Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-11-22
FAKE PROMOTERS
TOBE W|PED0UT
Postmaster General Moving in
General Crusade-JaiI "Get-
Rich-Quick" Frauds.
TWO BIG CONCERNS
RAIDED IN NEW YORK
Millions Cleared in Crooked Stock
Operations, Says Hitchcock.
MORE ARRESTS TODAY, MAYBE
Washington People Investors in Con-
tinental Wireless Company.
Many Projects Of
Burr Bros.
Millions Cleared in Crooked Stock
Operations, Says Hitchcock.
MORE ARRESTS TODAY, MAYBE

sade Of Postmaster General Hitchcock
against "get-rich-quick'' concerns Is ex-
pected today to cause a general exodus of
fake promoters from the city.
The Postmaster General is determined
to send to prison this class of promoters
which. he says, has sold to an unsuspect-
ing public about 500, 100000 of worthless
securities in the last five years.
Postmaster General Hitchcock today ex-
pressed great satisfaction at the start
that has been made, and declared that
the government will drive from the coun-
try every wildcat scheme to separate
gullible investors from their money.
Many arrests are expected throughout
the country today or within the next few
days.
Unable to Find Bail.
Officials of the Burr Brothers Company
Sheltin d. Burr, president; Frank H.
Tobey, vice president and Eugene H.
Burr. OBSERVATION-DISCLOSURES - arrested yes
terday, spent the night in the Tombs in
default Of $4,000 bail each They will be
examined Monday.
The members of the Burr company are
said te have cleared over $4,000, 900 in
their stock operations
Charles L. Vaughn, a director of the
Continental Wireless Telegraph and
Telephone Company, Incorporated in
Arizona, was taken in second raid
and held in $4,000 bail. Inspectors say
his company has sold stock to the
amount of at least $1,O0O,O0o, which has
brought no return to the investors
Vaughn is treasurer of the Columbia
Finance Company, which acts as fiscal
xl&4
graph and Telephone Company, and had
charge of the Continental offices in this
city.
President Burr Of Burr Bros was not
i'm his office when the raid was made;
The inspectors found him later. and
when taken into custody he remarked
quietly:
IT'S all ended"
After the raid Inspector Reddy was
sitting in Burr Bros. Offices when the
telephone bell rang, and David Buick
called up from Flint, Mich, he said, to
ask for particulars about the raid and
what the effect was likely to be.
When Reddy declined to give any in.
that he was coming on to New York
Immediately.
Branch Offices of Burr Bros. at Bak.
ersfield, Cal; Los Angeles and Seattle
Wash, were closed by the postal au
thOrities several months ago.
operations OF BUTT oTOS.
After the raid Postmaster Genera
Hitchcock gave out an official memor
andum concerning the Burr Bros.
which was organized several years agt
and in 1907 was incorporated with ;
apital of 100000, and later increased
to 100000.
The memorandum states that among
"a
selling the stock of the Buick Oil Com
pany, a concern with 100000 capital
The memorandum further states as FOL
lows: -,
"They have also organized the Ioi
lowing oil companies: Caroline Censor
idated. capitalized at $l,0O0,OU0 Coallnt
Aladdin. capital Zed at Sl,OOO.O0O; herh
Western. capitalized at $I50,OoV: Nes
York -Coalinga, capitalized at $50O,o0o
Coalinga Crude Oh. capltal.Zea al sfoV
900; Peoples Associated on company
capitaliZed at S1,OOO,0UV
"AU the stock in these companies ha
been sold except portion or the WV
first named, and the greater portioi
of the money has evidently gone int
the hands of Burr Bros. incorporated
While all the companies are still IN ex
stence none save the first four named
is doing any work at the present time
OF three mining companies orRahiHe'
by the Burrs, Mr.. Hitchcock says:
Practically the entire stock In thes'
comnanies has been sold To the pubic
and at the present time all these com
panies have gone out Of existence.
Many projects now OUT 1i ;eAi .nat ),
several that still survive and one that I
| i'm the hands of IA receiver are enumerated
| "Jn every instance they have PROMISE
large dividends on the stock sold," say
Mr.. Hitchcock, lin addition 10 an IN
crease i'm the value of the STOCK: o", no
/ i'm n single case have any or me com