The Montgomery advertiser., 1902-12-19
A GIGANTIC FRAUD
INSPECTOR KYLE UNEARTHs
 FRAUD PLANT AT TOLEDO.
But the Ringleader Escapes-severai Concerns Operated by Promoter, Who Secured Countless Victims
 Throughout Country.


 Toledo (ohIo) Specially
 The Government officials here are in- vestigating what they believe to De one the use of the mails that mas been
 brought to their attention.
 The fact that they had the promoter of these various schemes in their clutch es at one time, and that he succeeded in
 blinding them to the magnitude of the frauds until he was safely beyond tneir reach, is annoying them considerably:
 At the present session of the United
 States Court here q man who nad pre-
 in furtherancs of 8 scheme to defraud,
 under the name of W. W. Wallace. came
 into court and entered a plea or gniity
 to that charge and was fined $5Oo and costs and allowed to go. on promise to
 quit operating the scheme. Judge Wing stated at the time of imposing the sen- terce that if Wallace was ever brought before him again he would send him to the penitentiary.
 This had the effect of causing Postoffice Inspectors Moore and Kile to begin an in- vestigation as to the business conducted by Wallace. The investigation started oy these officials shows that Wallace also operated under the names or E.. c. Becker, D, H. Rowe, E. F. Thompson and numer- ous other aliases and has, since entering his plea of guilty and paying his inc. managed to elude the vigilance of these OIIICerS. f1e IS HOW Dduly WdHtco py them, since the enormity of the schemes conducted by him have become known, and it Is believed by the Government of- ficials that Wallace has fled to Canada.
 Since the departure of Wallace. which Is | believed to be his correct name, the Postoffice Department has been deluged with complaints coming from victims who were taken in by the various schemes which he was conducting.
 Wallace conducted his business in the Wayne hui1dinU in thia cftv where he | occupied the entire third flood and had in his employ some thirty lady clerks and | stenographers. Inspectors Moore and Kile paid a visit to the place of business conducted by Wallace, and there learned 1 for the first time of the magnitude of the l various schemes conducted by Wallace. who, no doubt, discovering from some l source that an investigation was to be | made by the postoffice officials of his
 manner of doing business. had hastily l left the city. leaving his business and | books in charge of his bookkeeper. The I officials found the latter in charge, to-
 Mrs Wallace. Information obtained by
 these officials from the bookkeeper and
 an examination of the books kept by Wal
 lace showed that from various schemes conducted by the firm he was in receipt | of a net revenue of about $50 GOO per year | That he was able to keep from the post | office and other Government officials the | knowledge of the conduct of his busi- | nesSes seems surprising, but he was able
 to do so until the investigation was com. | menced by these officials
 The numerous schemes which he oper.
 ated are known by the names of the | Columbia Art Mfg. Co., The Eagle
 icine Co.," '"fhe Union Advertising O.,
 'The Brazil Diamond Co.," ''rhe Twen
 tieth Century Art Co.," "The x-Ray Wholesale Portrait Co.," "The Wayne
 Agency Co., The Big S. P. c. Medi cine Co., and The X-Rays Publishing | Co." These various schemes he ran un. | der the different names of E. c. Becker | E. F. Thompson, D. H. Rowe and numer- l ous other aliases. The charge which | caused the further investigation by tht | pcstofflce, officials was the scheme to de l fraud in using the mails in conducting the Columbus Art Mfg Co. His mode o doing business under this name was tC advertise in various country papers that l on receipt of $1 he would send an outf | and the victim could learn to do crayor | work at home. On receipt of the $l h,
 would send the victim an ordinary lead
 pencil, worth about cents. 1t was fol | the operation of this scheme that Judg, l Wing fined him $500 and costs and inti | mated that if he ever was brought be fore him again with such a rank frauC | he would send him to the penitentiary l In order to avoid the fraud order whicl
 had been issued by the Postoffice Depart
 ment against the Columbia Art Mfg. Co. | Wallace opened up under the various other names