Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-04-11
ORGANIZED SW|NDLERs
.INFEST SOUTH's RESORTS
Nations Winter Fairgrounds
Are Haunted by Schem.
ing Gangs.
CLEANUP NOW IN PROGRESS
decent Frauds Stir POST Once auu
Justice Departments TO Strenuou,
EHorts- Apparently Legitimate
proposals Used TO Trap Men.
j. Frederick Easary,
washington Correspondent OF
rrit,,nn

Washington Correspondent OF Tho
Times Dispntch.)
WASHINGTON, April 10-An orgy
or swinhlinE by which organined
bands have reaped millions In the
/ Fairgrounds of tho wealthy IN South
')rn United States Is coming ID light
through investigation OF the lbss OF
s20.OOo by an Ohio man in a nusinesa
denl in Florida which turned out to
he "A fraud.
That post-oficn inspectors arc
pushing n thorough Investigation.
/ Win fair prospect OF making a
| clean sweep OF tho swindiors md
terminating their practices in the
gathering places OF wealthy tran
ricnts In F!crtla and elsewhere in
Southern United states was disclosed
tonight.
DrnKncs Out for swIndIcrs.
Federal nuthorities are closing "a
nc; In whiGh they expect to catch on
charges 81 g<dnd larceny those who
robbed this latest victim. They
hope 10 inspire a cleanup among
the Southern pleasure resorts Of
systemizcd fraud by confidence"
men and "burko stccrers," who, with
all tho old tricks. FROM wire tapping
To lost pnckctboDks. and with all
tn" modern trimmings from opera
lions In exclusive clubs to use OF
tors who go South 10 the expensive
nd faahionabl. vacation places.
- j. Nicholson, Diilonva'e. Ohio
banker and coal operator. In con-
nection wi,h "A recent pleasure trip
10 Miami. Fla. il 10 learned. was
persuaded To interest himself In q
land investment. with others. and
according 10 his representatives. wnb
iohhcd OF 100000 which had been
".p"sitod as part or the deal. IL.
agcnta arc running To earth members
OF confidence" gang, and expect
70 make arrests on charges NJ grand
larceny. Former Chief OF Police
lith of Cleveland. has remained
In Florida, while Frank ". ETulson.
attorney, and Mr.. Nichol.oo have
como East 10 continue phases or
thei. Investigation
consui:- With Postal omcinI.
Mr. poulson has been In consul.
Ration here with Rush y. Simmons
chief post once inspector, regarding
the ease. and held series OF con.
fcrcnccs with officials and other,
who visited him and Mr.. Nicholson
ut their hotel
That Investigations are under way
ana that the results already show cx-
tcnsirc end organized fraud which liz
reaping golden harvest for the
Southern resorts. riding traina and
haunting the good hotels. was CON
Armed by the Federal government
today
W. i. Burns. director Of the bureau
OF investigation Of the Department
OF Justice. said the cases came un-
der the province OF the post.oil,cc
inspectors. but that the swindlers
had cleaned w 100000 in the
south. Recently an Ohio case came
10 his notice In which the prospec-
tive victim was to have posted 49,
900 in "a deal. and operatives. going
VITA tn" man when he went Ia put
ur tho money. gathered in Ave
rriSrncrs: whose trialx are being
rou,!uctcd by post-otlice inspectors.
II is little early. Chief Post
one" Inspector Simmons indicated
tonight. 10 reveal the fun scope of
the Investigations and all OF tho
practices which are trapping the un-
wary and yielding profits to tho
crooks.
General Cican-up In Prospect.
But. H. der!ared the department
was cnCourl ecI TO believe that II has
n strong chance II making n general
cleanup aa the result Of It's ef-
forts.
The most recent Ohio case involv-
inS MI NICHOLSON, VINO suffered In
what !lai the appearance Of lcgiti-
n.'tr r-aL estate enterprise. is but an
l.!:;"::l. ~ 10 tie sweeping operations
Of the s"irdlers. and its clcarlng-up
IL but part OF u general movement
by the lrcocral authorities 10 smash
The operations which have taken
so ,nUcn from the pockets OF visitors
TO the fashionable Southern vacation
grounds
Efforts 10 recover $4,000. OF which
Mr. Nicholson vas robbed, led Smith
and pOulson. with Federal assistanc.
bnih from the postal authorities and
Department OF Justice. into discov-
cry of what seems TO them TO be a
most Vicious system of criminal
operations.
1t has demonstrated also, at least
To the satisfaction OF these investi-
gators. that the gangs preying on
the wealthy patrons of the South
ern resorts do not connne them
selves To a single line of action, but.
rs in the Ohio case on which they
have been 'orking. involve sub
stantial business men, who would
have nothing to do with question
able schemes like horseracing or
stock gambling. in deals having every
appearance OF legitimate invest
mcnts.