Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-02-08
MAIL FRAUDS GATHER.


The SwfndIcrs Renped over *'SNW.Wo
Last Year From GuIIibIe Americans |
washington Correspondence to New
York Timcs.)
From the final reports submitted by
inspectors covering the arrests for the
fiscal year, 1t has been ascertained that
the promoters OF fraudulent schemes,
who have been put out of business dur
ing the past year, have obtained approx
imately s77,oO0,00o from tho public"
This Is the astonishing statement made
in the annual report Of X. s. Sharp,
chief postofiicc Inspector. 1t will probably
be incredible to the average person that
there are enough "easy marks" In the
United States to contribute s77,O0,0o to
operators of "get-rich- quick" projects
but, according to the chief inspector
this amount does not represent nearly
all that went into the pockets of swindl-
crs. The $77Ooo,OO Is the profit OF those
who have been caught and does not take
in those who are still operating.
"These fraudulent schemes" said
Chief Inspector Sharp, cover wide
field, and are of endless variety-from
tho simplest business transaction 70 gi-
gantlc project involving the sale of
worthless stool; in fake mining companies
and fictitious institutions existing only
on paper or In the minds of the pro-
motors. The result of tho years work
has developed the fact that these fraud
fnanipulators arc distinct class Of Grim
inals. some moving in the highest sicial
ana business circles. but nearly all hay
ing more or less Affiliations and connec-
lion with, or are advisers with. schemes
or enterprises of illegitimate character.
in which they are known as promoters"
Continuing. the report says: The work
OF the mast year has uncovered a condi-
tion among the swndling class which
shows the astounding extent of their
operations and the enormous amount Of
their il-so,ten gains. Only the few
swindling promoters who were arrested
last year obtained approximately s7I.o00-
60 There are doubtless numerous per
sons opera ing similar schemes. as owl
denced by the complaints which are pour
ing into the department. the public owl
IDENTIFY becoming more familiar with
their methods as n result of the year.
crusade and the publicity given cases of
this character by the daily press through
out country which has proven Of great
assistance in protecting the American
Ingenious operators.
"F.ncourag eng reports from the centers
of population are being received to the
effect that number of the smaller swim
dlerss have discontinued business and their
whereabouts are unknown The policy
of the department in attempting first to
crush out the strong and powerful GRIM
inals who have grown rich on the game
ia,
mating the smaller ones.
"A large portion of the time of the in
spectors has been practically lost in the
INVESTIGATION of cases, in which persons
were clearly msrepresenting the facts by
the use of the mails and obtaining large
sums OF money thereby, because as a re-
suit of legal advice they have only reach
ed the border land between legitimate
under, ak!ngs and criminal schemes,
making it difficult for the inspectors to
prove the intent to dofraud as provided
by law. although the existence of actual
fraud is indispu; able
During the fiscal year 1911. 500 indi-
viduals were indicted on charges of using
the mail in furtherance Of schemes to
ldefraud During the same period 196 per-
sons were tried. OF which 1874 were con-
ling trial, while r. are awaiting grand jury
action. and oS We're arrested but not In
dicted Tho number who got away and
are being traced e. &c.
The schemes in which thera We're con-
victions gene rally fell under the following
groups:--
or other stocks.
foIy
and athletic contests,
Fake land schemes.
Commission merchant swindles
Selling worthless goods through mis-
representa- tions.
Obtaining commissions on fraudulent
orders.
Work at home schemes.
Failure to furnish goods schemes.
Fake correspondence schools.
Sale Of cheap books and divining rods
Cor locating minerals.
Phouev guarantees Of stocks and bonds
Forged bills of ading in cotton deals
4 brokerage swindles.
( Obtaining money by impersonating
others
Selling state rights and establishing
fictitious agencies.
Selling unfair gambling devices.
mo fund" check schemes
Matrimonial schemes.
Selling Cancelled postage stamps and
Mexican money.
Turf tipster schemes.
Selling cigar outfits.
! Defrauding employers by means OF
forged leases and keeping money receiv.
ed from cash customers.
HOT ms mt
alleged injuries.
Obtaining expense money in promises tc
sell stocks.
Requesting fees for fake positions
Selling the rights to a patent many
times over in the same state.
Securing advance payments on goods
not delivered.
Obtaining payments from relatives OF
deceased persons for goods supposed &c
have been ordered before death.
Obtaining money from alleged heirs to
estates.
fake nheritances
Sales of fake recipes.
Green goods swindos.
Obtaining subscriptions for charitable
institutions.
Fake employment bureaus.
Selling interest in nonexisting moving
picture theaters.
Selling diplomas and requiring little OF
no study before granting them.
Offering to instruct persons in the
science of mind concentration.
Fake trance mediums