The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-11-30

ment a number of bond investment
schemes sprang up over the country
embracing lottery features in their
Assistant Attorney General Thomas
declared, in 1899, that
These so-ealled bond investment schemes
are more dangerous to society than
ayowed lotteries.
Shortly after Tyner and Barrett were
installed in office eight of these bond
investment companies, against which
fraud orders had been issued by
Thomas, formed an organization and
sent representatives to Washington for
the purpose of having these fraud or
6ers revoked G. A. Where of New Or
leans, a representative of these COM
panies, on June "a wrote the secretary
of his company as follows:
have got the strongest assurance that
the government is our friend and will do
all they can for US. Being sure of this L
wanted to return home, but Butterworth,
Dudley and Tyner himself tell me that I
must stay here; that I will be needed.
On June %, four days later. he again
wrote:
Had long interview with the law clerk
(very satisfactory. He is a nice fellow
and a relative of Tyner's wife. His name
is Barrett and he has charge of this mat
ter of ours and is conducting the jnveSu-
cation. 1 expect a suspension or
der by about Thursday.
This letter was written on Monday,
June %. The fraud order was revoked
than Where expected.
After the fraud orders against these
institutions were revoked bond invest
ment schemes multiplied until there
were several hundred in the United
States.
Early in the years 1900, Barrett and
]. Henning helms. an agent for bond
investment company, made verbal
ship January 1, 1901. Shortly after this
agreement Barrett announced that he
intended to render a decision as to all
bond investment schemes. This opinion
was rendered on December 5, 1900, and
it held all bond investment concerns as
fraudulent. But while declaring them
"inimical to the postal laws" Barrett
suggested that they be given an oppor-
tunity-
to make such changes as will eliminate all
Objectionable features before further ac-
ton is taken by this department in the
direction Of deDriTlng them of The use of
lie mails
And the same mail that carried the
opinion with this suggestion to the
bond investment concerns also carried
the announcement that Barrett had re-
signed and formed a law partnership
with Nelms. The result was that many
of the concerns Immediately sought his
services In a letter to the secretary of
one of them, written ten days before he
retired from Office, Barrett said:
believe we can eliminate all the objec-
tionable features in the contracts and put
them in such form that they will meet
with the approval of the department Our
fee would be 81 600 retainer and 500 a
month for II months
A number of representatives of bond
investment companies were in Washing
ton during the holiday week of 1900, but
they could get no satisfaction out of
Tyner. But on the 31st of December,
after o'clock in the afternoon, they
ment Barrett by appointment and en-
ployed him as their attorney. On the
he or to
Tyner and had their certificates ap-
proved.
Southern Mutual company-The
Southern Mutual case of Lexington,
KY, probably more clearly illustrates
the scheme of Barrett, Tyner and helms
than any other. helms was the attor-
ney, for the company. A fraud order
had been issued against it by Assistant
Attorney General Thomas on January
p, 1897 but afterwards revoked by Bar
rett
on the Dist of December, 1900, helms
secured the approval of Tyner of a plan
which enabled 1t to operate its business
according to the old plan, which Bar
rett in his opinion had declared fraudu-
lent. And on January 5 following
helms wrote Bowman, secretary OF the
company
1 wish you would ssGte to your board of
direc' o~s Just what I s;a' ed 70. You and
Mr. Bronston VIXEN Won and he agreed to
lay me $1,000 fee 20 get Gen. Tyher tn
say he would approve the contracts sub
mitted to him
The issuing of this opinion of Bar
rett's caused panic among bond in
vestment concerns. K. G. Pulliam of
the American Investment company had
employed ex-Secretary Carlisle as attor-
ney to represent him in his efforts to
prevent the issue of a fraud order. Pull
liam in a statement says that Mr.. Car
Isle advised him:
There are only two ways of accomplish
ing this: First, to take the matter into
the federal courts at a likely expense of
$25 000 the second to employ MeSSTs. Bar
rett and Nelms newly organized law
firm, who stood close to he TYner crowd.
but if it was to be done this way he would
have nothing to do with it.
Pulliam, however. was not so sensi-
tive. He employed Barrett & helms
and contracted to pay them $1,000 as a
retainer, and further cOmpensa ton of
$500 per annum in monthly installments.
The books of Barrett & helms show
that during the first fifty-five days of
their partnership they received Sc, 900
from these bond investment concerns.
Physicians Institute.
The Physicians Institute of Chicago,
advertised magnetic belt free" To
anyone answering this advertisement a
symptom blank was sent to be filled out
and returned. In every case this con-
Germ claimed that the symptom sheet
showed such a complication of diseases
that the belt alone would render no ser
vice; and a package of special medicine
was forwarded in connection with the
belt, by express, G. o. D., $3.50.
When an investigation was ordered
the company engaged the services of
Barrett, and paid him a fee of 5000 to
them before Tyner. On No
vember 10, 1901, Barrett prepared a let
ter and sent it to Tyner's home address,
a note indicating the kind of
a decision he would like. A few days
the case was disposed of as
suggested by Barrett in this note.
Turf-Investment Companies
E. J. Arnold & Co. of ST. Louis, Mo,
were conducting what is known as a
s'turf investment scheme. On Novem-
Der %, 1902, the inspectors, having in
vestigated the company, recommended
that a fraud order be issued against it.
In the meantime the company had en-
ployed Barrett as its attorney and paid
him a fee of 81, 000 And instead of
issuing a fraud order Tyner gave the