Birmingham age-herald., 1894-10-25
Tie Postage Stamp Thieves Taken
 to Washington.
SINSABAUGH WAS RELEASED,
But Will Be Used as Witness. Judge Cole After Lottery
 Companies.

WASHINGTON, Oct. 24.-Beach and Sin- sabaugh, who were arrested at Columbia, S.C., for compicity in the big stamp steal from the bureau of engraving and print ing, arrived in this city this morning in custody, and were turned over to the United States marshall. Sinsabaugh, who undoubtedly had nothing to do with tue robbery, was subsequently, released, but he will be used as witness against Beach.
 Judge Cole in ths District of Columbia supreme court today decided that there was a law to punish the commission of crimes against the federal government when those crimes were committed within the territory of the district. The opinion grew out of the application for a writ of habeas corpus for William B. Smith, one of the employees of the bureau of engrey- ing and printing, charged with stealing 52, GOO postage ste ps from that bureau.
 The defendants attorney, MT. Hyman, in the course of the argument today asserted that the court could not assume from the mere fact that the prisoner had been committed by the police court that that court had jurisdiction. Judge Cole re- piled that he not only could, but would make that assumption, and said further that un less the defendant could show that stealing from the government was no crime, the petition for the writ would be dismissed.
 MT. Lyman proceeded d to read the law as he construed it to bear upon the case at is- sue, but was interrupted by statement of the court to the effect that his citations had no bearing upon the question. The attorney retorted that he would read what he thought was proper in behalf of his client.
 Judge Cole, with an emphasis that could not be mistaken, replied that he did not care to hear the attorney further and told him 10 take his seat, which he did. The court then dismissed the petition for writ of habeas corpus and remanded the prl5- oner back to jail to await trial.
 The judge is determined to prevent the correspondence of bond investment com panies from being carried through the mails, and will order criminal proceedings instituted in every case brought to his att tention.
 A postoffice department official, in speak ing of the mltter today, said: 'For long time the department has been taking active steps to bring the promoters of the euter- prise to justice, and among them are some very prominent men in political life. These companies are conducted materially the same as lotteries, and are at present oper- ating in tbe south. Within the past few days ten companies of this character in New Orleans, Jacksonville, Nashville, Att lanta and Cincinnati have been forbidden
 
 each mt mber a certificate with number on it, for which they charge an initiation fee of about $5. Every member also has to pay from $1 tu S2 50 in monthly dues, and when certain amount of money gets in. their treasuries the companles distribute it to the m mbers holding the proper num- Der.
 .sThe result ofthis is that only one mem- Der in every 100 gets anything, aud the re- maining members, of course, lose their money. The copcpanIes cannot lose any thing under any circumstances, as they get the initiation fees and deduct about 20 per cent of the monthly dues. A com pany's officers who were recently con- vicled in Chicago took in within two years s550, eco. Within the last twelve months between 250 and 300 investment companies have operated here, but the rigorous action of tine postoifice department is tending largely to diminish the number. They started in New England and then operated in the west, from whence they have been driven to the south. Convictions haze been obtained thus far in every case Tn which proceedings have been instituted. o