The National tribune. [volume] (Washington, D.C.) 1877-1917, 1903-02-26

inaugurated, for the promotion of innum-
cradle frauds and swindles is too noto-
rious to admit of denial or even to excite
comment. The war against lottery
schemes waged vigorously for 20 years
by the Department, has been almost COM
pletely successful in barring that gigantic
swinde from the use of the mails, and 1t
is now almost as obsolete as the 32-cent
dollar Of the fathers. Equally vigorous
but less effective campaigns have been
made against green-goods games ana
other extensive fraudulent enterprises.
But frauds of various kinds, great and
small, are yet carried on through this
medium to an alarming extent. They are
inaugurated by all classes and denomlna-
lions of tradesmen, by publishers of
bacco dealers, compounders of Quack
medicines, organizers of bogus mining
companies, and inventors of financial
pitfalls ad infinitum.
The law which authorizes the Depart
ment on satisfactory evidence to EXCLUDE
these concerns from the use of the mails
is so arbitrary that it must be enforced
with great caution, and the impartlallty
as well as the firmness of the Assistant
Acknowledgement for the Department
must be invoked in order that the law
may be properly enforced without hard
shin OF injustice. Many persons Thought
their private business, and unexpectedly
find themselves within the domain of
fraud In such cases they are dealt with
as lenently as possible. But IN otner
cases, where the promoters have adopted
schemes with the manifest intent OF CD
tanning money or property on false repre-
sensations, they are not only put out OF
the mails by the issue of fraud orders,
hut they are also handed over to United
States attorneys for prosecution under
the penal statutes. Nigiant as the De,
partment is it cannot possibly reach an
Legitimate enterprises in time to prevent
great loss to the unwary from inconsld-
crate investments in bond enterprises,
tontine schemes, certifying coupons, Oh
debentures, on the instalment plan,
which promise enormous returns lmpos-
sibIe of realization by any known system
of honest finance.
Within the past two weeks wide
spread sensation has been created through
out the country by the Developments ID
relation to several concerns engaged IN
what is called the turf Investment busl-
ness, scheme of bookmaking or betting
on horse races ON the cooperative plan.
These concerns, with headquarters in st.
Louis and branches in every important
city in the country, were gathering IN
through the mails and otherwise large
sums of money from credulous investors,
which they agreed to place in race bets,
guaranteeing dividends from profits, If
any, of from three to five per cent. per
week 1t would seem that this offer was
sufficient on its face to put cautious men
on their guard, but, unfortunately, all men
are not cautious, and among the thou
sands of investors were men from the
highest professional ranks, including law
yers, clergynlen, etc.
These institutions, which finally turned |
out to be largely fraudulent, We're exam |
ined into by the postal authorities, but
their operations were not of nature to |
be interfered With on the evidence OBJ |
tanned The Inspectors could not discover |
proof of existing fraud. The perpetrators |
gave statements of their assets, liabilities, |
and earnings, but the Inspectors were
not permitted to verify these figures by
examination OF the Companies books.
Hence, they were unable to furnish proof
that the Companies were paying unearned
dividends or that they were not in sol
vent condition. These facts are essential
under the law as it now stands, to war
rant the issue of a fraud order preventing |
delivery of mail to such concerns. Some |
criticism has been INDUCED in against the
Department because these institutions |
were not classified as lotteries and pro-
ceeded against under the lottery law. But
as that law now stands, this would be
impossible, since it does not extend its
prohibitions to every sort of gambling de-
vices. The question whether the making of
bets or pools on races or like events con-
stitutes lottery within the meaning of |
this act, does not seem to have been |
passed upon by any Federal court. But |
= the weight of authority in decisions Of |
courts i'll several States is that the lay |
ing of such bets or wagers or the forma-
. ton of such pools is not an offense against |
statutes prohibiting the operation of lot
foru apf.a H..
strongly urged that the law be amended to
cover these points, but until that recon-
mendation is acted upon it can only inter-
fere in schemes of this sort when the evil |
dence presented clearly shows that the
enterprises complained of are engaged in
perpetrating actual fraud.
Formerly the green-goods swinde was |
the most extensive one worked through |
what green goods are-many who do |
know have paid dearly for their know |
ledge. The inspectors not long ago round |
ed up another gang in New York City. |
The method of these swindIers is to |
Hood the mail with circulars offering for |
sale to the addressee counterfeit money |
so perfect that it can not be told from |
the genuine" These men seldom handle |
counterfeit money. They simply lead the |
victim on to rob him. No sympathy |
should be wasted ON the man who is |
swindled by these green-goods dealers. |
lie Is, If anything, more insidious fraud |
than they are, for he is willing to pur-
chase counterfeit money with which to |
swindle his neighbors. If these fellows |
have well-executed notes that can be |
passed as easily as the genuine, why do |
they wish to sell them at 10 cents on the |
dollar? Would it not be more profitable |
to use the counterfeits themselves? |
Str1Qgp. the victims and fhora baya haon /
thousands Of them. never think of this.
Summer is the incubation period, as it |
were, of those who use the mails for the |
purposes of defrauding, and from past |
evidences it seems that during the hot |
months and the early Fall the hours are
spent i'll cOncOcting enterprises that will |
bring to them the elusive eagle Per-
haps they do not think it expedient to |
risk debarment by coming forth from their
hiding places before the Christmas holt |
days, when the country is usually flooded |
with the offspring of their fertile brains |
and the gullible are in their most altruis- |
tic condition.
A plausible scheme of frauds was operat-
ed through the mails by advertising for |
persons to do work at home painting |
china, representing that the work was |
easy and the pay good. A remittance of |
So was required from those desiring to |
undertake the work; after the remittance |
was received the promoters declined to |
nav for or accent the work on tho as