The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1907-11-21
How to Sm "Sure 7hings''
Crafty Investment Swindlers Who Prey Upon the Credulty
of the Laborer to Defraud Him of His
Hard Earned Savings.
BY ROBERT B. ARMSTRONG,
Former Assistant Secretary Of the Tt Treasury.

The cleverness and boldness with
which the up-to-date investment swim
dler plies his craft are almost incred-
ible. Wherever you find a fraudulent
investment scheme you will find both
of these elements present in some de-
gree-but the comparative proportion
OF q to the other is generally deter
mined by the element of time of opera
ton.
For example, If the projectors of a
scheme are old hands at the game and
have established records of the wrong
sort, then the idea of quick results is
not only attractive but often impera-
tive. There are many "old offenders"
in the profession of investment swim
ding who have been convicted and
have done time" in jails and peni-
tentiaries but have not yet learned to
prefer straight to crooked finance.
Men of this character realize that a
quick getaway" is a cardinal essen
tial of success; they must complete
the transaction and get in the harvest
before there is time for the public to
wake up and do any investigating.
Consequently, holiness is the big ele-
ment in operations Of men of this
class. And, although they may be i'm
mensely clever, daring rather than
cunning will be the dominant char
.acteristic Of their scheme.
The length to which the holder spir-
it's in this class will go almost sur
passes credibility. Here is an example
of the tricks to which they will resort
in order to create the impression of
having the backing of men or institu-
tions of strength and character:
Through introduction by social
friends the local representative of an
investment scheme was able to open a
checking account with a banking and
trust company in a big city-a com
pany of so high a standing that it is
very widely known outside Of financial
circles and among people of small
means. Its endorsement was worth
ready money to any enterprise and
the fact was keenly appreciated by the
fiscal agents" of the Brite & Fair
Bonanza company.
After the opening of his personal
checking account, the fiscal agent lost
no time in cultivating the acquaint'
ance of the trust officer of the bank
ing institution, which did a very large
business in the discharge Of trusts
N-& Ja1r thu 1orNcif0r no mo RI fhic ~
ficer and explained that he had a very
simple little trust which he wished to
have executed. Finding it necessary
to leave the city for a few days he
wished to provide for the delivery Of
a sealed package, containing valuable
papers," to a man whose name and
personal description was given. The
person to call for the package would
leave a certified check, in the amount
of $1,000, which was to be placed to
the credit of the fiscal agent" of the
Brite & Fair Bonanza company, whose
business connections we're unknown
to the trust officers of the banking
and trust company.
Weeks later the trust officer was as
tonished to receive from an old per
sonal friend, who vas knocking about
in the west, a circular of the Brite &
Fair Bonanza company, in which the
big trust company was designated az
trustee" for the "B. & F." stocks
AS the friend who forwarded the cir
cular knew something Of the wildcat
nature of the Brite & Fair enterprise
his comments on the folly Of the
banks accepting such a trust hat
an edge on them. When the matter
was investigated it was found that
the whole, plot had been carefully con
cocted and worked up to; that the cir
culars had been printed and put in di
rected envelopes ready for mailing IL
advance of the placing Of the so-callet
trust" and that when the trust Off
Ger Of the solid financial institution