The silver messenger. (Challis, Idaho) 1890-1912, 1908-03-03


though the scheme was in operation
only few months it took in over
$2,OOO,OOO. In the mails of the day
on which Post Office Inspector Stuart,
oil Chicago, enforced the fraud order
against this swindle more than $i5,.
700 in post Office money orders alone
was received at the Fund w" Office.
The check books of the concern
showed that this money with that re.
ceiyed in other forms of remittance
was to be used to pay a dividend"
amounting to $4,000. A further ex
animation into the affairs of the
swindle established the fact that the
current receipts from victims were
used right along to pay dividends
without any regard whatever to any
deals on the board or any profits
therefrom-and these dividends
were put out where they would do the
most good in stimulating those who
received them to increase their in
vestments" and to spread the news OF
this quick and easy road to wealth
among neighbors and friends. Some
of these so-called monthly dividends
amounted to more than IL per cent.
Here was actual fulfillment, moi
promise! When the victims cashed
those dividend checks" and founo
that they were honored, any misgiv
ings they had harbored disappeared
and they felt that their financial flu
ture was more than assured. They
showed these remittance letters to
the friends they wished to favor and
this process multiplied the victims in
a cumulative ratio besides drawing a
big increase of investments" from
the original victims. OF course the
number of the earlier victims was
very small in comparison with the
crop which this cumulative process
of culture developed when once the
effect of the stimulant was realized
| from a broad territory. Therefore
it mattered little if the first or orig
inal crop of victims received a total
of dividends" amounting to their
original investment with a good profit
added. So long as new victims null
tiplied in numbers with each incom
ing mail and the older ones added tc
their speculative contributions the
dividend" game could be played witt
impunity.
Investors" by the tens of thou
sands poured an ever-increasing vol
ume of money into the treasury o.
this infamous get-rich-quick swindle
and when the postofice department
shut down the iron gate of the fraud
order, thousands of angry letters o
protest were sent to the head o
the department at Washington. Thes
protests demanding the inspectors re
moval were so strong and carried ev
idence of actual profits so plausibl
that the postoffice inspector was sum
= moned to Washington to explain tn
= situation. The only explanation
| which he made or needed to max
was to produce the proofs that tn
concern had been paying dividends
from moneys received as investments
not from profits actually earned. H
was told to go back to his work. Sui
seduently the case was turned owe
to the department of justice for GRIN
inal prosecution and the men in tn
swindle-or at least some of them
were convicted and sent to the pen
Tertiary. But the work of these swir
dlers has lived after them in tho,
sands of other schemes fashioned o
, the pattern of the Fund w" in ever
essential feature
: OF course variations in almost il
. finite number have been devised, an
0 some of them. possess degree of r.
( finement which makes their likenes
o to the original difficult to distinguish
a 3ut the possible investor will do we
e IN consider that the actual paymeI
k of or the promise to pay an excessi'
d rate of return is sufficient ground IL
e the suspicion that the scheme
questionable and should be sifted
the bottom before any money is pV
9 into it.
;. This nation has enjoyed long p
o riod of unexampled prosperity. AS
4 result, thousands of men who a fe
+ wears ago were either poor or on
: moderately well-to-do have becon
comparatively wealthy and ha'
i made more money than they need
7. the operation of their regular bus
# nesses. In fact, there is a great mi
d titude of these new capitalists WI
! have retired from their former occur
!. lions to live on their money.
a. This means that everywhere the
is an accumulation of capital seekil
investment at reasonable rates, al
the man who has proposition viii
{ is essentially sound has only to ma
"A proof of this fact in order to co
! mand all the money needed wheth
{ the enterprise requires millions
9 only thousands. He has no need
Il deluge the mails with circulars a
: form letters making appeals to It
i people" to come in with their saving
Q If his enterprise has real substance a
I bottom he can get the money from
i few capitalists with less trouble tn
i is required to write one set of cirt
!, lars and form letters. And he dc
II not have to promise big monthly d
: idends" or anything of the kind. O.
~ | xybon