Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1908-01-04
FINANCIAL, FRAUDS
AAo" 'ile 'ia1is OF the Country Are Delayed with
Schemes to Squeeze the Savings from
People of Small Means.
By GEORGE B. CORTELYOU
Secretary of the Treasury

There is no work under the iurisdic
ton of the United States post offic,
department which presents more diff
hculty to its officials than the admin
istration of the law relating to the de
lection and suppression of the swind
lers who use the United States mails
to prosecute a guerilla warfare upor
the people of this country-and espe
ctally upon those whose industry and
thrift have enabled them to put by a
little surplus against the inevitable
rainy day"
| have been asked to say a few
words on the subject of financial
frauds that operate through the mails,
and take pleasure in responding to
such request in the hope that what
shall say may have the effect of pre-
venting some Woodworking and thrifty
person, who has contrived by dint of
self-denial to save up a little surplus.
from falling ready prey to the hun
dreds of schemers who are living by
their wits and making fortunes from
honest but credulous individuals.
Perhaps the most important thing
to the possible victim is to know what
are the most common characteristics
OF fraudulent schemes-the Signs" by
which those familiar with their opera.
lions recognize their fraudulent char.
acter.
One of these earmarks is the prom
Use of excessive profits or dividends;
another is the actual payment of ex.
oessive dlyidends-at the start! One
or both of these features invariably
accompany all such schemes. And in
the days when frauds in the mail are
numbered by the thousands and com.
petition for the spoils of the peoples
savings is almost as keen as it is in
legitimate lines of business, the throw. |
ing of bait in the form of several
large monthly dividends has come to
be regarded as a practical necessity.
There was a time when the mere
promise of big profits was enough to
insure a liberal response, but to-day
the use of dividend bait is regarded
as a necessary and highly profitable
investment on the part of those who
wish to secure the largest possible re-
turns.
The great Fund w" swindle, Cd.
Grated in Chicago in the early '9Os
may be cited in illustration of the
type. 1t is especially typical not only
because of its immense success but
because it has apparently furnished +,
The model upon which many succeed
ing frauds have been based. It is {
rue that many, perhaps most of the '
present day schemes are seasoned a
With the Investment flavor. rather a
nan that OF speculation, but the prin. S
iple OF their operation and appeal ia C
he same. This is the way in which II
he historic Fund w" was worked. U
Under the name of Fleming & Mer. d
lams Mutual Cooperative Fund w" Il
n appeal was made to the people to "
end tneir money for the purpose OF n
reating great centralized fund.- IN :,
g used in speculative operations in =,
rams, provisions and stocks on the II
'nicago board of trade and the stock q,
xchange-the emphasis being placed ~
the opportunities offered by the a,
GARD of trade -
In all the printed matter put out by M
lese clever swindlers the plea was N
ibstantially this; "The great for. N
mes Of the kings of the pit have In