The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-03
CORTELYOU WILL
FERRET FRAUDS
Postoffice Department Will Look
into Possible Get-Rich-
Quick Schemes.

1nJO POSSIBLE GeL-klCh-
Quick Schemes.
From The Journal Bureau, Colorado Building,
Washington, May 3.---If the Ameri-
can public persists in being swindled by
plausible but Ubiquitous get-rich- quick
schemes it will not be the fault of Post
master General Cortelyou. He has
sent out orders to his force of postoffice
vigilance The assistant attorney gen
eral for the postoffice department., and
his office force, have been asked to be- L
come more diligent in reading adver-
tisements in the newspapers and period
icals in the hope of discovering there
concealed, ways that are dark, and
tricks that are vain, for catching the
American sucker.
Postmaster General Cortelyou is not
going to wait for complaints He is go
ing into the highways and byways to |
| look for confidence schemes and place
| them under the ban.
| In the fifteen years that Uncle Sam s |
manager of mails has taken upon him
self the task Of keeping business pure,
and protecting Americans, 2,1SO fraud |
orders have been issued.
First, Against Lotteries.
| At first the executive departments Of |
this government dealt timorously with
persons with get-rich-quick schemes.
Fraudulent lotteries only were un-
der the ban under the law Of 1872 The
statute referred vaguely to false pre-
tense schemes, but executive officers ig-
nored this portion of it. Maximilian
A. Dauphin, president Of the famous
Louisiana Lottery, company, is No. on
hn CT nfh hon tnr
in the dockets Of the department. A
new law was necessary to put his I'M
dertaking out of business. After that
all lotteries looked alike to the gov
eminent.
Under the law which proved the be-
ginning Of the end for the gigantic
Louisiana swindle, only registered let
held. Five years afterward, in 1895,
the law was extended to include ali
mail matter. . r az
Inventors swindled.
AS lotteries became scarce, the post
office department. looked about for
other game. It found some in the case
of John Wedderburn, John Wedderburn
& Co., and the National Recorder Pub
fishing company. The inventor fur
nished food for the Wedderburn COM
bination. Putting Wedderburn out Of
business by holding up his mail, marks
one of the earliest important cases de-
legged fraud or false pretense aside from
the lottery element. This case was de-
cided in 1897.
Another famous case turning upon
alleged fraud and false pretense was
the. Fairfield Flower company prose-
cution: This concern, having headquar-
mat and taugh sH them us to 'nG maRe
artificial flowers. The flowers promised
to be sources of great income to the
victims. but they never quite arrived.
Some defects, you know, which could
lines, which the Fairfield company
would give for consideration. After
the victim discovered that the corn
was musty and refused sto follow fur
Their, he was dropped. 20 ~ -
i = Fountain Pen Scheme. 20 =, -.
Still another step in advance was
or Nozzle Brothe1s Of New York city.
They had scheme for selling fountain
pens for $3.50 each and employing at
SO a week in advertising letter-writ-
ing everybody who bought pen. It
constantly wider. All revenues were
derived from the sale of the pens. This
inverted financial pyramid was not
thought stable by the postoffice people
, and Nozzle Brothers were put out of
business by means of fraud order, in
October. 1902, after having secured
; 10000 victims.
! A most gentlemanly scheme having
J. no end Of imitators, started by the EN-
4 pire Diamond company of. San Fran
cisco, CAL, came to grief about a yeal
ago thru the squeamishness of the pos
. tai authorities. It was scheme tc
! give a $3.50 diamond to everybody wh(
, would pay $50 in weekly installments
9 thus putting each investor almost il
q the position Of the chattel loan man
The company any depen%ae ea+s upon apses t.
said that was impossible, and the hon
] est promoters went under the shadow O.
Z the ban. incidentally they quit bust
b ness. All of its fellows have followed
4 suit.
q The Empire diamond scheme seem
g the lineal descendant Of certain bon'
g investment schemes in which some goo
= people in Minneapolis and elsewher
q became interested. These bond schemes
y which at one time promised great posi-
"A bllitles, went astray, confused by tn
q postoffice frown.
" The Guessing Contest.
A After hunting down schemes Q
y alleged fraudulent character, tn
~ toward the lottery idea. I
- this turn guessing schemes, includin
ad- guessing for prizes as to the attent
Isl, ance at the st. Louis fair and guessin
10 the, number of ballots cast for Roost
. welt and Parker, fell under the ban.
These cases brought out last Noven
Der an opinion by Attorney Genera
Moody holding the fraud order la