Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-09-13
APPEAL TO COURT.
Foster & Co. Seek to EnjOin POST
master General.

Suit in equity for Injunction, the action
being In the nature of test Of the right
of the government to exclude from the
malls communications addressed to certain
classes of individuals and firms was filed
in the Supreme Court OF the District Of Co
lumbia late yesterday afternoon by Arthur
s. Foster & Co. OF Philadelphia, who name
Charles Emory Smith, Postmaster General
of the United States, defendant. Justice
Bradley issued a rule against the Post
master General to show cause Monday next
why the prayers Of the complainants should
rot be granted.
In the bill it is explained that the COM
plainants are brokers, who promise to pay
their clients ) per cent per month, or ~
per cent per annum, on all money deposited
with them for investment in cotton futures
The court is informed that the complain
ants are subjects Of Great Britain, their
main office being in Liverpool, England.
About ten months ago a branch house was
established in Philadelphia. The firm issued
pamphlets In which 1t announced that II
would pay all sums of s. or more de-
posted with it for investment III cotton
futures interest at the rate of per cent a
month or 90 per cent per annum. Any client
of the company might withdraw his deposit
by sight draft at any time he saw fit, and
blank drafts for that purpose were fur
nished all depoSitors, SO ii Is said. 1t was
not intended to make this permanent fea-
ture of the business, but was done with a
view to bringing new customers. The firm
declares that it was fully able to carry out
the provisions of its agreement.
Continuing, the compliments state that
last July post office inspector called and
made inquiry concerning the business Of the
firm All his questions were answered
truthfully, and the methods Of doing bust
ness were explained. The inspector made
an engagement to return. but failed to do
so. The postmaster at PHILADELPHIA, acting
under orders from the Postmaster General
1t Is declared, refused to deliver mail to the
firm since September 8. communication
from the acting assistant attorney general
for the Post Office Department. requiring
the firm to appear before him and show
cause why fraud order should not be is
sued against 1t was received the eth in
slant. 1t Is alleged.
The complainants go on to say their attor-
neys appeared before the acting assistant
attorney general September 10. and gave a
full statement of facts concerning their
business. The attorneys assured him they
were acting in good faith with the public
that they were able to keep their agree
ments, but as they had no desire to do bus
mess in violation of the postal laws they
would discontinue to transact such business
through the mails. The acting assistant
attorney general would not agree to this
but insisted that unless it could be demon
strated that the petitioners could keep their
promises to pay per cent per month and
% per cent per annum fraud order would
be issued against them
The compliments add that during the
past year. without a single loss they have
made more than 100 per cent upon ali
money intrusted to the firm for investment,
and declare that such profit LIS not unusual
but is made every day by brokers I'm New
York, Philadelphia and Chicago Attention
is called by the compliments to an act Of
Congress authorizing the Postmaster General
to issue fraud orders upon evidence salts
factory To him" that there IS fraud The
Postmaster General has no evidence in this
case. 1t Is charged, but has taken it for
granted that there Is fraud because he
does not understand the business methods
OF the compliments. They further claim
there Is no authority for refusing to deliver
their mail until a fraud order has been is
sued.