The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-05-07
CHARGE CONSPIRACY
TO VIOLATE LAW BY
Use OF The MAILS
Alleged That They Offered In
vestors Large and Unreas-
enable Returns.
SOME COMMUNICATIONS
WERE VERY TEMPTING
Illegal Practices Date Back TO
1918, According to In
vestigatiOns of Jury.

yestigatiOns of Jury.
An indictment charging conspiracy
10 violate the laws or the United
| States by unlawful use OF the mails in
furtherance OF scheme 10 defraud.
was returned against William j.. Ne
Cullom, Robert f. T. McChskiu. Les
lie +. Perrine. Charles A. Perrine A.
z. Kastler, NJ. z. Cartwright and J.
f. Goss by the federal grand jury yes
terday All persons named are alleged
10 have been connected at one time or
another with the development pro-
gram carried on By the Valparaiso De-
velopment Company and others at
Valparaiso, In the southern part 81 Okla
loosa county
Three of the defendants. Leslie Per-
| rine, McCackell and Goss made a bond
| Of $500 yesterday afternoon. Cart
wright was also in Pensacola. having
arrived from Valparaiso yesterday
morning.
IT is understood that McCunom's
home is in Allentown. Penn. Goss
was formerly Of Cleveland, and Cart
/ wright is a native Of Kansas.
| The indictment consists OF 20 pages.
one of the most exhaustive ever re-
turned here. II contains, along with
the other charges against the alleged
| spectators, verbatim copies Of letters,
| circulars, and statements alleged to
have been placed In the postoffice at
Valparaiso for the purpose Of attract
| ing the attention Of would-be Investors
| By offering large and unreasona Bile re-
| turns on any money invested in or
with the corporation Some OF these
| communications carry very attractive
and most all promise exceptional prof
its and dividends
In letter alleged to have been WRIT
ten and mailed April u. 1921. the com
pany claimed to have total assets 10
the amount OF 81 .239. 1878. with total
debts for accounts Of only 80. 1865
In this same communication 1t was
claimed that something like 10000
acres Of land had been purchased on
which homes, or vallas. would be con
structed. Among other things the in
dictment alleges that the defendants
made the appeal more convincing and
attractive by laying claims 70 oil lands
and promising Or prhphesying that in-
vestors would be made Independent
Another scheme, charged 10 the In
dictment is the ARRANGEMENT By which
villa sites were sold in connection with
certain acreages Of cane lands. a part
OF the profits Of which the purchaser
would be entitled. Fifty dollars was
set forth as first payment toward the
purchase Of a villa site. as outlined
in the charge. and by contractual ar
rangement the remai nder paid fl either
a single or In monthly instaliments.
Five hundred bungalows row being
built" stated another Of the communl-
cations. and IN still another It was
asserted that investors had been paid
over 100 per cent at the expiration OF
the first year and that f was Eek
pected TO do better"
The 20-page Indictment Is filled
throughout with charges Of speculation
and schemes that outrivai those q
Ponzi! Positive guarantees Of immense
profits, claims OF oil. promises OF en-
richment, comfort and luxury, all on
which the indictment alleges were en-
ployed to induce investment.
The Illegal practices date back 10
April IS, 1913. according to the result
OF the investigation BY the grand Jury.
and the government claims that from
that date on the business Of he con-
Germ was EDAAuCAtu III ~ manner IN
consistent with the law and contrary
to the postal regulations 1t vas on
that date that the defendants first en-
tered the conspiracy TO commit an Of
Tense agains the United States. charges
the indictment. And Il Is further
stated IN the charge that they devised
the scheme TO defraud any and all
persones who could be induced TO send
the defendants money"
The first investigation began sew
eral months back when hundreds oe
complaints are said TO have been re-
ceived In Washington. Postal authori-
ties and government agents were de-
tailed Immediately % make a thorough
Investigation into the matter ana they.
with the cooperation Of the local au-
thornies. began to collect data. cir
culars newspapers, letters. in fact. AL
kinds OF evidence which VIII be used
in the prosecution OF the governments
case. The names Of the special men
who worked on the case we're not re-
vealed yesterday.
Run1ors that she grand jury was con
sldering she case were heard days ago.
(Continued on Paue T~o1