The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-09-21
SWINDLING THE IGNORANT.
A GANG THAT EXPECTED TO F4TTEN
ON HUMAN CREDULITT.
They Said Uncle sam was Short OF Gold,
and Would Pay in Paper 0S Tor S1-Rak.
Ing In the Gold TO Exchange for Paper
Many Yictlms-Two Leaders Arrested.


Many victims-Two Leaders Arrested.
CHARLESTON, w. Va, Sept. 20.-L. w. Naylor.
Post Office inspector from Washington. who
has been in this city for the past few days. has
brought to light big swndling scheme which
has been In operation in this section Of the
State for some time Tho scheme Is said to
have been operated bya gang, OF which Robert
+. Lively. the son Of a clergyman near Spring
hill. is the leader. and George w. Rose and
Henry Ash OF this neighborhood and others
are confederates. Rose and Ash have already
been arrested and held in $1,000 bond each to
answer for using the mails for fraudulent pur-
poses. Lively is now hiding in the woods.
armed with Winchester and two revolvers.
but deputy marshals are after him. and he
will. in all probability. join his confederates.
Their operations have been carried on In
Kanawha. Boone. and Lincoln counties. and
several thousand dollars have gone from the
hard-earned savings of the poor people. 1.-Two
ly and his associates converted themselves
into IN association known as the National As
sembly. secret organization. To member
ship in this society they admitted such OF their
friends as they supposed to be perfectly relia-
bic and in possession Of a little money. The
organization was Of the most secret charac-
ter. Their meetings were held out I'M
der the trees. in deep ravines. or on the
mountain side. A solemn onth OF secrecy
was administered to every member. and thus
the existence Of tho swindle was kept n secret
for some time. The organization was sup
posed to be national one. with its central
Office at Washington and branches oil over the
country. Four assemblies" were organized
in this State. known respectively as the st. AL
bans. Lincoln County. Boone County. and
Charleston assemblies The inducements for
entering the assemblies were the opportunity
they afforded their members to make money
rapidly and in a lawful and safe manner. The
condition of the United States Treasury was
made to play an important part in the swindle.
along with the bonds which were to fall due.
The swindlers made up story about tho
great quantity Of Government bonds that were
soon to fall due. which were payable in gold.
the vast expectations of gold to foreign coun-
tries. and the consequent inability Of the Gov
ernment to meet tho payments Of the bonds.
The swindlers then went on to say that.
and, and meet fssv the payment the bonds
%ept must raise the u gold: that wills fs'f It
had little gold il, had plenty Of Ereenbacks.
9a1 wG Ts Of aqT I'M f2 As
sembfy was to raise the gold required by. tho
Government. and its. assemblies all ovSrttho
Ssas ' "s"
which all the operations were carried on. and
getting back IN bank notes five times what
they sent to Washington, The g. and o. Rail
way had been paying or in gold, SO it was an
easy matter to raise considerable coin One
assembly alone put in over $1,000 in hard
cash. The money was all gathered up by the
officers. to be by them sent on to Washington.
th hsn HS ms ter he Of getting tine Sssf sams
money.they kicked. hut the officers were ready
for them. They exhibited letters from the
imaginary National Secretary Of the order and
from the President OF the change office" eX-
patiently: In Charleston, where the people
organisation feature Of the swindle was
dropped. The proposition t. exchange gold
1or y9 tines it, It WIS r;st by the
We're on the inside and were willing to put
the victims in the right way to accumulate
a fortune because of their friendship for them.
One poor fellow. Woodworking colored man.
and said he was willing to show him an oppor-
tunity to make some money more easily than
he had been doing. He then told him the story
about Uncle sam 3 embarrassment. The fellow
took It all in. drew out 500. and let Rose send
1t to the Washington Office. In short time he
than 5000 at n time. and could fill no order for
less than $1,000 in paper.
The co!ored man drew out his remaining $50.
borrowed 500 more. and had it sent on. He
Rose to send one of Roses friends on to WASH
ington to investigate. He then paid s ~ o.
and is now S210 out.
Mr.. Naylor and the authorities have n good
deal of information about the case. which they
sufttcient evidence to give the guilty men q
pretty good term in the pententary.