Arizona republican., 1910-11-22

New York, Nov. 21-In raids so
important that Postmaster General
Hitchcock took charge in person, in
spectors took action today against
two concerns which they charge with
swindling the public of 100000 900
by the fraudulent use of the mails.
Sheldon II. Burr. president; Eu-
gene II. Burr. secretary treasurer.
and Frank II. Tobey. vice president
of Burr Bros, were arrested in the
first raid and We're held in $4,000
bail each The government charges
that the firm sold between $4O.OOO,OOO
and $5O,OOO.OOO of mining and oil
stock worth little or nothing
Charles L. Vaughan. director of
the Continental Wireless Telegraphy
and Telephone company. incorporated
in Arizona was in the second raid
and was held in $4,000 bail. The in
spectors say his company has sold
stock amounting to at least $1,000, ,OO0.
which has brought no return to in
vestors. Vaughan is treasurer of the
Columbia Finance company which
acts as fiscal agent of the Cont
mental company and had charge of
the Continental offices in this city
Both raids today are further evil
dence that the government in its
warfare against alleged interstate
swindlers means business and will no
longer be content in issuing fraud
orders denying them the use of the
mails but will press for convictions
on criminal charges.
The present campaign began some
months ago and resulted in the ar
rest of Louis \. Celia of st. Louis
and his associates. charged with Op-
Grating a string of bucketshops; the
officers of the United Wireless COM
pany. the FL Progreso Banana COM
pany. the United Exchange of Chi
cago. the Steel Miller cotton firm of
Corinth. Miss, and more than sixty
other firms in all parts of the cOun-
try.
Postmaster General Hitchcock es-
Inmates that the public has been
fleeced out of at least 100000. 600
by get-rich- quick concerns in the last
five years. but he says their heyday
has gone He said today that other
arrests involving corporations that
country were expected shortly.
THE arrest today by pOstoffice in
spectors of the principals in two i'm
portant companies. Burr Bros, with
offices in the F'Iatiron building. and
the Continental Wireless company.
with headquarters at 56 Pine street"
said the postmaster general. con
stitute two more cases in the series
of Investigations which the postal Of
ficiaIs have been making in their
crusade against the fraudulent use of
the mails. With the work accom-
plished today. seventy eight cases
have been brought to a head within
year.
The crusade now in progress is
the result of a carefully laid plan
some months ago, the first step of
which was a thorough reorganization
of the inspection service with the Sc
lection of a new postOffice inspector.
When certain changes and re-organ-
izations were effected Instructions
were issued to the newly assigned
inspector in charge to take up and
prosecute vigorously all pending
cases of fraud"
"AS the work of investigation pro-
ceeded it became apparent that the
fraudulent use of the mail was far
more extensive than was realized. A
vast system of fraud. as far-reaching
in it's ramificatiOns as the postal SER
vice itself, had been developed by un-
scrupulous men who through the
grossest forms of Misrepresentation
were stealing from the people mill
lions of dollars annually.
"These fraudulent operations have
not only swindled thousands of innO-
cent investors, but have created a
lack of confidence in legitimate bust
ness enterprises. 1t is therefore as i'm
portant to the business community to
have these frauds stopped as it is to
the people whose losses are directly
traceable to them.
The specific charge against Vaughn
is set forth i'm the complaint of Will
lam b. Robinson, postal inspector. that
on June 4, 1910, he devised a scheme