ventor, whose alleged discovery of a process to make flax yarn from flax straw at an enormous saving, was widely advertised by the company in its campaign for the sale of the Oxford Linen Mills stock. Three-year sentences were imposed on Wilbur M. Stone, a patent expert; Ehvyn A. Barron, a prospectus writer, wri-ter, and W. S. Edwards. The seven were found guilty last night in federal district court after a long trial, at which they tried to prove that Mudge's process was all they had claimed for it and that they were engaged in a bona fide stock selling sell-ing campaign.