The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-11-22
ChargedW ithSwindling
Public Out of More
Than $40, 900, 900.
OFFICIALS ARE
UNDER ARREST
Raid So Important That Post
rnaster-General Takes Charge
in Person-Declares People
Have Been Mulcted Out Of
S1oo,ooo,ooob by Fraud
ulent Use of Mails.

New York. November 21.--1n raids
so important that Postmaster-G General
Hitchcock took charge in person. his
inspectors fell on two concerns this af-
ternoon which they charge with
swindling the public out of more than
S40000000 by fraudulent use of the
mails.
Sheldon II. Burr, president of Burr
Bros; Eugene II. Burr, secretary and
treasurer OF the firm, and Frank H.
Tobey, It's yice-president, were arrested
in the first raid and held in $4,000
that the firm sold between
4o,ooo.Ooo and s50,Ooo.ooo of mining
and oil stock worth little or nothing.
Charles l. Vaughan, a director OF
the Continental Wireless Telegraph
and Telephone Company. incorporated
in Arizona, was taken in the second
raid and held in $4,000 bail. Inspec-
tors say his company has sold stock
to the amount of at least 100000
which has brought in no return to the
investors Vaughan is treasurer OF
the Columbia Finance Company. which
acts as fiscal agent for the Continental
Wireless Telegraph and Telephone
Company. and had charge of the Con-
tInental Offices in this city.
Mems business.
Both raids to-day are further evil
dence that the government In it's war
fare against all alleged swind1ers
means business. and no longer will be
content with issuing fraud orders deny
ing them the use of the mails. but will
press for convictions on criminal
charges.
The present campaign began some
months ago. and has resulted in the
arrest of Louis Celia and his asso.
ciates, charged with operating string
OF bucket shops; the officers of the
United wireless Company. the Ell Pro.
Sresso Banana CompanF. the United
Exchange, OF Chicago. the steele Mil
Ter cotton firm, of Corinth. Miss, and
more than sixty other firms in all
parts of the country.
postmaster General Hitchcock esti.
mates that the public has beer
fieeced out of at least sl0o,ooOoo0 by
eet-rich-quick concerns in the last
hFe years, but says their ileyday has
gone. The Post-oiiice Department in
tends TO keep after them every min
ute, and Mr.. Hitchcock said to-day
mat other arrests, involving corpora
tions that have sought investors the
length and breadth of the country are
expected shortly. His statement fol.
lows.
The arrest to-day by post-otfice in
spectors of the principals in impor-
tant companies. Burr Brothers, with
oftices in the Flatron Building, and
the Continental Wireless Company,
with headquarters at SO Pine Street.
constitute two more cases in the series
of Investigations that the postal au-
th0ritfaG ID
crusade against the fraudulent use of
the United States mails.
With the work accomplished to-day
seNenty-eight such cases have been
brought to head during the year. It
is estimated that the swindIing opera
tons of these seventy-eight cases
have iilched from the American peo-
pie in a period of five years over $780,
900, 900.
Plans Carefully Laid.
The crusade now in progress is the
result of carefully laid plan OF soma
months ago, the first step in which
was thorough reorganization of the
insp ection service with the selection Of
new chief office inspector Ger
tain changes We're made, reorganiza-
ton was affected, and instructions
We're issued to the newly assigned In
spector in charge to take UP and pro-
secute vigorously all pending cases of
frauds against the mails. Owing to
the extent of these cases and the large
amount of work involved, it was neces-
sary to detail a considerable portion
of the force of post-ohice inspectors.
The best men in the service We're
selected for this work and Were sent tc
their tasks with the assurance that
the department at Washington would
back them up to the fullest extent. In
order to strike at the root of this evil
the department directed its agents to
go after the men higher up in these
gigantic schemes to defraud, and to al
low no influence, however powerful, to
prevent the proper punishment of the
offenders. Through the assistance OF
the Attorney General, the full CO.
operation of his department was Sc
cured in the successful carrying out Of
this crusade.
Vast system of Fraud.
AS the work OF investigation pro-
ceeded, 1t became apparent that the
more extensive than had been realized
by the department. a vast system OF
fraud as far-reaching in. Its. ramltca-
tons as the postal service itself had
who, through the grossest forms Of
Misrepresentation, We're stealing from
the people millions Of dollars annually.
These fraudulent operations have not
Investors, but; have created lack OF
confidence nAegitimate business enter
prises. It Is therefore as important
to the business community to have
these frauds stopped as it is to the
people whose losses are directly trace
able to them" AZ
The Postmaster General declares in
conclusion that .'the results already
accomplished by the department repre-
investigation and prosecution will pro-
ceed With all possible yigor until the
swindling of the people through the
use of the mails is brought to an end
SCI forth In the complaint of William
B Robinson, postal Inspector, Is that
on June 4, 1910, lie devised q scheme
to defraud Walter N, Altman, of 20Ol