The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-11-22
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| NEW YORK. Nov. 21-In raids so i'm
portant that Postmaster General Hitch
cock took charge in person. his fnspec-
| tors descended on two concerns this
afternoon which they charge with swim
| ding the public out OF moro than
$4,000, 600 by fraudulent use OF the mails.
Sheldon II. Burr. president: Eugene RI.
Burr. secretary and treasurer, and Frank
H. Tobey. vice president of Burr Bros.
were arrested In the first raid and held
! in. 100000 ball each The government
charges that the firm sold between $40
| 100000 and sP0.OOO.oOO OF mining and oil
stock worth little or nothing.
Charles i. Vaughan. a director of the
To,a. Toh.lnentai Wireless Telegraph and
IONA, was taken In the second raid and
held IN $4,000 bail Inspectors say his
company ha has So sold stock amounting 10 at
return to investors
Vaughan is treasurer of the Columbia
FINANCE company, which acts as fiscal
agent for the Continental Wireless TcIc-
graph and Telephone company. and had
charge of the Continental Office In this
city.
Many Arrested in Campaign.
;, Both a. raids today arc further evidence
against alleged Interstate sNindlers,
means business and no longer Will be
content with issuing fraud orders deny
Ing them the use of the malls. but vii!
press for convictions on criminal
charges
The present campaign began some
months ago and has resulted In the ar
rest OF Louis a. Celia OF ST. Louis and
his associates. charged with operating Il
string OF bpckelshops: the officers OF tho
United wireless company OF the III Pro-
Exchange of Chicago OF the Steel Miller
Cotton firm OF Corinth. Mass, and OF
more than sixty other firms In all parts
OF the country.
Postmaster General Hitchcock esti-
mates that the p,rDlic has been 1eeccd-
out OF at least 100000, 600 10y gct-rich-
quick concerns in the last five years. but
he says their hcydny has gone. Mr..
Hitchcock said that other arrests in
VolvinG corporations that have Sought in
vcstors throughout the country, are eX-
peCted shortly.
Companies Get Millions.
"'rhc arrest today by postofilce inspec-
tors OF the principals in two IMPORTANT
companies, Burr Bros, with offices In
the Flatlron building. and the Continent
al Wireless compony: with headquarters
General Hitchcock. constitute two more
cases in the series OF Investigations that
the postal authorities have been making
in their crusade against the fraudulent
use oil the malls
with the work accomplished today.
seventy eight cases have been brought to
d ISiu WltillH IL year. II Is cStlnateu
that the swinding operations of these
seventy eight cases have hlched from the
American people In period OF i've years
over one hundred million dollars
Get Men Higher Up.
'0Thc department directed its agents TO
go after the men higher up in these gi-
santic schemes to defraud, and TO allow
no influence. however powerful To pre-
Won't the proper punishment of tho Of
Tenders.
"As the work OF investigation proceed
cd, 1t became apparent the fraudulent
use OF the mails far more extensive
than had been realized. A vast System
ot fraud, as far-rcachinG in its ramiicu-
tions as the postal service Itself, had
ccen developed by INSCRIPTIONS men,
Who. through the grossest forms of mis-
were stealing from tho
1copIe millions Of dollars annually.
''Thcsc fraudulent operations have not
,Tly SwrJled thousands of innocent In
'cstorS. hut have created lack OF conf
icncc III legitimate business enterprises.
Formerly II WAS the practice to issue
fraud order against the guilty con-
cru. This method proved inefficient for
WAS a simple matter for its operators
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