The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-08-13
EDWARD A. VAUGHAN
HAD GREAT SCHEME
Graft Was Successful TIL
Grandma Died"
FRAUDULENT USE OF MAIL
Donaldson and powell Used United
States Mail to Defraud Whole
sale Grocery Firms Through
out Country.

out Country.
Washington. August 12-tSpeeial.)-D
cember 20. 1904. Edward A. Vaughan APP
peared at the Germania bank, minneapo-
lis, with two or three companions, and
deposited 5000 in his own name advising
the officers of the bank that he was
about to start grain brokerage business
in the city. He then rented offices in the
Guaranty Loan building. one of the I'm
est office buildings in Minneapolis, pur-
chased expensive office furniture from a
local dealer on the monthly payment plan.
installed telegraph service and employed
competent telegraph operator, also a stem
ographer
Printed circular matter, describing the
business containing Vaughan's likeness,
pictures of the building in which his Of
fee was located, scenes n Minneapolis,
etc, bearing the name of Edward A.
Vaughan, commission broker, were sent
flee was located, scenes in Minneapolis
and mailed by Vaughan in the Mime
apolis postoffice. From $4,000 to 100000
copies of the first pamphlet called
Wheat" We're mailed early In January,
1905. These were followed by thousands
of other circulars telling of Vaughan's
experience as business man, and brok-
er, requesting the public to send him sums
of money with which to purchase wheat
and guaranteeing large profits. All the
literature was attractive, racy and bore
evidence of the authors knowledge of the
grain and commission business. He also
sent out faesimiles of letters-references-
in large numbers, purporting to be from
bankers in Chicago, Washington and Min
neapolis; others purporting to be from
former customers in all parts of the
country, and from many men high in
public life, such as United States send
tors, representatives. army officers and
postmasters. Actual business relations
with reputable Minneapolis grain deal
er were commenced. Through him some
grain was actually bought and sold and
in few instances small profits We're re-
mitted to customers. He purchased two
columns of space in one of the local daily
papers-the Saturday issues-in which his
market review appeared. and approx
mately 100000 copies of this paper were
sent by mail throughout the United States
and Canada.
Plans Carefully Laid.
The whole scheme was most carefully
and ably planned and artisticafly execut-
ed. BY April /, 1905, three months after
arriving in Minneapolis, Vaughan and his
associates established, through their lit
erature, and by correspondence, a certain
| standing with thousands of people
| throughout the country 1t was their plan
| to keep the business in operation, or
rather to remain in Minneapolis, until
May 10, 1905. On April a typewritten
letter bearing Vaughans signature was
gotten out. Copies of this were sent to
thousands of addresses 1t was after
wards named the Monster Melon letter
This conffdentially advised the addressee
that big wheat deal was on" which
would be consumated May 10; 200 to 800
per cent profit was guaranteed. Mr..
Vaughan has inside information" and
wanted everyone to get a Slice of the
Monster Melon He would receive re-
mittanees in sums of not less than $500
to operate in his own name. His remuner-
alton was to be % per cent of the profit
With these letters pictures of his Min
neapolis residence and terminal facilities
were sent, conveying evidence of his pros
perity; they were, In fact, pictures of a
SIS, 600 residence and an immense grain ele-
vater in Minneapolis owned by Others
Many apparently believed what they
read, as about April or s remittanees be-
gan to arrive by mail, express and tele-
graph, $4,000 to 5000 being received by
Vaughan daily.
The Board of Trade and bankers be-
came suspicious and reported their sus-
pefons to the postmaster. who consulted
the inspector. 1t was decided. ON the
morning of April 70. to require Vaughan
to identify himself; letter mail was not
sent to his office that morning by the
carrier. An inspector called during the
forenoon and inquired for Mr. Vaughan.
He was informed by a gentleman in the
office that Vaughan was then on his way
from Chicago and would arrive about
noon; this man did not return after lunch,
and Vaughan never arrived. The scheme
had collapsed.
Vaughan, who was arrested In Denver
January 90 1906. testified at his trial In
Minneapolis, the 9th of April, that he
was In Winnipeg Canada, April - Of
last year. On that day he received a tele-
gram from his eonfederates in Minneapo-
lis, which read: Grandma is dead"
meaning that the scheme was abandoned
and that those interested in 1t had fed.
He was convicted by jury, sentenced to
fifteen months imprisonment in the state
reformatory, st. Cloud, Mimi, and fined
$500.
1t is believed that from $40. 600 to $50. 600
was received by Vaughan and his asso-
ciates as a result of this scheme Seven
or 800 letters addressed to Mr.. Vaughan.
the majority of which contained sums of
500 and upwards. received after the mail
was held by the postmaster. April 49, 1906
were either returned to writer's or sent to
the dead letter office marked 'fraudu-
lent" by order of the department
Defrauded Grocerymen.
For using the United States mails to
defraud the wholesale grocery firms
throughout the country, A. Donaldson and
j. b. Powell two notorious swindlers. are
now serving terms in the Atlanta peni-
Tertiary. For over year previous to
their arrest and conviction. Donaldson
and Powell conducted a rather unique
scheme to obtain money through fraudu-
lent means. and the successful efforts of
the postal authorities in putting an end
to their operations will undoubtedly result
in saving to a number of wholesale gro
Gerry houses large sums of money.
Donaldson and Powell began business
at Smithfield and Newport News. Va,
under the firm name of F. II. Carr & Co..
as wholesale grocers and general mer-
ehandise commission merchants. After
obtaining price lists and catalogues from
well known wholesale houses they in
dueed many of the firms to ship large