Daily press. [volume] (Newport News, Va.) 1896-current, 1910-11-22
SCHEMES UNEARTHeD;
MORE ARRESTS MADE
Two Additional Big New York Com.
panies Are Raided by Postoffiee De-
partment Officials Who AIlege the
Accused Sell Of Stocks and Bonds
That Are Worthless.
iBy Associated P.<ssl

NEW 1ORh, NOV. Zl.-n ralu5 SO
important that Postmaster General
Hitchcock took personal charge. his
inspectors fell on two concerns this
afternoon which they charge with
syindling the public out Of more than
$40.000000 by fraudulent use of the
mails.
Sheldon H. Burr, president of Burr
Brothers; Eugene II. Burr, secretary
and treasure of the firm. and Frank
H. TObey, were arrested in the first
raid and held in $4,000 bail each.
The government charges the firm
sold between $40.000.000 and $50,000.-
600 of mining and oil stock worth
little or nothing.
Charles L. Vaughan, a director OF
the Continental Wireless Telegraph &
Telephone Company, Inc, 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 $1,000 which has
Brought in no return to the investors
Vaughan is treasurer Of the Column
bia Finance Company which acts as
financial agent for the Continental
Wireless Telegraph & Telephone
Company and had charge of the Con-
tinentai Offices in this city.
To Press Criminal Action.
Both raids today are further evil
dence that the government. in its
warfare against ALLEGED interstate
swindlers. means business and no
longer will be content with issuing
han
the mails but will press foy convlc-
tions on criminal charges The pres
ent ,caunaign began some months
ago and has resulted in the arrest OF
Louis Celia and his associates, charg-
cd with operating string OF bucke.
shops; the officers of the United
Wireless Company. the FL Progresso
banana Company. the Unitec Ex-
change of Chicago. the Steele-Miiier
Cotton firm of Corinth. Miss. and
more than sixty other firms in all
parts of the country.
Have swindIed 500 100000.
Postmaster General Hitchcock esti-
mates that the public has been heeceo
ont of at least $100-000o0O by get
rich quick concerns in the last nve
wears. but says their cay has zone
The postofice department intends TO
keen after them every minute ana
Mr. Hitchcock said TO-DAY that other |
arrests involving corporations ina
have sought investors the length ano
bSeadth of the country are expected
shortly.
His statement follows:
THE arrests today by postoffice in
spectors of the principals in two I'M
portant companies. Burr Brothers
with Offices in the Flatiron building
and the Continental Wireless Com
many. with headquarters at Sc Pine
street. constitute two smore cases IN
the series of Investigations that the
postaI authorities have been making
in their crusade against the fraudu-
lent use of the United States mails
Seventy-eight Cases.
.Wi,h the work accomplished to-
day. IS such cases have been brought
10 a head during the year. 1t is esti-
mated thai the swindling operations
OF these rs cases have filched from
the American people. in period OF
five years. over 500 100000.
The crusade now in 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 with the
selection OF q new chief postoffice in
srector and certain changes and re-
organization was effected. instruc-
tjons we're issued TO the newly as
signed inspector m charge 20 take up
and prosecufp vigorously al pending
cases of frauds against the mails
Best Men on the Work.
Owing 10 the extent Of thee cases
and the large amount OF work invoiv-
cd IL was necessary to detail con-
siderable portion OF the force Of post
Office inspectors. The best men IN
the service were selected Tor TINS
work and were sent 10 their tasks
with the assurance that the depart
urent at Washington would back them
nm to the fullest extent. In order 70
strike At the root Of this evil The de-
partmsnt directed its agents 70 20 a.
ter the mer higher rp in there giean-
t,c schemes 20 defrsuc. and to allow
no influence Eowever powerful 70
prevtut the proper punishment OF ne
offenders. Through the assistance OF
the attorney general the fun co-ope-s.
ton Of his department was secured IN