New-York tribune., 1910-11-22
RAIDS MADE ON
BIG FRAUD CHARGE
PostoffiCe PounCes on Burr
Brothers and Continental
Wireless Concerns.
FOUR PROMOTERS ARRESTED
Reviewing Crusade, Government
Says S1OO,O0O,0O0 Have
Been Filched from People
II Five Years.

IN pursuance OF IIe government > CFN-
sade TO rout stock jobbers VINO are VIC
tinizing investors all over the country.
pcstoffice inspectors. backed BY dstsc-
tives from Headquarters. swOOped down
yesterday on Burr Brothers. Incorpo-
rated. a stock selling concern in ths
FIatiron Building and the offices Of this
Continental Wireless Telephone and Tet-
egraph Company and other concerns. az
No. 56 Pine street Four arrests were
made in this city and it IS expected that
other arrests were male in other parts
of the country or Will be made to-day.
Frank H Hitchcock, Postmaster Cen
eral. and Robert :. Sharpe, chief post
Office inspector. have both been in New
York since last Thursday. though thsir
presence was not made known except 20
the officers intrusted with the execution
/ Of the warrants Both were at the Of
/ flee Of Warren " Dickson. postcfice in
srectOr in charge of this district, when
the arrests We're made. and they are
still here to-day It is expected thar
other arrests viii follow. both in thess
cases and in those Of other companies
that have been under investiga ton.
Tobey. president and Eugene H
/ Burr, secretary and treasurer of Burr
Brothers. were first brought in. ani
when they could not supply $4,000 bail
they were taken 10 the Tombs by Mar
shaI HenkeI 4 little later. when the
offices OF the Continental Wireless COM
pany were raided. Charles L Vaughan.
! former treasurer Of that organization
now treasurer OF the Columbia Financs
( Company and assistant treasurer Of the
/ Collins Wireless Telephone Company, Of
! Newark \ J. was the only one found
! in charge. He too. went TO the Tonos
in default of $1,000 bail
F. W Preston. a director Of Burr
/ Brothers was arrested last night in
/ Portland. Ore. OF a warrant charging
/ to defraud- He was about 70 start for
/ san Francisco. His bail vas f1ed at
! $4,000
Reids Please Hitchcock.
Postmaster General Hitchcock was
we'll pleased with the way the raids were
conducted With the full approval and
Endorsement of President Taft. he said
he has determined 10 drive OUT Of bust
/ ness so far as the Postof7ce Depart
meRt can DO il, those who prey on the
! ignorant and the uuwary By sending
/ highly coIored literature setting forth
the alleged merits of fake concerns For
| this purpose. he declared. he has to 4
| certain extent disorganized the Post
| office Inspectors Department by taking
( the best men in each district and calling
them together TO work for one common
object
! The shake-up OF the postof1ce inspec-
! tors in charge was another move. hs
added. 10 the same end Warren W
/ Dickson. now in charge in New York.
met the approval Of his chief in
marked manner.
/ II knew Mr. Dickson was a man oc
nerve and courage. who could not ne
scared by the biggest concerns any more
! than by the small ones" said Mr. Hitch
| cock, and that is why I sent him here
/ For the same reason I appointed Mr.
Sharpe as chief inspector and an we'll
satisfied with the results"
| After the arraignment Of the four
/ prisoners yesterday the Postmaster
/ General issued the following statement:
spectors Of the principals in two i'm
rortant companies-Burr Brothers. with
offices in the FIatiron Building and the
Continental Wireless Company with
headquarters at Nc SIS Pine street-con-
stitUte two more cases in the series II
Investigations that the postal authorities
have been making in their crusade
against the fraudulent use OF The United
States mails With the work accom-
plished to-day, seventy eight such CASES
have been brought TO a head during the
year. It is estimated that the swindlinx
operations of these seventy eight cases
have nIched from the American peopis
in a period of five years over 500 600. 900.
Plans Laid Months Ago.
The crusade now in progress IS ths
result of carefully laid plan OF some
months ago. the first step in which was
a thorough reorganization OF the inspec-
ton service. with the selection OF a new
Chief Postoff7ce Inspector and certain
changes and reassignments in the force
OF inspectors in charge of the fifteen in
spectiou divisions.
.As soon as the reorganization was
effected, instructions were issued TO the
newly assigned inspectors in charge -
take up and prosecute vigorously all
reuding cases Of frauds against the
mails. Owing to the extent OF these
cases and the large amount OF work in
volved. II was necessary 10 detail for the
purpose OF investigation a considerable
norton OF the force OF pOstOftice inspec-
tors The best men in the service were
selected for this work. and were sent
m their tasks with the assurance that
the department at Washington would
hack them up 20 the fullent extent in
their work of prosecution.
I'm order To strike at the root of this
evil the department directed its agents
10 go after the men higher up in these
gigantic schemes TO defraud and 10 allow
no influence. however powerful. 10 pre-
vent the proper punishment of the Of
tenders Through the assistance of the
Attorney General. the full cooperation
OF his department was secured in the
successful carrying out of this crusade.
~As the work OF investigation pro-
ceeded, IL became apparent that the
fraudulent use of the mails was far
more farreaching than had been rea lied
BY the department A vast system OF