The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-03-05
USE RELIGION AS
CLOAK TO SWINDLF
PostOffice Authorities Arrest
Heads of Publication House
Charged With Fraud

CHICAGO.-Winat is declared by the
postal authorities to be a gigantic
scheme of swindling the unwary by the
operation of an alleged religious pub
LEGATION house in connection with en-
ployment agencies throughout the Mid
die West and a liberal distribution OF
alluring circulars and advertising mat
ter sent through the mails was laid
bare yesterday afternoon by the arrest
of Charles E. Phillips. manager of the
Empire book house, which has a suite
of sumptuously furnished rooms on the
sixteenth floor Of the Manhattan build
ing, on Dearborn street
Phillips, who is said to be the king
bee" of the alleged swindlers, was taken
into custody by Postoffice Inspectors
w. T. Fletcher, of Indianapolis. and r.
NJ. c. Hosford, of Chicago, who have
been working on the case for several
weeks on complaint of several persons
said to have contributed IS each on
contracts with branch concerns, from
which they received no return.
Claim Big SwindIe
I'VE have evidence that Phillips and
his accomplices in various cities in
Indiana. Ohio and elsewhere swindled
thousands of patrons said Inspector
Fletcher last night. ''It would be hard
to estimate the losses of those whose
cupidity led them into contracts with
the concern. There are hundreds in
indianapolis. Evansville, Terre Haute
and Cleveland. where branch houses
were operated. This man Phillips is
the cock o. the roost.' He was ar
rested by the postal authorities May
IA. 1908. on similar charges"
+ ConservativeIy estimated it Is de-
clared that the amount of money in
volved in the Empire book house and
its various correspondents throughout
the country will aggregate 100000.
Managers of several branch houses
have heen placed under arrest at the
instance of Inspector Fletcher. who
swore out the warrants on charges of
using the United States mails to de-
fraud. At Indianapolis, c. c. Burns.
manager of the Guarantee Employment
agency, was taken into custody. At
Evansville, Ind, the inspectors caused
who gave her name as Minnie Early,
who is posing as the wife of Early,
although the postal authorities assert
the man has wife living in Rochester.
n. Y. Early is in Jail in Indianapolis
and the woman was released on a bond
Of $500. Burns put up a cash bond of
$500 for his appearance before the
United States commissioner.
Operates Employment Agency
The Evansville branch of the book
concern which was managed by Early
was known as the Surety Employment
agency. Prior to going to Evansville,
Early operated the Fidelity Employ
ment agency, in the National block. at
Terre Haute, Ind. He was there but a
short time when some one complained
to the police. Early got a tip from
some friend and left the city, leaving a
trail of victims, and showing up later
at Evansville. where he opened opera
tons again under the name of the FL
deity Employment agency.
AT Cleveland, Ohio, the postal au-
thorities found P. o. Krehbiel in charge
Of a branch house of the Empire book
house, under the title of state superin-
tendent. He was promptly placed I'M
der arrest. The branch concern Is To-
Gated in the Central Trust building, 176
Euclid avenue, Cleveland. A large
amount of documentary evidence i'm
plicating Phillips and his accomplices
was confiscated by the authorities
6lpieS are Soid
According to the official stationery of
the Empire book house, the concern
operated as wholesale and retail deal
ers in medical, law, scientific and re-
ligious publications, including Bibles.
The employment agencies, it is alleged.
were used to get agents by means of
apparently alluring contracts.
On the payment of 50 down a pros
pective agent or travelling representa-
tive was told that extraordinary efforts
would be made to secure a good paying
position for him. He was then placed
in communication with the Empire book
house and given cheap set of samples
or publications, providing he put up
guarantee of $25. The agreement was
ingeniously constructed. SO much so, it
is asserted. that the book concern could
terminate IL at any time and dismiss
the agent without making any return
to him of the s25 guarantee. 1t is in
the character of this document that the
postal authorities declare they will
prove fraudulent use of the mails as
we'll as in the circulars that were sent
to the prospective agents.
Claims It's Mistake
The warrants placed in the hands of
Inspectors j. d. Farrell and FLETCHER
called also for the arrest of T. A. n.
ellis as one of the heads of the Chi
cago concern with Phillips. In this the
inspectors were foiled by the hand of
death. ellis was stricken with pneu-
monia last week and died last Sunday
night at his residence, 7117 Drexel ave-
nue.. AT the time of the former arrest
OF Phillips, in May. 1903, ellis was
taken into custody with him, was tried
and convicted. and paid fine OF $1,000.
AT that time Phillips was only an en-
pioye of Gillis
Cards of the Evansville branch, the
Fidelity Employment agency, bear the
inscription that the concern has the
highest testimonials and Endorsements
after fourteen successful years in bust
ness"
It's all a mistake" is all Phillips
would say last night. He will be given
preliminary hearing before Commits