The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-11-22

have rlch-d from the American people
In a period OF Ave wears over 500 100 0oo.
The crusade now IN progress Is the
result OF carefully laid plan Of some
months ago. the first step in which was
thorough reorganization Of the inspection
service. with the selection Of new chief
post o'fics Inspector and certain changes
and reassignment- in the fore. OF inspectors
ia charge OF the fifteen inspection divisions.
As soon a. the reorganization Wa effected
instructions we're issued t. the newly as
signed Inspector In charg. to take M ana
prosecute vigorously all pending casas
Of frauds against the mails OWING To 'he
extent OF these cases and the lars" amount
OF work involved II ws~ necessary To L"'ali
for tn. purpose Of inv tiga'ion a con-
siderable portion of the force OF poet office
inspectors The best men in the service
w.r" -l-l-ct-d for this work and were sent
10 their tasks with the assurance that I'll"
department NJ Washington would back
them up - the FULLEST extent in the work OF
prosecution IN order to strike Al IN. root
al tnlS evil the Department directed it, 1
agents TO go after the men higher up III
these gigantic schemes to deiramd and TO
allow nn influence. however powerful. '"
prevent the proper punishment Of ia.
offenders Through tn. assistance OF IN.
Attorney General the full cooperation %
h,- department wa~ secured in the success
ful carving out Of this crusade"
A. the work OF investigation proceeded /
1t became apparent that III" fraudulent
Use Of the mails was far more extensive J
than had been realized by the Department
\ vast system Of fraud n far reaching
in ~ ramificatiOns aa the postal service
it~.it had been developed bs interruptions
men Who through the grOs-"st forms OF
representation were stealing from III"
people millions OF dollars annually These |
fraudu"n' operations have not only swim
died thousands OF innocent investors
but have created IL lack OF conhdenc" IN
legitimate business enterprises. tis there !
fore a. important To the business com /
munttN fo hav. these frauds stopped A. II I
- Ia 'h- people whose LOSSES are directly .
trac-abl" To them Formerly the pro
crduT- IN such fraud cases was entirely /
different ~ Was the practice 70 issu. IA
fraud order against the guilty concern /
This method proved Ia be Ineffective
Will. ~ deprived the offending concern
of ih. Use OF the mails IL was a simple |
matter for lis promoters TO reorgani,e !
under a new name and thus eyade the law.
la the Departments present crusade the /,
practice has been TO proceed immediately |
TO lh. arrest of the principals In the fraud |
ulent enterprises the obi Ct being Ia secure !
the prompt conviction and imprisonment
Of the men who organize and promote /
the,. schemes To d.fraud The results
already accomplished by the Department
represent only the beginning Tn. work /
of investigation aud prosecution will pro /
coed with all possible viRor until the swim |
ding Of the peopl. through the use Of the
mails IL brought to AN end
In further explanation OF the work I
underway the Department issued the
following statement.
Among n. seventy eight cases IN which
arrests have been made during the year /
may h- mentioned III. following
The Steele Mill-r 'a-s at Corinth. Mis- /
Ia this ca--. 8, $40 UU vas obtained by I
fraudulent practices ia III. WAY of forged
bIll- of iadiug Tor TIA" sal" Of cotton Th-S. /
bills ~ lading were negotiated and the 4
money received. bu' usually no cotton !
Wa shipped Dur entire export cotton !
trad" ~a- Upset hy the action Of This com I
pauy and another one now under invest ,
CATION
The United ty'hang" az chicago. ~ !
incorporated with "A capital 81 $50 O,.O Oss |
IhI- concern Na- engaged ia making ais. |
guarantees aud selling -to,k- and boId- !
IN notiiiuu- institutions
I'M. ntt-d Wireless Telegraph COMPANY /
~ New N"rk This COMPANY sold ne r-ona /
~ we'll a. treasury stock ia the company |
purportIng that IL was all treasury -tOCa |
tn. stock sold was made non transferable /
for 'h- general public for two wears for the /
pirpr-- OF k--p,nR ~. stock or IN. market |
n j. estimated that som. $50 GEO OOS was !
obtained FROM the public through mt. |
-'heTn"
" Wint-muf- New York This pro
mo'~r nost-d many fraudulent INNING aud |
oil schemes and during his activity lee sold |
stock estimated ~ about 81 .5o0.gD Many |
Of hi- victims ara In England
John Mabry and others Of Council .
Bluffs Iowa These swindlers received /!
an excess OF s5Oosp Eiyhsy-fIye |
memb-rs OF This gang vera indicted AT
touncil Bluffs and ninety were indicted
a, Omaha Many OF them have been tried !
and already convicted
National Assurance Co Wilmington ,
Del This company offered employ
on condition OF purchase OF stock in the
company After securing a purchaser
continued MEASUREMENTS were made 10 .
induce subscribers TO continue payments
Several hundred thousand dollars we're
obi aimed from tho public by this concern