The Birmingham age-herald., 1914-03-10
R. E. Kelley Arrested for Receiving Money Under
 False Pretenses
CLAIMS TO REPRESENT
 BIG TEXAS LAND co.
Authorities Believe Investigation Will Bring to Light Most Stupendous Realty Fraud in History
 of the City

R. E. Kelley. a well groomed and prepossessins looking young man, was arrested last night as he stepped off the 1920 o'clock train from Chatta- nooga at the Terminal station by Offi- cers II. B. Brown, ]. M. Mehaffey and M. w. Alexander, on several charges, among which receiving money under false pretenses was the most serious. Kelley. following his arrest was turned over to Detectives Williamson and Mitchell and brought to detective headquarters. -He will not be allowed bond pending q thorough investiga- ton into the charges against him.
 Kelley is charged by the police Of being the local representative of one of the most stupendous realty fraud schemes ever brought to light here. The police state that hundreds of Birmins- ham people have been victimized by the man who was furnished with elabor- ate credentials. The police yesterday afternoon raided the offices of the Gal weston Investment company. room 5J9 Empire building and they state they have the necessary evidence to con- vict Kelley on the charges of running lottery, securing money under false pretenses, doing business without license and violating section 597 of the city code.
 Came Here Two Weeks Ago Acording to Officers Brown, Mehaffey and Alexander. who raided the offices of the Galveston Investment company yesterday. Kelley is the local manager nj, | in fact Of the company. 1t is stated 1 that Kelley first came to Birming- ham two weks ago and rented offices in the Empire building. Ii is then
 stated that Kelley caused to be dis tributed about the city thousands of red tickets bearing number and on which was printed the information to save the ticket as the number might 1 be the winner of d free lot. Following 1 the distribution of the tickets it is l alleged Kelley then distributed letters
 to the various holders of tickets but | that he carefully avoided the mails and l always had the letter addressed in lead pencil, but with no name delivered by a paid messenger or agent. | copy of the letter follows: Birmingham Office, ''509 Empire Building. 1 ITO Whom It May Concern
 "A few days ago we distributed sev- ieral thonsand tickets in this city, of which the 20 numbers given at the bot tom of this letter have been selected l for the free lots If you hold any one of the numbers given. you will please ipresent your ticket at our Birmingham office in person not later than four l days from date of this notice, and have your deed and abstract of title made.
 If the lot is not claimed within | the four days, same will be forfeited
 to the company and the ticket will be
 void.
 Lots Located in Texas "The 20 lots are located in Figland, | 3S miles northwest of Houston, on main l line of Trinity x Brazos Valley railroad. and will be given away to Birmingham citizens without any restrictions. This 1 is done to advertise our fruit and
 truck farms Parties holding lucky tickets do not have to buy any other
 real estate to get the lot.
 Now, a word about our truck farms Lands in the following coun- ties, Montgomery Galveston and Bra zoria, located or either electric or steam roads, can be purchased in tracts to suit on easy payments; no interest
 or taxes. Booklets giving full partic-
 ulars can be had by addressing the president or secretary at the home
 office.
 "Further information will be gladly I given at this office, We are, Yours truly,
 "GAI.vEsToN INVESTMENT CO.
 ''5es Empire Building, Birmingham. Ala. l Alabama.
 "Office hours. S:30 a. m. to 5:30 D. m.
 List of numbers winning free lots 5ss, 1127. 171s. 2247. 273s. S392, ss7S
 4s19, 49S7. 5411, 5sS7, 63s1, 6sol. 1923, l 7T9G, S241. S915, 9117, 97O3, 99O7."
 Hundreds Win Lots
 After the receipt of the letter the po- lice alleged that hundreds of men and l women in Birmingha undiscovered the l fact that they had won a free lot out | in Texas. although the letters state that only 20 lots are to be given away. The police state that they found in the of j.fices of Kelley yesterday afternoon thou sands of red tickets all bearing duplicate lnumbers and never found a ticket in the huge pile that did not bear a winning number
 It is further stated py ythe police that as soon as the winners of lots appeared
 at the offices of the Galveston Invest ment company they were graciously re- ceived by Kelley and his agent They were shown maps end blueprints and given information regarding Texas fruit lands. They were not urged to buy any land. but were told that to get the free lot they must pay $6.75 for the deed and the abstract of the lot According to
 the police who have been watching the offices of the Galveston Investment company for several days. scores of poor men and women came to the offices paid $6.75 and received a copy of deed and and abstract for lot in the town of Ffgland. Tex. The police claim that they I discovered large bundles of printed ab-
 stracts and deeds in the offices of the Galveston Investment company. all con- tair,inE practically identical averments,s / Although the police had been suspicious of the Galveston Investment company for several days. and had received nu- merous Complaints, no definite action
 was planned until Policeman J. M. Me
 haffey, residing at 7231 Second avenue,
 south, received one of the enticing let ters. He consulted Acting Chief Martin
 Eagan and was detailed with Plain
 clothes Officers Brown and Alexander to
 the office of the Galveston investment company, and were told that Kelley had , gone to Chattanooga, but would return that night at 1920 ociock. The officers then seized all the evidence they needed
 in the office and awaited for Kelley s
 return. He arrived on time and was
 promptly placed under arrest by the police officers. Later, however, on the demand of the detective department Kel- ley was turned over to tine detectives for
 further investigation.
 Il Company Unknown
 Officers Brown. Alexander and Mehaf-