The Montgomery advertiser., 1903-08-07
DEFRAUDED INVESTORS
CO OPERATIVE TURF AssoCIA-
 TON OF NEW ORLEANS.
Assistant Attorney General Robb Issues an Order Denying the Concern the Use of
 the Mails.

Washington, Aug 6.-(SpeciaI. )-Assist- | ant Attorney General Robb to-day gave | another jolt to the concerns throughout the country which try to use the mails for fraudulent purposes when he Issued fraud order against the C0operative Turf Association Of New Orleans F' e4a This Is regarded as one of the most fla grant of a number of cases that have been brought to the attention of the Postoffiee Department within the past few weeks. The fraud order against the Co-opera- | tive Company was based on evidence which tended to show that the company, | by extensive advertising through the | malls, solicited and received money to be bet on horse races, receiving as it's remuneration 20 per cent Of the winnings It was found by the evidence that some of the money was not used in accord ance with the representations of the com pany by wagering 1t on horse races, bu. was fraudulently diverted from such channels to the use of the company. IL was further found that the 20 per cent. commission which the company obtained on the winnings was money obtained un- | der fraudulent pretenses In this the in- vestor was induced to place his money with the company because of fraudulent representations. pretenses or promises made by the company.
 The Cooperative Turf Association ac. cording to the evidence, made false and | fraudulent representations and is said to have at the present time not less than $200.0OO. received from unsophisticated persons throughout the United States and believed they were dealing with a company that would do as it agreed. . It was shown by the evidence that in | the latter part of January the company sent out letters to its investors in which it was stated that the daily notifications would be discontinued and statements would he made weekly. In the middle of February the company sent out a cir cular letter to it's patrons urging them to invest more money and assuring them that the outlook for large profits was bright.
 Between February 10 and 70. many or ders were sent to the company by pa- irons, stating that they wished to with draw their money and to have it sent to them by the company. The company, ac- cording to the evidence. adopted various means of delaying the return of the money. the most common of which was to send a letter asking the applicant to still leave money with the company for investment.
 If the investor still demanded his money. an application blank. ambiguously worded, was sent for him to i'll out.
 
 the company sent a notification to the person that all his money had been bet on the races and was lost.
 Letters received from the company by twelve or fifteen complainants fully sub stantiated these facts and showed that the company after receiving notification for withdrawal. either used the money demanded for betting purposes pr divert. ed it to some other end. contrary to the representations and promises made by the company.
 The Postoffice Department, after thorough consideration of all the evil dence, came to the conclusion thas the money thus alleged to have been lost on the races was diverted by the company to its own use. Clinching evidence of the fraudulent purposes of the company are found in it's advertisements which almost invariably made glaringly false state ments to delude its patrons
 R. H. Watkins.