The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1912-02-06
SWINDLERS Who
USE The MAILS
They Got S77,OOO,OOO From
the Public Last Year.
DISTINCT CRIMINAL CLASS.
Chief Inspector of the Postoffice De-
partment Reports on Arrests and
Convictions - Effective Stop When
Promoters Have Been Found Guilty.


Robert S. Sharp, chief inspector of
the pOstoffice department, in his annual
report says that the fraudulent pro-
mOters who have been put out of bust
ness by the postOffice department in
the last lear have obtained the enor-
nous total of $77,0OO,OOO from the gull
lible public. In the crusades which the
department has made in the last year
against these men 500 individuals were
indicted. 497 arrested. 1S4 convicted,
IL acquitted, and 1T are awaiting trial.
There are also seventy-two awaiting
action by the United States grand jury
and forty eight fugitiyes from justice.
Inspector Sharp says:
The determination to bring these pro-
moters into court and obtain prison SEN
fences against them have proved exceed
ingly successful, as evidenced by the re-
suits set forth in this report In no in
stance, as far as known to this Office has
person convicted of a criminal charge of
this character attempted to reorganize his
scheme under new name, as was often
the case where fraud orders alone were
resorted to-
In a number of cases in which arrests
have been made owing to the volume of
letters received daily by the culprits it
has been found advisable to ask for the
issuance of fraud orders, and the office of
the assistant attorney general for the
postoffice department after a most care
full consideration of all the facts in each
case concurred in the recommendation of
the inspector. This action on the part of
the attorney generals Office has been the
means of saving many thousands of dol
lars to the public.
The result of the years work has devel-
oped the fact that these fraud manipu-
lators are a distinct class of criminals
some of them moving in the highest social
and business circles, but nearly all having
more or less affiliations and connections
with or are advisers of schemes or enter
prises Of illegitimate character in which
they are not known as promoters.
The cost in time money and talent to
the government of the investigation and
prosecution of these cases and the corre-
spending loss to other exceedingly impor-
tant features of the postal service de-
handing attention are apparent and re-
new my recommendation of last year that
the department of justice take over the
investigation of this class of cases.
The work of the past year has uncov-
cred condition among the swindling
class which shows the astounding extent
of their operations and the enormous
amount of their i'll gotten gains AS
shown elsewhere, only the few swindIing
promoters who We're arrested last year
obtained approximately $77,OOO,OOO There
are doubtless numerous persons operating
similar schemes, as evidenced by the COM
plants which are pouring into the depart
ment. Encouraging reports from the CEN
tiers of population are being received to
the effect that a number of the smaller
swindlers have discontinued business and
their whereabouts are unknown. The pol
icy of the department in attempting first
TO crush out the strong and powerful
criminals who have grown rich at the
game has proved exceedingly effective in
eliminating the smaller ones