The Washington herald., 1910-12-17
GET-RICH-QUICK
CONCERN RAIDED
Twenty-Five Arrests Made in
Philadelphia Crusade
STOCK AND LAND SWINDLERS
POst-Office Inspectors Get Big Haul
on Various Grounds-SOme of the
Cases Are Unique-Chain Shoe store
Syndicate Under Fire because of
Misdeeds Under Old Regime.

Philadelphia. Dec. ls.-In sweeping
crusade against alleged get-rich-quicl<
concerns which use the mails 10 further
their schemes, post-offiee inspectors,
working under the direction OF Chief In
spector J. S Cortelyou, made twenty-five
arrests in this city. other sections of this
State, and New Jersey to-day The up
State arrests were made quietly The
smaller cases were not made public un-
I'll the larger raids were completed. The
prisoners are all accused of using the
mails TO defraud. some being said TO
have conducted stock and land swindles.
while others are accused OF selling goods
for which they never paid OF securing
money for articles never sent 10 the
WOuld-be purchasers.
The most important arrests were made
in Philadelphia, when four former Off
cials of the Chain Shoe store Syndicate,
a concern which the postal inspectors
describe as a rival of the National Pub
lie Utilities Company, were taken into
custody and later held in $1,000 bail for
a further hearing on January s.
Known in Financial Circles.
The men arrested are: Louis l. Rude,
president: S Edwards Pohlig. second
vice president, and George S. Brooks,
third vice president. All OF the men are
of more or less prominence in local finan-
cial circles. The postal officers say that
former officials of the Chain Shoe Stores
Company had as assets a handsomely
furnished Office in the Franklin National
Bank, and a cobbler shop, described in
literature Of the company as a factory
able to run out 500 pairs of shoes day
The company said its scheme was to
own and control shoe stores and fac
tories in various parts OF the country
The company was formed in 1909, with a
capitalization of 100000 authorized, is
sued in shares of par value Of 81
At the start the price per share was 20
cents. This, the postal officials say, was
subsequently increased 81 to mised un-
wary investors. About $13 900 in stock
was sold. it is said. Last October a re-
organization OF the company vas de-
manded by some of the stockholders who
had become suspicious and old officials
were forced to resign and three new ones
elected.
The prosecution is based on the con-
duct of affairs by the old officials.
Land Company Under Fire.
Another company whose officials were
arrested to-day was the Pine Heights
Land Company, with Offices in this city.
The officials arrested are Harry F. Stan
ton, builder and real estate man;
brmer councilman of Ocean City, N. j.,
and Robert G. McMorris, of this city.
The scheme which the government says
was worked was similar to that of the
companies which were raided some time
ago. The company had a tract of land
near Tuckahoe, n. j. The postal Off
cials say it was represented 10 be i'm
proved, but in reality covered with scrub
oak
The company is said to have given
away between 400 and 500 lots, charging
81 for the deed to each lot, and to have
sold about the same number of lots for
prices ranging from $25 to $1o0 each.
Using the mails to defraud was the
charge brought by the Federal inspec-
tors.
Dr. J. B. Horinstein was taken into the
dragnet on a charge of misusing the
mails by mailing circulars. claiming he
could effect the cure of certain diseases.
Jewe1ry Is Held.
The charge against J. II. Lepsch, a
prominent jeweler of Ridgeway. Pa. is
out of the ordinary. Lepsch has been
pressing a claim against the Adams Ex-
press Company for $500 worth of lew
elry, alleged by him to have been lost
or stolen in transit In pushing the