New-York tribune., 1910-08-14
MILLIONS SUNK IN FRAUDS
Head of PoStoffiCe Inspectors
Places 1t at S5O,000,000.
THAT SUM IN TEN YEARS
Says 20-Cent Shares Spell
Fake e"-Investors Lose
S5,OOO,000 a Year.

In the last ten years the American
people have invested $4,000, 600 in fake
mining schemes Warren Dickson, the
new head OF the postoffice inspectors in
this city. said yesterday. He was talk
ing about the investigation being made
of the affairs of William T Wintemute.
who is in the Tombs awaiting tomorrow.
When his counsel will endeayor to have
the bail, fixed at $1,000 by United States
Commissioner Shields, reduced to some
where within reach of Mr.. Wintemute's
pocket
Wintemute, through his counsel and
otherwise, denies his Culpability. The
postoffice authorities declare that the
circulars and other documents used by
him and his agents to induce persons to
invest in the stock of the Gold Run
Mining and Milling Company were eX-
aggerations, coming within the mean
ing of the Revised Statutes of the United
States against misuse of the mails;
ana the postoffice inspectors say that
100000 was taken in from the sale OF
Gold Run stock
1t was the result OF Investigations of
so-called fake mining enterprises that
showed S50,000000 had been lost by
investors i'll the last ten years. Mr..
Dickson believed that that sum was
very conservative estimate. The gov
ernment has gone after persons VINO
have used the mails for mining and other
business promotion before this, but
never so determinedly as at present, for
il is bound tC wipe out all manner OF
misuse of the mails, no matter what the
articles the dealers in inflated or false
ventures may seek to sell.
Wintemute's history has been tabu-
lated and checked up. And his is not the
only record that will be used in the
present crusade. The action against the
United Wireless Telegraph Company
was really only q part Of the govern
ments plan to protect the people ds far
as possible against misrepresentation III
commercial enterprises, said Mr.. DICK
son, though he stated that he did not in
clude the United Wireless in his csti-
mate of losses suffered by the people in
the last ten years. ..
mo person who has real gold mine,
or mine of any kind with actual produc-
uI1ty III SlSnl, Dett pSduiS SUN a. -'
cents a share, or less, or more" Mr.
Dickson said. whenever that is being
done it is time to ask for an accounting
and an authenticated report from an un-
doubtedly efficient and honest mining
engineer There is plenty of capital
ready for the development of any pro-
ductiye mine"
There will be renewed activity in the
Federal Building tomorrow. whether
Ny Wintemute has his bail reduced and
gets a bond or not. There may be other
arrests before the week has passed The
postofTice inspectors are receiving nu-
merous complaints, now that the action
in the wintemute case has received pub
licity. 1t would take the division III this
city several months TO investigate the
,eW complaints that have been received
regarding other mining ventures.
Herman WARSAW WAX, who was said to
have sold Gold Run stock in Europe, has
not communicated with Mr Wintemu.e.
so far the postoffice inspectors ar"
aware Warszawiak would be a ma
teraI witness regarding the transactions
abroad and the inception Of the enter
prise in this country. Persons ac-
o1ainted with the converted Jew said
Yesterday that they had believed lie was
engaged in some kind of missionary
work in London.
''If it was WarszaWiak who sold the
stock 10 the Dowager Lady Tanker
field" an acquaintance said last even
ing, he must have interest I'd her in his
former work among his race. Her
daughter-in-law and her son We're ar
dently interested in mission enterprises,
and she was said To have as much zeal