The Brandon news. (Brandon, Miss.) 1892-1961, 1907-10-03


tie bit worn out" said an old de-
tective to Sun reporter. Just now
it's the mining game that the authori-
ties are up against, and you can take
it from me that they are up against
1t good and hard"
The detective has made a reputa-
ton for himself working for the
United States Government and did
more to stamp out the green goods
game than almost anyone else in the
business. What he said about the
mining game Is echoed by almost ev-
cry one whose business it is to pro-
tect the public from the man with
the misleading prospectus and a sup
ply Of nicely Autographed stock GER
tificates.
To people who have put their mon
ey into the hands of the man with
the pretty prospectus only to hear no
more from it or the mine it may
seem little strange that the authori-
ties, Federal and local, have not
stepped in and tried to stop the
stream of cash that has flowed from
the pockets Of the people of this
country into the hands of some of
these INSCRIPTIONS mining promo
ters.
There are several reasons why
they haven't. In the first place, ac-
oording to those who ought to know,
there is no investigation more expen-
sive than that of running down a
fake mining concern selling in one
corner Of the continent stock in q
mine supposed to be in another cor
ner 5000 miles away. 1t takes thou
sands of dollars, months Of time and
q man specially equipped for this
kind Of work. a man with brains and
ingenuity possessed by few detectives
even among those employed by the
Government.
Another reason is that the laws of
the States are at fault in not put
ting restrictions around the COM
panies they create In few cases
where such swindles have been ex-
posed and the swindlers convicted
the punishment has been light as
compared with the outlay necessary
to secure conviction.
Some years ago, before the discov-
cries in Nevada and elsewhere that
have given such an impetus to the
promotion of mining companies, le-
Ultimate, the Government did get af-
ter one man who had launched a min
ing company up in the Northwest and
was selling stock to the public by
the barrel. The company was not
only advertising by pages in the
newspapers of the country, but it
was sending all sorts of literature
through the mails.
One of the best postoffice inspect
ors in the employ of the Govern
ment was at that time stationed in
Chicago. He was put on the case and
told to find out whether the Govern
ment had any right to issue a fraud
order and arrest the promoters. The
mine was in region almost mac
cessible. 1t took this detective al
most one whole year before he had
discovered enough evidence upon
which to make an arrest. In that
time he had travelled hundreds of
miles on horseback and on foot, had
engaged experts and looked up min
ers. He finally found that the COM
pany had been organized and had
sold stock before it had any mine or
mining claim and that few hundred
dollars of the proceeds of the sale of
stock had afterward gone to secure
an option on a claim pronounced to
be worthless. That was all there was
to the $1,0O0,00O mining company
whose stock had been distributed
broadcast. The investigation cost
the Government $17O0 and the chief
promoter got just two years in jail.
Now and then the postofice in
spectors do step in and mining COM
pany goes up the spout. In nine
cases out of ten the investigation pre-
ceding this action by the postoffice
authorities has been many months.
and by the time the proper evidence
is secured much stock has been sold.
Not until they hear of the action taken
by the inspectors in stopping the
mail and arresting the promoters do
the people who have bought this
stock and parted with their savings
wake up to the fact that they have
been deceived.
According to the authorities, there
probably never was time when there
was SO many schemes afioat which
would bear Government investigation.
This is due to the new discoveries of
ore in many sections of this country,
Canada and Mexico. One reason why
more are not investigated, they say,
is because there aren't enough in
spectors to do the work. All told
there are ESQ postoffice inspectors
scattered over the country. Their
work includes running down mail
thieves as well as swindlers. In fact,
the protection of the mails from
thieves is their first duty ordinarily.
Protecting them from fraudulent use
comes next.
In the large cities there are from
six to ten inspectors, but of these
not more than two can be assigned