Albuquerque morning journal., 1910-11-22
Hitchcock Personally Leads His
Inspectors to Offices of Burr
Brothers and Continental
Wireless Co, at New YORK,
POSTMASTER GENERAL
CHARGES GIGANTIC FRAUDS
American People Cheated Out
of One Hundred Millions in
Five Years, He Says Cam
paign Against SWindIers.

IBy Morning journal sDeeiai LsaKsd Wirel
New York, Nov. 21,-In raids so inn
portant that Postmaster General
Hitchcock took charge in person, his
inspectors raided two concerns this
afternoon which they charge with
swindlns the public ont Of more
than $4,000. 900 BY fraudulent use Of
the mails.
sheldon It. Burr, president, Eugene
H. Burr secretary and treasurer and
Frank II. pobeX, vice president Of
Burr Brothers we're arrested In the
first raid and held in Se0,000 bail
each
The government charges that the
firm sold between St0.o00.uo and
$4,000, 900 of mining ana oil stock
worth little or nothing.
Charles H. Vaughan, "a director OF
the Continental Wireless Telegraph
and Telephone company, incorporated
80 Arizona WAS '9tkei 6J tge second
raid and held Ia $4,000 bail. In
spectors say his company has sold
stock amounting 10 at ienst Sl0oO,-
600 which has brought in no return
to the investors
Vaughan is treasurer of the Colum-
bia Finance company, which acts as
fiscal agent for Tho Continental Wire
less Telegraph and Telephone COM
pany and had charge oi the Cont
mental office in this city.
Both raids today are further evi-
dence that the government in its war
fare against alleged interstate swim
dlers means business. and no longer
viii be content with Issuing fraud
orders denying them the use Of the
mails. but viii press Tor CONVICTIONS
on criminal charges,
The present campaign began some
months ago, ana has resulted in the
arrest of Louis \. Celia of st Louis
and his associates, charged with oper-
ating d string of bucket shops, the Of
rcers of the United Wireless com
panV; OF the El Progresso Banana
company; Of the United Exchange OF
Chicago; OF the Steel-Miller Cotton
firm of Corinth, Miss, and of more
than sixty other firms in all parts OF
the country.
Postmaster General Hitchcock esti-
mated that the public has been
floeced out OF at least 500, GOO, 600 by
get-rich-quick concerns in the last
five years, but. he says, their hey-day
has gone Postmaster General Hitch
cock said today that other arrests, IN
volving corporations that have
sought investors thrOup hout the coun-
try are expected shortly
'"rhe arrest today by postoffice IN
spcctOrs OF the principals in two inn
portant companies, Burr Brothers
with offices In the Fiat Iron building.
and the Continental Wireless COM
pany. with headquarters AZ 56 Pine
street" said Postmaster General
Hitchcock, constitute two more cases
in the series of Investigations that
the postal authorities have been max
ing i'm their crusade against the fraud
ulent use of the mails.
with the work accom- plished to-
day, seVenty-eight cases have been
brought to head within year. II
Is estimated that the swindling oper-
ations OF these seventy-eight cases
have filched from the American peo-
pie in a period Of five years over one
hundred million dollars.
THE crusade now i'm progress Us the
result of a carefully laid plan Of some
months ago, the first step IN which
was a thorough reorga nization of the
inspection service with the selection
OF q new chief nostoffice inspector
when certain changes and reor-
ganization were effected, instructions
were issued TO the newly assigned IN
spcctor in charge to take up ana
prosecute vigorously all pending cases
of fraud against the mails.
owing 10 the extent Of these cases
and the large amount Of work in
VOWED. 1t was necessary TO detail a
considerable portion of the force of
INSPECTORS.
In order 10 strike at the root Of
this otil the department directed its
agents TO GO after tho men high un
in these gigantic schemes 20 defraud.
aud allow no influence however now
crful To- prevent the proper punish
ment OF the offenders Through the
assistance of the attorney general the
FUN co-operatidn of this department
was secured I'm the successful carry
inc out Of this crusade.
-'Ns the work 81 investisation pro-
ceeded. a. became apparent tho fraud
uIent use OF tho mails Was FAR more
extensive than had been realized. a
vast system of fraud as FAR reaching
in its ramificaiions as the postal ser
vice itself had been developcd by nm
serupulous men. who. through the
arossczt forms of Misrepresentation
were stealing from the people mill
lions OF dollars annually.
.Those fraudulent operations have
not only swindled thousands Of inno-
! cent investors but have created a