The Irish standard., 1910-11-26
s40,000,000 IN
BIG SW|NDLE
TWO MINING, OIL AND WIRELESS
CONCERNS ARE RAiDED IN
NEW YORK.
WIRELESS AND MINES THE GAME
Four Promoters Arrested on Charge
Of Violating Postal Laws-Post-
Master General Leads
Raids.

/ New York. Nov. 22.-ln raids so i'm
portant that Postmaster General
Hitchcock took charge in person, his
inspectors fell on two concerns which
they charge with swindling the public
out Of more than 340.0O0,000 by fraud
ulent use Of the mails.
Sheldon H. Burr, president of Burr
Brothers; Eugene H. Burr, secretary
and treasurer of the firm. and Frank
T. Tobey, its vice president, were ar
rested in the first raid and held in
$4,000 bail each. The government
charges that the firm sold between
$40, 100000 and $50.O0O.0O0 Of mining
and oil stock worth little or nothing.
Charles l.. Vaughan, a director Of
the Continental Wireless Telegraph &c
Telephone company, incorporated in
Arizona, was taken in the second raid
and held in $4,000 bail. Inspectors
say his company has sold stock to the
amount Of at least 100000 which
has brought in no return to the in
vestors. Vaughan is treasurer of the
Columbia Finance company, which
acts as fiscal agent for the Continen-
q, tai Wireless Telegraph & Telephone
company, and had charge Of the Con-
tinental offices in this city.
Both raids are further evidence that
the government in its warefare against
alleged Interstate swindlers means
business and no longer will be con-
tent with issuing fraud orders deny
ing them the use of the mails, but will
press for conviction on criminal
charges. The present campaign began
some months ago and has resulted in
the arrest of Louis Celia and his asso-
ciates, charged with operating II
string Of bucket shops; the officers Of
the United Wireless company. the I'll
Frogresso Banana company, the Unit
ed Exchange Of Chicago, the Steele
Miller Cotton firm of Corinth, Miss,
and more than 60 other firms in all
parts Of the country.
Public Heavily FIeeced.
Postmaster General Hitchcock esti-
n ated that the public has been fleeced
out of at least 500, 1000 900 by get-rich-
quick concerns in the last five years,
but says their hey-day has gone. The
postoffice department under the pres.
cnt administration intends to keep
after them every minute and Post
master General Hitchcock said yester.
day that other arrests involving oor-
porations that have sought investors
the length and breadth Of tho coun-
try, are expected shortly.
The specific charge against Vaughan
set forth in the complaint Of William
B. Robinson, postal inspector, is that
IN June 4, 1910, he devised a scheme
to defraud Walter N. Altman of 2O01
Clay street, Topeka, Kan. and divers
Other persons, by fraudulent use Of
the mails. 1t is alleged that he falsely
represented that the Continental
Wireless was to operate and control
other companies, and would be in q
position to obtain immediate revenues.
Ambitious Selling Campaign.
Carter r. Keens, postal inspector,
told the story Of Continental Wireless.
The company was organized, he said,
in Arizona on October 1, 1909, with a
capital of S5,000.000, but did not be-
gin operations on large scale until
May Of this year. 1t obtained control
OF the Collins Wireless Telephone
company, the Pacific Wireless Tele.
graph company, the Clark Wireless
Observation-Disclosures company, and
the Massie Wireless Telegraph com.
pany. The Columbia Finance corpor-
alton was organized to market the
stock and an ambitious selling cam
paign was carried on all over the
country.
The Collins Wireless company was
organized in the District of Columbia
with q capitalization of 100000
The capital stock of the Clark com
pany was $50 1000, 900; that of the Pa
cific S10,000,000 and that of the Massie
100000
The purpose Of the consolidation, as
announced in booklet issued by the
Continental wireless, was to give the
company q wide field Of operation,
and to give investors an assured in.
vestment in "conservatively CAPT
talized corporation"
Had Big Prospects,.
"Ons Of the statements" said In.
spector Keene, read that by taking
over stations already established and
adding others at Pittsbu1g, ct. Louis,
Omaha, Denver, Salt Lake City and
Reno. a transcontinental service
would become possible"
In a circular sent out from the Con
tansntal Wireless headquarters in this
city there wore given the names OF the
arst set Of officers. r. T. Davis of
Philadelphia was listed as president
Vaughan as vice-president and treas
urer, Massie was director of the oper.
eting department, c. B. Walter as sec
Rotary. CLARK as general manager. and
Collins as technical director. Samuel
ID. Bradford, one Of the promoters Of
The Pacific company, was given az
manager Of the Pacific coast depart
ussnt.
Acknowledges the End.