The Washington times., 1906-08-09
NOTORIOUS CROOKS
PUT BEHIND BARS
SWindled Grocery Firms All
Over the North and
South.
SHREWD METHOD EMPLOYED
Victimized Same Concerns Time and
Again by Plausible Statements
and Clever Ruses.

Fog usias ,H, ,i 5.a.cs mails 10
ie---ud the wEolezaIr grocery firms
throughout the country, a. Donaldson
and j. b. Powell. two notorious swim
1lers are now serving terms in the At
lanta pentlenuary. For ,.rr year
previous 20 their arrest IA. conviction.
Donaldson and Powell conducted "a
rather unique scheme 10 obtain money
through fraudulent means. and the sue
cessful efforts of the postal authori-
ties in putting an end 20 their opera
tons viii undoubtedly result in saw
Ing, TO a number cf wholesale grocery
houses. large sums Of money.
Donaldson and Powell Degan business
AT SmithneId and Newport News. Va.
under the firm name o. L. X. Carr &
Co. as wholesale Brocvrs and general
merchandise commission merchants.
After obtaining price-listS and eata-
logues from weli-knOwh wholesale
houses. they induced many of the firms
TO ship large quantities of goods to
them at Smithdeld. from which place
the goods were reshipped To Newport
News, Norfolk, and Berkley, Va, and
there sold at ridiculously low prices
This scheme was continued until the
creditors began pressing for their
money, The business Of f. H. Carr &
Co. was then discontinued but not the
operations OF the swindlers composing
The alleged firm.
Begin Practices in Hampton.
They resumed business at Hampton.
Va. under the name of II. D. Worth
ington & Co, and, pursuing the same
methods as at Smithheld and Newport
curing goods. The merchandise was re-
shipped TO Norfolk, and there sold for
mere pittance, as compared with its
actual value
While Donaldson carried on the fraud
ulent business in Virginia. Powell con-
Quoted similar enterprises in Raleigh
n C., under various names. Through
evidence obtained by a Postoffice in
spector, however, PoweH's operations
were discontinued. and I'm June. sg15. he
was convicted and sentenced 10 serve
TWO and One-half years in the peniten-
uary and pay fine of $500 and costs
The arrest and conviction of his part
Uer IN crime did not appear 10 disc0u-
cert Donaldson, for in the same month
De began business al Ph0ebus Va nm
der the name of Donaldson, Frank 4
Co. wholesale erocers. The usual plan
was again followed and he actually vic
the same firms that had been sWindled
through his previous dealings.
Ihe goodS shipped 20 Donaldson
Frank a. Co. at Hampton were reshipDed
10 NoFIolk. where they were disposed
or I'm such large quantities and at such
low prices as 10 seriously affect the
trade of the city.
Donaldson Arrested and Convicted.
While at Phoebus. Donaldson laid
nIHnE fs o
Newport News under the name of Wal
lace. Wieth d Co. and was beginning TO
receive goods under this name when the
matter was placed in the hands Of the
Postofrice Department for investigation.
Tho Inspector soon obtained sufficient
evid nee 10 cause Donaldson's arrest
and con ction. and he was taken into
custody I the warehouse OF the Old
Dominion Steamship Company, at Nor
folk. while in the act OF signing for a
large consignment Of veterinary SUD-
piles llat had been shipped to him un-
der the name or Donaldson. Frank &
Co.. of FhCehus, and which he had re-
shipped 10 himself AT Norfolk as Wal
lace, Wisth q Co.
Being unable % give bond he was sent
10 jan, and was later convicted and sem
fenced 90 serve eighteen months IN the
penitenuary AT Atlanta. Ca.
Method of Operation.
The scheme adopted by Donaldson and
Powell To defraud the wholesale gro,
Gerry houses was orducted in q rather
shrewd manner. After deciding upon
the town from which they intended 10
operate, they would rent a storero0n.
have attractive letterheads printed with
the firm name resembling that of some
prominent man or firm in the town. rem
lock box at the p9stoHice, furnish
plausible statements as 10 their husI>
ness standing. and a-teT obtaining large
quantities of goods, which were never
paid for. the same would be reshipD-d
10 Norfolk. and There sold for compare
lively rritiuE amounts They ordered
almost anything in the line of bust
ness they We're supposed 20 ue con-
dJc-us. and furnished such c0nvinclne
statements concerning their business
standing I'm the various communities ia
which they operated that many firms
were easily victimized. The p1stofric6
Inspector found I'm the warehouse az
NorlI.E goods consigned 10 Wallace
Nieth a CO. from one OF the firms that
had nCen defraUjed several times bv
tals same pair, and the goods were later
returned 20 the "OnsignCT.