Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-18
FRAUDULENT CONCERN
POLICE OPINION OF FEDERAL IN
VEsTMENT COMPANY.
Solicitor Placed Under Arrest-Hear
ing in Police Court Continued
Until Next Thursday.

mereial Investment Company, who was ar
rested yesterday by DEF eetives Father and
Pratt upon a charge. OF false pretenses,
vas COZ tinued in tn. United States branch
OF the UlicC Court today until August %.
Bond was fixed at $50. 1t was stated at
the office of the assistant United States
attorney in the Police Court building tina:
the continuance was directed to allow the
detectives time to investigate some of the
business transactions of the defendant. 1Ac-
cording to the police, the Federal CONNER
cial Investment Company Of Philadelphia.
with branch offices in this city, was a
fraudulent concern. 1t is added that the
arrest last evening of Mason will bring
TO light the names of long list of local
residents who have been defrauded by the
company.
When Mason was placed under arrest al
MS home in the northwest section of the
city, the detectives say, he told them that
the company was only recently preparing
TO launch gigantic scheme to victImize
the people of the city, when the death d.
William G. Rothermel, the treasurer, dis
arr anged the plans.
Search of Residence.
Immediately after Mason's arrest De-
tectives Father and Pratt made a sys-
tematic search of his residence, and, it is
ee@sCos lceteIS were 1Ounu, among OlNer eI-
fects. addressed to F. H. Taylor, the absent
Washington agent Of the concern. 1t is
added that the letters in question bore the
signature Of George H. Graves as the d.
rector or agencies of the company Easy
marks were to be seen, according to the
letters, and from the line of dictation as
given by the director of agencies the har-
vest was waiting to be reaped, and might
be spoiled If not gathered promptly. The
organization of new company was the
plan set forth, and the sale of stock was
to be on the tongues of the agents all the
time. They were to talk stock on all &C.
casions, and the easy marks pointed out
were stated to be good for from $4,000
worth Of stock up.
According to the instructions to be given
the agents they were to sell as much as
possible and then fill in the bond" and
deliver it for cash. They were to "fll in"
as much as the customer was willing to
purchase. Women were mentioned as
among the easiest of marks"
When the case is called for hearing in
the Police Court next Thursday, Detectives
Flather and Pratt say they hope to have
much evidence in hand.
According to the information filed this
by the detectives Mason is ac-
cused of false pretences, 1t being alleged
that August Is he represented to B. F.
Pope that he was the agent of solvent
cial Investment Company" and that be-
cause of such representation he obtained
81.
Knew Of Several easy Ones"
The letter from Graves, the director of
agencies, 1t Is stated, announced that the
writer knew of several easy ones" in
and that within short time
he would come to this city to personally
inspect the field and to call upon those
with whom he believed that some of the
business could be transacted.
The expected trip was not taken, it is
believed, because of the fact that the Wash
ngton agent failed to show up at his
office here Monday morning. Since that
time the place has been closed.
1t is stated by Pope that Mason offered
10 him bond scheme which seemed to be
1 first-class investment 1t was apparently
Ill in favor of the investor. A bond for
per cent interest, 1t was stated, could be
purchased for weekly payments of 81 each.
The allegation, 1t is said, was made by
he agent that the money paid in could be
at the end Of a year IL the In
vestor SO desired, plus interest, upon sur
render Of the bond. Most alluring to those
who were urged to hold the bonds until the
end was the alleged statement Of the agent
that they would receive. in addition to
their capital invested, with the accrued
interest, q certain amount of extra divi-
lends. The amount was not specified, but,
It is said, was to be distributed according
When Mason was searched at police
papers were found upon him,
the detectives state, which go to show that
he sold investments of the company to
several Washingtonians during the past
week.
Mason's salary, according to a statement
which it is stated he made to the detectives.
was $40 a week, but out Of each dollar
which he collected, it was added, he would
receive 20 cents. the remainder Of the dol
ar going to the Washington agent Of the
company.
Looking for Additional Evidence.
All of the books and papers Of the COM
pany that were at Mason's residence at the
time of his arrest were taken to police
and are being examined in the
hope Of securing additional evidence against
Mason and the others of the company.
Inspector Boardman bases his belief that
the company was one of the most pronounce
ed frauds within his knowledge. The So
licitors received 70 per cent on each dollar
collected. The view of Capt. Boardman is
that the only ones who had any chance OF
ever getting anything were the officers OF
the company and the solicitors, the chances
sooner than the officers.
B. F. Pope, whom the detectives allege IN
the information filed in the Police Court to-
day was one of the investors in the COM
pany, stated that he was induced to invest
by the advice of one of his friends who
was an investor and that the friend had
stated to him that the company was
and the stock was fine in
vestment
Pope had paid in about $14 and says he
was of the opinion that the time had ar
rived for him to stop the payments. He
had notified the detectives Of his fears and
t had been arranged to arrest Mason when
he appeared to collect from Pope, but the
were changed and Mason
was placed under arrest last evening at
mis- residence.