The Greeley tribune., 1908-03-05
whether by judicial Interpretation OF


largest class OF swinulers '"at nv"
prey upon the public.
While the United States govern
mcnt cannot directly prosecute
schemes to defraud, yet II the mails
lre used in the furtherance of the
I scheme the government can act AS
most OF these schemes contemplate
rbe use of mails. 1t is possible for the
government to proceed against them
under sections $3.50 and 5440 of the
ruited States revised statutes. Sec
| Ion $3.50 provides that whoever de-
,ises a scheme to defraud and pro-
notes il by opening correspondents
/ through the mails. shall be guilty OF
a misdemeanor; section $40 provides
/ that If two or more conspire to com.
/ mit the offense denounced in section
| $3.50, they shall receive still great,
pr punishment.
Acting under the authority given by
TIesc two sections, the post office de
| nartment aud the United States dis.
| rrlct attorneys Office for the northern
district of Illinois have for years
naged a vigorous and relentless war
against all swindlers who make use
ut the mail service. The task present
ed the authorities is difficult one.
In the first place. where the mails
have been used. the victims are wide
~ scattered and it is difficult TO know
who has been swindled, and the gov
ernment must choose its witnesses
from those who happen TO make com
plant These witnesses are scattered
from Maine to California 1t is heces
sary Il, bring them here for the pre-
limiuary hearing. then for the grand
Jury session and once more for the
trial of the case Much labor and ex-
pense are necessary.
Then, too. ii Is necessary for the
attorney who draws the indictment
TO so through correspondence and the
various conversations with the great
est care in order that he may analyze
the scheme and determine exactly in|
what the fraud consists, so that the
indictment may be accurately drawn.
Then at the trial of the case. the gov
ernment is. perhaps. confronted with
the fact that the scheme has been SO
cleverly devised that direct intent to
defraud is impossible OF proof, and re-
sort must be had to circumstantial
evidence
The records show, however, that
the government has very seldom lost
a case of this kind. and that swindlers
and confidence men stand in the
greatest fear of the federal authorities
because of the vigor of prosecution in
the past. II the law could be amend.
ed as above suggested, undoubtedly
the government would be able to
reach and suppress large majority
of the schemes to defraud that are
now operated from this city.
One of the surprising things in
connection with this subject, is the
credulity of the average person who
/ has saved httle money. and hopes
for large and immediate returns from
1t 1t seems that there Is nothing SO
extravagant. so improbable. that the
people will not believe it. III the stock
OF any company had any chance OF
earning the dividends which these
promoters represent that 1t will, OF
course it would be subscribed and
over-subscribed for at once by the big
moneyed men. and would not have to
be peddled around at absurd prices
often as low as ten cents share.
When this is suggested to the promo.
ter, he always states that the big
moneyed men are trying to get hold
OF the stock, but that 1t is not desired
that they should have it, because they
would then come into control of the
property; and the victim swallows the
explanation.
The swindler usually has a confed-
crate to whom he refers the victim
who wishes to learn about his stand
ing and integrity; and 1t seems the
victim rushes right to this confeder.
ate instead OF going to banks or busi.
ness men and making inquiries from
| people upon whom he could rely.
Every prospective purchaser should
stop and ask himself the question:
"Why Is this stock being peddled
around in this manner? Is 1t possible
that a. good safe investment would be
10 handled when SO much money is
| lying idle ready for good investments
! In the hands Of men who are compe.
/ tent to pass upon the safety of an
| Investment? Who are the men back
| of this scheme and what are their an
tecedents? At what banks, or at what
| established business houses are they
| known, as honest. conservative men of
| business
or course, the swindler has his
| plausible answer to all these ques.
| tions, and the victim takes his explain.
! alton without making a thorough ad.
| ditional investigation
Copyright, by Joseph h BowiesJ
Rare Coin to Be Sold.
! The sale of the rare Miners bank"