Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-01-08
five hundred Mail Order
SWIDdlerS Arrested
Last Year
Which Ensnare
Advertisers LikeDed
10 QuaCks
By JOHN CALLAN OLAUGHLlN

Dy JOII4N SA1<LIk1AN LA
Washington, D. c., Jan. 7.-Durine
the last fiscal year SO mail order
sWindlers were arrested, and 304 con-
victed. The operations of those ar.
rested and convicted are estimated to
have cost the public the enormous
sum Of $54,00o,000. ..~
During the preceding two years
! 900 persons were arrested for sWind-
ling through the mails, and the esti-
mated losses to the public through
the fraudulent operations represented
by these arrests amounted to over
$120, 0OO, 900.
1t is a worthy activity in which the
%postoffice department is engaged. In
order to further protect the public
from green goods men, bunco steer
ers, fake promoters and the like,
the present administration particular
ly is enforcing the law excluding nu-
merous sWindling schemes from the
use of the mails.
Get "Ad" Money by Fraud.
1t is estimated that 5000, DOC, 1000 is
paid annually for advertising in daily
newspapers. The rate obtained by
each newspaper for the use of it's col
umns by an advertiser is based very
largely upon quantity of circulation.
There are newspapers in this II
try which deliberately lie about their
circulation. In short, they obtain
money by misrepresentation. They
are as guilty of fleeing the advertiser
are the green goods man, the bun
co steerer, the fake promoter, and
others of like ilk.
The federal laws prohibit the ad-
and sale through the
mail of loaded dice.
The fake circulation statement is
the same kind OF a device.
The federal laws prohibit the sale
IF mining and other stock claimed to
have a value that does not exist.
p. The fake circulation is the same
kind of a scheme. r.
The federal laws prohibit attempts
to obtain money through the mails
by mean Of false or fraudulent pre-
representations, or promises.
,The fake circl1l ))tion statement con
stitntes false ~nhetense, false repre-
sentatiOn, Or promises.
Can Punish Guilty Papers.
Legal officers OF the administra-
ion believe that newspapers guilty
If cheating advertisers and the public
inflated circulation claims
be prosecuted for fraud, Section
9l5 Of the Penal Code Of the United
provides:
Whoever having devised or in
ended to devise any scheme Of arti-
ice for obtaining money Of property
~ e of false or fraudulent prom
SEES, representations, or promises, :.
. shall, for the purpose of executing
such scheme of artifice, or attempt
ng SO to do, places or causes to be
any letter, postal card, pack
age, writing, circular, pamphlet, or
advertisement. whether addressed to
my person residing within or with.
tut the United States, in any post
'ffice or station or station, thereof
'ffice or station thereof, or street, or
'ther letter box Of the United States,
IF authorized depository for mail
natter, to be. sent or delivered by the
'ostoffice department of the United
states, or shall take or receive any
UGH therefr0m, wheter mailed with
n or without the United States, or
hall knowingly cause to be delivered
" mail, according to the direction
hereon, or at the place at which it
$ directed to be delivered by the per-
on to whom it is addressed, any such
etter, postal card, package, writing,
ircular, pamphlet, or advertisement,
hall be fined not more than 81, 900,
# imprisoned not more than five
ears, or both" =.
Fake Circulation Figures a Fraud
A fake circulation constitutes a
cheme to defraud; and it is executed
y causing to be placed in the mails
n the way described in the law.
he courts uniformly have held the
Jew that misrepresentation through
he mails for the purpose Of induc-
ng people to believe they are buying
omething worth more that the ac-
ual sales price is punishable under
he above statute.
According to the first annual re-
'ort Of Postmaster General Burleson,
he issuance of fraud orders against
windlers using the mails to conduct
chemes to defraud the public is as
desirable for the protection of the
'ublic as ire prosecutions. In some
to which he called attention.,
blenders have continued the opera
ionof their fraudulent schemes dur
ng their conviction and imprison-
nent, during all Of which time the
public was left at the mercy of the
'windlers in ignorance Of the prose-
and in reliance upon the in
of any concern which the gov
eminent permitted the use Of the
nails.
"The very use of the mails itself"
lie continued, was advertised by
some Of these fraudulent concerns as
IN evidence of the fact that they
doing a legitimate business or
The government would not permit
hem the use Of the mails"
Some Papers "Boost" Figures
The publicity law OF 1912 requires
,,hIsc1,ovr, 80 lnsI., HE ,a,,,,,,oy,1w tn