Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-11-22
Postmaster General Hitch
cock Takes Charge
of Cases.
MANY ARRESTS DUE
Declared That American Pub
lie Has Been Defrauded
Out of $1OO,OOo,0oO.

New York, Nov. 22.-Postmaster Cen
eral Hitchcock, speaking Of the crusade
against get-rich-quick concerns, says
he is determined to send to prison this
class of promoters, who, he says, have
sold 100000 in worthless securi-
ties in the last five years. He declares
the government will drive from the
country every wildcat scheme. Many
arrests are expected throughout the
country today or within the next few
days.
Have Not Secured Bail.
Shelton c. Burr, president; Frank
H. Tobey, vice president, and Eugene
H. Burr. secretary-treasurer of Burr
Bros, arrested yesterday, have not yet
secured bail. 1t is said members of
the Burr company cleared over $751;
100000 in stock operations.
Catch ChIcaEOan.
Kalamazoo, Mich, Nov. 22.-Charles
II. Tobey of Chicago, who, II is charg-
ed, is implicated with Burr Brothers
of New York, in the alleged fraudu-
lent use of the mails, was arrested
today near Bloomingdale by Deputy
United States Marshal O'Donnell. He
will be taken to Grand Rapids for ar
raignment.
Takes Personal Charge.
New York, Nov. 22.-Postmaster Gen
eral Hitchcock took personal charge of
raids on two concerns charged with
using the mails to defraud the public
out Of s4O,OOO.00O by selling stock on
the promise of enormous dividends
The Offices rRided were those OF Burr
Brothers, incorporated, and the Con
tinental Wireless e. Telephone com
pany, an Arizona corporation.
In the first raid Sheldon n. Burr.
president of Burr Brothers: Eugene
II. Burr, secretary and treasurer of the
firm, and Frank H. Tobey. its vice
president, were arrested and held I'm
$2O,O bail each. The government
charges that the firm sold between
$40. 100000 and S5O,OOO.OOO of mining
and oil stock worth little or nothing
Second Raid Yields One.
Charles L. Vaughan, a director Of the
Continental concern, 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 $1,000
coo which has brought in no return TO
the investors. Vaughan is treasurer OF
the Columbia Finance company. which
acts as fiscal agent for the Continen-
tai Wireless Telegraph & Telephone
company, and had charge Of the Con
tinental Offices in this city.
Public $1OO.OOO.OOO Loser.
Postmaster General Hitchcock esti-
mates the public has been fieeced out
of at least 500, 100000 by get-rich-
quick concerns in the last five years
by the cases which have been brought
to a head by the department during
the year. but he says their hey-day has
gone. other arrests, involving cor
porations that have sought investors
the length and breadth of the country,
he said. are expected shortly. His
statement I'm part follows:
THE crusade now I'm progress is the
result of a carefully laid plan of some
months ago, the first step in which
was a thorough reorganization OF the
inspection service. In order to strike
at the root of this evil. the department
its agents TO go after the men
higher up in these gigantic schemes
to defraud.
Vast System Exists.
"As the investigation proceeded II
became apparent that a vast system of
fraud as far-reaching in its ramifca-
tions as the postal service itself had
h..
who were stealing from the people mil.
lions of dollars annually. These fraud.
ulent corporations have not only
swindled thousands of innocent inves-
tors. but have created a lack of conf
dence in Legitimate business enter
prises. It is therefore as important to
the business community TO have these
frauds stopped as il is to the people
whose losses are directly traceable to
them