The Carlisle independent., 1908-01-16

false prospectus. Some of our courts have held that the issuing of a false prospectus is a scheme to defraud within section 54S0 of the United States revised statutes. Other courts however, hold to the contrary; but whether by judicial interpretation or by legislation, it is absolutely essen. tial that the issuing of false pros pectus be made a crime before 1t is possible to deal effectively with the largest class of swindlers that now prey upon the public.
 While the United States govern. ment cannot directly prosecute schemes to defraud, yet, if the mails are used in the furtherance of the scheme. the government can act As most of these schemes contemplate the use of mails, it is possible for the government to proceed against them under sections 54S0 and $40 of the United States revised statutes Sec tion 5480 provides that whoever de- vises scheme to defraud and pro- notes it by opening correspondence through the mails. shall be guilty of misdemeanor; section $40 provides that II two or more conspire to com init the offense denounced in section 54S0. they shall receive a still great. CT punishment.
 Acting under the authority given by these two sections, the post office de- partment and the United States dis trlct attorneys office for the northern district of Illinois have for years Waged vigorous and relentless war against all swindlers who make use Of the mail service. The task present ed the authorities is a difficult one In the first place, where the mails have been used, the victims are wide ly scattered, and it is difficult to know who has been swindled, and the gov ernment must choose it's witnesses rom those who happen to make com. plant. These witnesses are scattered from Maine to California. It is neces- sary to bring them here for the pre- llminary 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, it is necessary for the attorney who draws the indictment to go 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. If the law could be amend ed as above suggested, undoubtedly the government would be able to reach and suppress a 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 little money, and hopes for large and immediate returns from it. It seems that there is nothing so extravagant, so improbable. that the people will not believe it. If the stock n bol 1l earning the dividends which these promoters represent that it 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 a 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 it 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 it 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 it possible that a good safe investment would be so handled when so much money is lying idle ready for good investments in inc hands of men Whn are cnmna-