Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-13
graph. 5000 to $500 being received by

graph $o,OUU TO $o,0VO pelng received py
The board Of trade and bankers became
suspicious and reported their suspicious to
the postmaster, who consulted the in
spector. 1t was decided on the morning OF
April II to require Vaughan to identify
himself; letter mail was not sent to his Of
nee that morning by the carrier. An in
spector called during the forenoon and in.
CURED for Mr.. Vaughan. He was informed
by 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 ar
rived. The scheme had collapsed
colorado: January 20. 1905, testified at his
he was in Winnipeg, Canada, April 12. Of
last year On that day he received tele-
gram from his confederates in Minneapolis
t wnicn read; Grandma Is dead" meaning
those interested in it had fed. He was con-
vlcted by jury. sentenced to fifteen
mon. imprisonment in the state reforma-
tory, St. Cloud, Minnesota and fined $500
1t Is believed that from $40. COO to s6O. 600
was received by Vaughan and his associ-
a!es as result Of this scheme. Seven or
S1gns hundred letters addressed to "Mr.
sums OF 500 and upward received after
the mail was held by thespostmaster April
II, 1910, were either returned to writer's or
sene TO the dead letter Office. marked
fraudulent" by order of the department..
OOAdAuSOu anu EOWeu.
For using the United States mails to de-
fraud the wholesale grocery firms through
out the country, A. Donaldson and J, B.
fo"eu' two notorious swindlers, are now
serving terms in the Atlanta penitentiary.
FOR over year previous to their arrest
ana conviction Donaldson and Powell con-
quoted g rather unique scheme to obtain
money through fraudulent means, and the
ssuccessiuI enorts of the postal authorities
ia putting an end to their operations will
undoubtedly result in saving to a number
OF wholesale grocery houses large sums of
money. 00AiA0 VI
Donaldson and Powell began business at
t tha a and Newport News, Va, under
the nrm name of F. H, Carr & Co. as
wholesale grocers and general mercha ndise
commission merchants. After obtaining
price hsts and catalogues from well-known
Wholesale houses they induced many of the
firms to Ship large quantities Of goods tn
them at Smithfield, from which place the
goods were reshipped to Newport News.
Norfolk and Berkeley, Va, and there sold
at rlolculously low prices. This scheme
was continued until the creditors began
pressing for their money The business of
+. II. Carr & Co. was then discontinued.
out NOT the operations OF the swindlers
composing the alleged firm. They resumed
business at Hampton Va. under the name
OF II. D. Worthington & Co., and, pursuing
the same methods as at Smithfield and
Newport News. were equally successful in
pAoS AAh6 6oouo. LIE IueTCnanQlS6 was
reshipped to Norfolk, and there sold for
mere pittance as compared with it's actual
value.
While Donaldson carried on the fraudu-
lent business In Virginia, Powell conducted
similar enterprises in Raleigh, N. c., I'M
der various names. Through evidence OBJ
tanned by post office inspector, however
Powelfs operations were discontinued, and
In June, 1905, he was convicted and SEN
fenced to serve two and one-half years in
the penitentiary and pay fine Of $500 and
costs. The arrest and conviction Of his
partner In crime did not appear to discon-
he began business at Pnoebus, Va, under
the name of Donaldson, Frank & Co.,
wholesale grocers. The usual plan was
again followed. and he actually victimized
that had been swind1ed through his pre-
vious dealings. The goods shipped to DON
aldson, Frank & Co. at Hampton were re-
shipped to Norfolk, where they were dis
such low prices as to seriously affect the
trade of the city.
Worked Under Another Name.
While at Phoebus. Donaldson laid plans
to operate on a large scale at Newport
News under the name Of Wallace, Wieth B
Company, and was beginning to receive
goods under this name when the matter
was placed in the hands of the Post Office
Department for investigation. The in
spector soon obtained sufficient evidence
to cause DOnaldson's arrest and conviction,
and he was taken into custody in the ware
house of the Old Dominion Steamship Com
pany at Norfolk, while in the act Of sign
ing for large consignment of veterinary
supplies that had been shipped to him I'M
der the name of Donaldson, Frank & Com
pany of Phoebus, and which he had reship-
ped to himself at Norfolk as Wallace, Wieth
& Company. Being unable to give bond.
he was sent to jail, and was later convicted
and sentenced to serve eighteen months in
the penitentiary at Atlanta, Ga.
The scheme adopted by Donaldson and
Powell to defraud the wholesale grocery
houses was conducted in rather shrewd
After deciding upon the town
from which they intended to operate, they
would rent a store room, have attractive
letter heads printed with the firm name |
resembling that Of some prominent man or
firm In the town, rent a lock box at the |
to their business standing, and after OBJ
tanning large quantities Of goods, which
were never paid for, the same would be re- |
shipped to Norfolk, and there sold for |
comparatively trifing amounts. They or
dered almost anything in the line Of busi-
ness they. were supposed to be conducting, |
and furnished such convincing statements |
their business standing in the |
various communities in which they operated |
that many firms were easily victimized. The |
house at Norfolk goods consigned to WAL |
lace, Wfeth & Company from one of the |
firms that had been defrauded several times
by this same pair. and the goods were |
later returned to the consignor.
Postmaster Padded His Reports.
The inspector in charge Of the Chatta- |
nooga division of post Office inspectors, re-
ported. January 81, 1905, to the department |