New-York tribune., 1910-12-17
GET SCORE IN FRAUD RA|DS|
Federal Officials Work in Penn
sy|vania and New Jersey.
ARREST 7 IN PHILADELPHIA
Shoe Stores and Land Schemes,
Correspondence School and In
struments to Find Wealth.

Philadelphia. Dec 1e-Nineteen arrests
were made to-day in towns in Pennsylvania
snd New Jersey in the governments cru
sade against --get-rich-quick'' concerns The
arrests were made by postal inspectors and
sN the defendants were arraigned before
United States Commissioners and held in
haiI for trial, or for further hearings, on
charges Of using the mails TO defraud
The arrests. IL is said. We're ordered by
.he Postmaster General. who had postal in
snectors at work on the cases for month
and a half.
Seven of the defendants were arraisned in
.philadelphia. These were four officials of
.he Chain Shoe Store Syndicate, with Of
tces in this city: two persons constituting
,he Pine Heights Company, a New Jersey
land Improvement concern, with Philadel-
mia connections, and the seventh local
nhysician. The complete list of defendants
with the results of their hearings follows:
Chain Shoe Stores Syndicate-Louis L.
Rice, president, Philadelphia; Andrew c.
Patterson. first yice-president, also presi-
dent of the Excelsior Trust Company, Phil
n5elplia; Edgar Polling. second vioe-presi:
yice-president, Philadelphia. Each was held
IN s.eeo for further hearing.
Pine Heights Company-Robert G. Nc
Morris, Philadelphia. Harry f. Stanton,
81 s5o bail each for trial
Dr. ]. B. Hornstein, Philadelphia, held In
Charles B. Mckee. Huntingdon, Penn.
held in 81. 600 for further hearing.
] S Lepsch. Ridgway, Penn, held il
s. 800 for further hearing
John A Weitzal, Lancaster, Penn, held
J." si5raTn G. Stauffer and Oscar A. Stauffer.
Palmyra, Penn, held in $500 each for
William s Lean. Lebanon, Penn, held in
$50 for court
Ira c. Webster, Newark y. J, held in
g. 900 for further Tearing.
Oscar GuStaVSon. Jersey city n j., held
in Sg1 for further hearing
: Joseph Silverman. Pittsburg, held in
so for court
Bingham officers of the Correspondence In
stitute of America at Scranton Penn, held
IN 81 0So each for further hearing (ThlS or
ganizatjon has no connection with the IN
ternational Correspondence Schools
The government alleges that the Chain
shoe Stores Syndicate sold stock through
fraudulent representations According to
Postal Inspector Cortelyou the syndicate
was capitaiized at s2,0oa0ea. It had widely
advertised that il was establishing retail
stores il large cities, that ii was purchasing
shoe factories at bargain prices and that
L. by eliminating nliddleTnen.
The Pine Heights Company advertised
end used the mails in connection with the
giving away and selling Of lots in Southern
New Jersey which the government alleges
ere practically worthless.
Dr. Hornstein, the Philadelphia physician,
Is accused Of sending through the mails
circulars advertising a remedy, and is
H. his literature
Conrad. Lott and Bingham are, respec-
tipely. the president, secretary and treas
rrer and manager Of the Correspondence
Institute Of America The postal inspectors
l sllsge that this concern procured lists OF
i tish school students and wrote TO them,
stating that their names had been recon-
| nended as those Of persons with artistic
| talent On this account the institution Of
| fered So course Of art instruction under
/ rs faculty OF fine artists for SIS 50. 1t was
said there was 10 faculty of artists. but
there were sixty thousand students enrolled
Il the books OF the concern.
Mckee. who was arrested in Huntingdon.
haded as the Charles b Mckee Comniis-
son Company and the Huntingdon Fruit
snd Produce Company IT is alleged that
he bought produce OF farmers through the
| mai and failed TO make payments.
1 Lepsch is jeweller and is alleged to
/ have defrauded the Adams Express Com
fsny with z false claim for s3 etD DANA ges
his claim was on the alleged loss OF S, 600
worth Of iewelry which he said he had sent
10 Philadelphia firm for appraisal. 1t is
thsrged that Lepsc. merely sent al empty
l 1ox through the express company.
Weitzel IS accused OF procuring bronze
ind iron castings through the mail under