Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-12-17
Four Officials of Syndicate Are Takeu
Into Custody.
PINE HEIGHTS COMPANY ALSO
New Jersey Land Improvement Com
pany Among the Number.
HELD IN THOUSAND DOLLAR BAIL
Officers Of New JerseS Land Company
waive iIcnrinR aud Are Held in
Five Hundred DuIIHrs' HAIL
for Trial.

PHILADELPHIA. Dec. l6-Niuetern a.
rests were made today hy posta inspectors
in Pennsylvania and New Jersey in tho
governments crusade against persons ac-
cused OF using the mails to defraud.
The defendants were given hearings hc-
fore United states commissioners and held
in bail for trial or for further hearings
Seven OF the defendants We're given hear
ings In Philadelphia. These include off
cials OF the Chain Shoe stores syndicate,
with stores here. Two constitute the Pine
Heights company, New Jersey land Inn
provement concern with Philadelphia con-
nectons and the seventh is local ply
s.clan. The complete list with the results
of their hearings is:
Chain shoe stores syndicate LOUIS l..
Rice. president Phlladelph a; Andrew c.
Patterson, first vice president OF the syn
dicate, also president OF the Excelsior
Trust company OF Philadelphia; Edgar
Pohng second vice president and treas
urer: George II Brooks, third vice presi-
dent, Philadelphia.
Bach was held in $1,000 bail for a fur
ther hearing
The Pine Heights company Robert O.
McMorris, Philadelphia, and Harry r.
Stanton, Ocean City, N j. waved hear
ing and were held in $500 bal each for
trial.
Other individuals arrested were:
individuals Arrested.
DR. ]. r. Hornstein $500 Philadelphia
Charles b. Mckee, Huntington, Pa, NOoO
for further hearing; j. S. Lepsch, Itldg-
way, Pa, $500, for further hearing; John
A. weitzal, Lancaster, Pal $1,000, fer
trial; Abram Stauffer and Oscar A.
Stauffer Palmyra, Pa, $500 each, for
court William 8. Lean, Lebanon, Pa.
$500, for court; Abram s. Stauffer Pal
myra, Pa 4,5OO, for court; Ira c. Webster,
Newark, N. j., $1,000 for further hearings
Oscar Gustavson, Jersey city, n j. $500
for further hearing S. Joseph slverman,
Pittsburg Pa. $500, for court; Lewis
Conrad Conrad, Lotz and william Bing-
ham, officers of the Correspondence 1nsti-
tute Of America OF Ccranton. 81, 900 each. for
further hearing This organization has no
connection with the international Corre-
spondence schools.
The government alleges that the Chain
Shoe stores syndicate sold stock through
fraudulent representations.
Dr. Hornsten, the Philadelphia physi-
clan, is accused of sending through the
mails circulars advertising a remedy and is
charged with making fraudulent statements
in his literature.
Conrad, Lott and Bingham are, respec-
lively, the president, secretary and treas
urer and manager of the Correspondence
Institute OF America.
Charge Fraudulent Letters.
The postal inspectors allege that this
concern procured lists OF high school stu
dents and wrote to them saying their
names had been recommended as those OF
persons with artistic talent. on this ac-
count the institute offered $42 course OF
art instruction under its faculty of fino
artists for $3.50 It was said there was
faculty of artists, but there were 6O,0OO
students enrolled in the books OF the con-
Germ.
Mckee, who was arrested In Huntington,
traded as the Charles b. Mckee Commits
sion company and the Hunting Fruit and
Produce company II Is alleged that he
bought produce OF farmers through the
mails and failed TO make payments.
Lepsch is "a jeweler and is alleged TO
have defrauded the Adams Express com
pany with a false claim for 1900 damages.
His claim was an alleged loss of 5000
worth OF jewelry, which he said he had
sent to a Philadelphia jewelry firm for
appraisal. It is charged that Lepsch merely
sent an empty box by express.
Weitzel is accused OF buying bronze and
iron castings through the mail and neglect
ing payment. GustAvson is said to have
sent improper literature through the malls.
Snverman is alleged TO have collected
money for a supposed charity. using the
names OF Pittsburg people without their
consent,
The arrests, 1t is said. were ordered by
the postmaster general who had postal
inspectors at work on the cases for
month and half.