The commonwealth. (Greenwood, Miss.) 1896-1923, 1908-01-24
How TO SH "Sure Things"
Crafty Investment Swindlers Who Prey Upon the Creduhty
of the Laborer to Defraud Him of His
Hard Earned Savings.
BY ROBERT 3. ARMSTRONG,
Former Assistant Secretary Of the Tr sagur,.

~ 'F''Fl u'06 anu HDIulfHb Will
which the uptodate investment swim
der plies his craft are almost incred
ibl" Wherever you find a fraudulent
investment scheme you win find both
of these elements present in some de,
gree-~but the comparative proportion
OF n To tne other Is generally deter.
mined BY the element of time OF opera
tion.
For example, II the projectors Of n
scheme are old hands at the game and
have established records Of the wrong
sort, then the idea Of quick results Ia
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 iallB and peni.
tcntiarles but have not yet learned to
prefer straight to crooked finance,
Men OF this character realize that a
quick getaway" is q cardinal essen.
tial OF success; they must complete
the transaction and get IN the harvest
before there is time for tho public to
wake up and do any investigating,
Consequently, boldnoss Is the big Gle
ment in operations of men of this
class. And, although they may be i'm
mcnsely clever, daring rather than
~cunuin. will be the dominant char
uc.eristic of their scheme.
nj. I,vyth "a uhf,h thn hp11pr gpiP.
it's Ia this class will go almost sur
passes credibility, Hero Is an example
Of the tricks to which they will resort
In order to create tho 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 q big clty--a com
pany of SO high n standing that IL Is
very widely known outside OF financial
circles and among people of small
means. Its endorsement vas worth
ready money" to any enterprise and
the fact was keenly appreciated by the
fiscal agents" of the Brite a Fair
Bonanza company.
After the opening Of his personal
checking account, the fiscal agent lost
no time In %cultiyating the acquatnt
ance OF the trust officer of the bank
ing institution. which did a very large
business In the discharge Of trusts,
One day the deposition came TO this Of
hcer and explained that he had a very
simple little trust which he wished TO
have executed. Finding II necessary
10 leave the city for a few days he
wished to provide for the delivery o.
a sealed package. containing valuable
PAPERS" to q man whose name and
personal description WIS 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
prlto & Fair BONANZA company huf
business connections were unknown
to the trust officers Of The banking
and trust company
Weeks later the trust gGcgy SGy ~.
tnnished to receive from ~ 90 per.
sonal friend. ahc was kuoc 8pF z1l1t
in the west. a circular o. tire NFsie d
Fair Bonanza company, 81 vhaca the
big trust company Was oeE1gasct as
trustee" for tho ~ a. stocks
AS the friend who fofsatdsd The cir.
eular knew something Of The wildcat
nature of the Brite L. Fair enterprise.
his comments on the folly Of the
banks accepting such a ~tr81i" had
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 aud put In di.
rected envelopes ready for mailing In
advance Of the placing Of the so.called
trust and that when the trust on.
Ger of the solid financial Institution
had given his receipt for the sealed
package said to contain valuable pa,
pers." a telegram had been sent by
the fiscal agent 10 mail out trustee
circulars The man In this scheme
of course believed that. as the circu.
lars were being mailed out into a ter.
ritory about a thousand miles from
the city In which the banking and
trust company was located the trust
onioer who had been imposed upon
N s-..I ----
Would never hear Of the misuse Of his
receist for a dummy package which
actually contained certificates of the
mining company's stock.
Why did the men who worked this
scneme 70 steal the moral support OF
we big trus. company 80 to SO great