The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-12
Postoffice Inspectors Say He Has Used
the Mails for DefraudinE Thou.
sands of People.
HIS SCHEME VERY ALLURING
EVEN CHURCHES AND LAWYERS
AMONG HIS VICTIMS.
How He Led the Gudgeons to Be-
Iieve They Could Borrow Money
If They Paid Good Fees.
NEW YORK, Dec. u.-Osmer w. Roper

NEW YORK, Dec. n.-Osmer w. Roper.
of Newark. n. J., was arrested to-day by
United States Marshal Garside, Postoffice
Inspector w. 3. Snow and several deputies,
and committed to Jail in default of $1,000
bonds. The charge is based upon an al
legation that he was using the mails for
swindling purposes. The authorities claim
that his scheme was far and away better
than Millers Franklin Syndicate, in that
he took In plenty of money and seldom, If
ever. paid out any except for running eX-
penses. They have fifty complaints drawn
up against him, and say fifty more are filed
and that they can get thousands of them II
need be. The swindle, as they say 1T was,
has been in operation for three years. Ro-
per's business required a large force OF
clerks, stenographers and typewriters,
and he did an enormous mail business. 1t
is claimed that Roper is the Realty Corpo-
ration Company of New Jersey. the Realty
Loan and Trust Fund Company, the Realty
Loan and Title Company and the Four Per
Cent. Mortgage Company. The authorities
say the company existed only on paper,
although regularly Incorporated and that
in each Roper was the only person con-
cerned.
Inspector Snow SAYS Ropers scheme was
alluring and that his victims are in every
State in the Nation and embrace all
classes He says that even churches ana
LAWYERS have been taken in by Roper. Ac-
cording TO the inspector, who mas had per
sonal charge of investigating Roper al
fairs. the four concerns were worked III
pairs. The method is alleged to have been
something on this line: The Realty Corpo-
canf
lars all over the country. The stationery
was most elaborate and so got up as 10
deceive even business men. The body or
each circular stated that the company was
in a position to obtain for any person with
property loan OF any amount OF money
at per cent. or even less. Money was rep
resented to be cheap and plentiful In New
ark, and not only good terms as regarded
interest were offered, but easy terms as to
repayment and renewal. If the person re-
ceiving the circular should not want to
borrow, he doubtless knew of some friend
who did. Would he hand the circular to
the company?
LED ON HIS VICTIMS.
When a response came asking for money
and offering security, a reply was sent ask
ing for more particulars. and calling for
fee of $40 to cover appraisement cost. In
due time the victim received communica-
ty corporation was concerned, but requir-
ing certificate of search and title guar
antee from the realty land and title fund.
BY the time this company executed it's fees
the victim had paid in from $40 to $50, &C
cording to the abstract of transfers, fur
nished by the would-be borrower. After
this plan had been worked out and every
dollar possible had been extracted the loan
would be approved.
Then the victim would be taken in hand
again. The details of the borrowing would
be laid before him. 1t was explained that
every month the money taken in from in
terests, repayments, etc, was put at auc
ton under rules similar to those of build
ing and loan associations. and that the
money was loaned to the highest bidder.
How much would be borrower be willing to
bid? 1t was left TO himself and an idea
was given, him that the money was easily
obtained. The bidding occurred monthly
and was open. The bid had to be filed out,
and cash to an amount equal to 50 each
500 was required TO accompany the bid.
AS there were few applications for less
than 81 600, and most of the victims wanted
several thousands, the returns were heavy.
After the passing of the date when the
sale of the money was supposed TO take
place, the victim received a note. The
company was sorry, but he had been out
bid by others and every dollar sold had
been disposed of at a better rate than he
had offered. The name names of those
who were supposed to have bought the
money were given. The company would
hold the percentage paid in and bid the
same rate again unless the customer wished
to increase the amount he would bid in
which case enough money to make up the
additional per cent of the whole must be
forwarded. Usually this brought in more
money. This went on for month after month
until victim made a demand for the re-
turn of his money. He then received blanks
which he had TO fill out. He could not get
the fees back, but a percentage of the 5
per cent. deposit would be returned, usually
10. Is or 20 per cent. at the expiration of
twelve months from the receipt of the
blanks, and so on.
The Realty Loan & Trust Company and
the -Four Per Cent. Mortgage Company
are alleged to have been worked together
in the same manner as the other two are
claimed to have been made to fit into each
other to swindle persons.
When the officials swooped down upon
the offices to-day they took possession of
everything in sight except the employees,
whom the officers had all investigated pre-
viously and knew all about and wnere they
lived. Several mail bags full of circulars
letters and applications were seized. The
inspectors say the applications for loans
ran into the thousands and that the profits
to the prisoner have been very great.
Roper says he has nothing to do with the
Realty Loan & Trust Company or the
Four Per Cent. Company, and that he
sold them out long ago. his, the inspec-
tors say. is not IN. case. Roper will be
given hearing on Thursday.
The police estimate that Roper's opera
tions must have netted him 100000. He Is
said to have been arrested before for swim
ding. Among his victims are a church i'm
Annapolis. Ind, which gave up 1894 and the
Mount Zion Baptist Church OF Knoxville.
Tenn, which sent 500.