Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-07-31
THE "CHAIN SCHEME"
Postofhce Department. Seeks to
a End Fraudulent Propositions.
AUTHORITIES RDAFTER OFFENDERS
Offer Generally Made Under PROPOSE.
ton to Furnish Home Work-Plan
Exposed by Specific Test-Govern-
ment Seeking Information.

ment seeking Information.
Washington, July 29.-The postof-
flee department is just at present
making hard shedding for a multitude
OF concerns in all parts of the coun-
try; although principally, in the east,
operating what are departmentally
known as "chain letter" schemes.
The scheme usually appears in the
daily papers in the form of an adj
vertisement offering home work.
From eight to twenty-five dollars
weekly are assured those who are will
ling to work a little while each day,
or evenings. No canvassing. When
replies are received printed circular
letter is sent by the concern inform
ing the applicant that upon receipt of
$3.50 solid gold fountain pen will
be sent. The applicant is offered SIS
per week to write ten letters per day
to parties whose names will be fur
nished by the company, or the agent
himself may slect the names: S1.5O
additional to cover cost of postage,
ETC., is also guaranteed.
The Scheme.
The salary is not to begin for one
week, but the $15O will be allowed
for the first weeks postage, etc. The
letter which the agent is to write and
mail to ten persons each day, is as
follows:
Dear Friend: Enclosed find an
agreement and offer from ...... G.
Co. If you take advantage of this
offer you must sign this agreement
and send 81. so for the pen. They
will then sign this and return to YOU
with the pen. They will furnish you
with circulars and agreements, also
the names and addresses of people.
You must write ten letters every day
to people whose addresses you know
or to those furnished by the company.
Yon must enclose one circular and
agreement in each letter you write.
All letters you write must be copied
from this letter word for word from
beginning to end. Always sign your
name and address when you copy this,
and return this letter to the company
They will furnish you with number
you must always sign after your
name"
Cannot Discontinue Work.
On the face of these circulars it will
be seen that the plan OF business be
longs to the so-called "chain-scheme'
and after the promoter has started it
it is impossible for him to discontinue
without breaking the promises which
he has thus given. A pen and work
at S. per week, in addition to $1.5O pei
week for postage, etc., are promised
the salary to begin at the end of thu
first week. The consideration there
for is $3.50, which is paid by patron.
Of the scheme before the work will b,
sent. By this system at least two
weeks work must be given each pa
iron of the scheme to fulfil the prom
Use made; an expense of So. The in
come from this patron is but $3.50
The whole scheme resolves itself into
this proposition: For a consideration
of $3.50 and the writing of 12O adver
Using letters --- & Co. promis,
to give pen and So, an impossible
proposition, inasmuch as the letters al
hold out similar promises and il re
turns are received therefrom it mean
other promises similar to the abov,
for the small consideration named
The only gain the company receive
either from a theoretical or othe
standpoint, as shown by the explana
lions of attorneys who have undertak
en- to defend companies, are from per
sons who are expected to pay $3.50 TO
the pen and the work, and subsequent
ly decline to work. This is unreasor
able inasmuch as the main inducemen
is work-not the pen.
A Specific Test.
To cite a specific case, a conlpan
was called upon to make a shown,
and the investigation revealed that i
was established about February 1, las
and had been doing business actuall
but nine weeks, during which time j
delivered about 10000 pens, failing u
fill many orders by reason of inabilit
to get pens from makers. The tim
was too short to test the outcome q
the scheme; but was long enough t
show that the company received abou
$4,000 while it had agreed to pay owe
$4,000.
Plan Exposed.
Admitting the statement of the con
pany's attorney to be true that it il
tended to make payment to this eXten
(assuming that each customer had il
volved the company in debt of S,
and that the number of customers wa
one person to each ten, or 10000 i
10 apPalSHt Iheae thS losS vi tne con
pany would have been about $105, 900.
The attorney for the company sal
it was expected the profits would com
from lapses; failure of agents to ca
for work, rather improbable hypoth,
sis in view of the fact that work is tn
sole object for which reply to the a,
vertisement is made.
Is Sure to Defraud.
The postoffice department takes til
view that business which proceed
upon the theory suggested is concei'
ed in iniquity and sure to defraud
the end. This scheme once starte
would continue indefinitely, or as Ion
as printed matter held out, and 8
agents were instructed to send letter