New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-12-12
CLEVER SWINDLE EXPOSED
A NEWARK MAN OPERATES AS FOUR
FINANCIAL CONCERNS.
PEMITTANcEs SECURED FOR "APPRMsEMENH
FEES" SEARCHES. ETc.-osMAN W. ROPER
HELD FOR FRAUDULENT USE OF


FEES" SEARCHES. ETc.-osMAN W. ROPER
HELD FOR FRAUDULENT USE OF
THB MAILS.
Postofice Inspector William B. Snow made an
important arrest in Newark yesterday and dis
closed an elaborate system OF financial swim
ding The prisoner is Osman w. Roper, who has
engaged in similar enterprises in the past He
was committed to the jail in Newark in default
Of 5000 bail by United States Commissioners
John Whitehead. The inspector also seized a
large quantity Of mali matter addressed TO the
concerns that Roper has been running
The remarkable feature Of the case Is the tacs
that Roper has done the whole business aiohes
and personally four different concerns
namely, The Realty Corporation Company OK
New-Jersey The Realty Loan and Trust Fund.
The Loan and Title Company and the -Four Per
Cent Mortgage Company. The office OF the two
first named concerns was in Rooms Nos. 81 and /
50 OF the London, Liverpool and Globe Building,
in Broad-st.. while the headquarters OF the two
last named companies was at No. 1s3 Market-st.
Roper divided his time between the two offices,
and the evidence shows that he was doing a.
large and rapidly growing business when the
POstOffice authorities came down upon him.
The specific charge against him Is fraudulent
use OF the United States mails. and II Is stated
that his victims scattered all over the United
States. and include individuals, societies and
churches. II Is believed that the operations or
the four companies cover hundreds OF thousands
Of dollars during the nearly four years that
Roper has been at work.
HOW HIS SCHEME WAS WORKED.
Roper is almost unknown in Newark. His
system to get remittances OF money by
offering loans on advantageous terms and at
low rates Of interest The interest or cupidity
Of the victim was aroused by circular which
set forth in alluring terms the opportunity for
easy and cheap borrowing With the victim
once caught the various concerns that figured
in the operation were brought into play.
Two kinds of circulars were sent out, one by
the Realty Corporation Company" which
stated that for the purpose OF securing loan 1t
would be necessary for the borrower to for
ward SO as an appraisement fee TO the Realty,
Loan and Trust Fund" The other circular was
issued in the name Of the Loan and Title Com
pany.' and required appraisement fee OF $40
and fee for a search. After the borrower WAS
thus taken in tow, he was Informed that the
Realty company organized on the plan OF a
building and loan association, and that IT would
be necessary to forward . per cent OF the
amount wanted to qualify the borrower for
membership. If the borrower forwarded the D
per cent he was duly Informed that the loans
made in the regular building and loan way,
by being awarded to the highest bidder and he
requested to send in his bid. 1t was easy,
after the borrower had proceeded thus far. TO
inform him that some person in distant sec
ton of the country had overbid him. and to send
in another bid. The sales OF money were alleged
to be held monthly. When the prospective bor-
rover got tired OF this operation, result always
anticipated, and wanted 10 retire with his money,
he was informed that the constitution Of the
concern he was dealing with provided for with
draWals, but that the Withdrawing member
could receive back only Is or 20 per cent Of tho
) per cent forwarded by him for membership
fee.
CHURCHES AMONG THE VICTIMS.
Among the victims Of Roper is the Zion Bap-
fist Church, in Knoxville. Tenn. and another
church in Annapolis, Nd. They are supposed to
be colored churches The loss OF each is said
to have been $500 The attention Of the Post
office Department at Washington directed
some time ago to>the Roper concerns. and In
spector Snow was detailed to investigate them.
He soon found evidence enough to warrant
arrest. Roper, it is alleged, served three and a
half years in Charlestown prison, in Boston. for
using the names Of merchants to get carloads Of
produce. 49,
Roper Is a small man, with a grayish, stubby
beard and is about ffty-two years old. He is
exceedingly nervous When arrested in his Of
flee he filled his overcoat pockets with cigars.
saying he was much addicted to smoking. Six
mabags packed with books, papers and
letters by officer There were thousands OF
letters bearing postmarks from all parts OF the
country These had been opened.
The books showed records Of the business
done 1t is alleged that there was not a single
instance or loan having Deen maze. On mo
circulars printed bogus names OF officers OF
the companies. The undevered mail for Roper
was detained at the postoffce awaiting orders
from Washington. Roper said in regard TO
the Loan and Title Company" and -Four Per
Cent Mortgage Company" that he had sold these
concerns out to other parties, who were running
them.
Deputy Marshal Garside, who helped to make
the arrest, said last night that Roper muse
have Melted at least 100000. Roper has a wife
and children living at No. o South Seventeenth
st. East Orange, and when he reached the jail
he telephoned to his wife that he was under
arrest. He will be brought for examination
before United States Commissioner Whitehead
on Thursday unless his counsel shall request
a postponement
Roper was arrested some time ago in Jersey
City as the manager Of a swindling real estate
syndicate. which professed 10 sell houses and
lots on the nstalment plan. the victims re-
ceiving no return for their money. He was sent
TO the Hudson County Jail, and was indicted and
convicted. He was sentenced TO State Prison
for three years. but his counsel<appealed the
case. and after he had been in jail eight months
the upper courts set aside the conviction on the
ground that his defence. that none Of the COM
planning witnesses had paid in the required
amount to entite them to a house and lot, was
good. He was then released and at once left the