The Washington times., 1922-07-15
WRITER bARESl
RESURRECTION
. Of: CON GAME
Says Epidemic Of Swindles
Perpetrated on Investors
Continues in New Form.

The amazing epidemic of swindles
perpetrated on investors continues
In new and surprising forms. One of
the most strikingly consistent trick.
cries recently unearthed is a new
variation Of old real estate swindle
schemes. developing out of the hous.
ing shortage. 1t appears also that q
number of other organizations are
systematically defrauding innocent
country-home hunters, says a writer
In 8. w. Straus & Co.'s Investment
Magazine.
One company purchased land In
several nearby New Jersey towns and
each tract was divided up into lofs
70 by 100 feet. The organizations
then hired fifty or sixty statesmen and
a number of III canvassers. 49,
These young women would convass
from house to house in the poorer
quarters OF town, seeking as pros-
poets foreigners, ex-soldiers, and Md
ows of soldiers with a small pension
and Government insurance. The salsa'
woman would describe in glowing
terms a certain subdivision OF prs,lS-
erty Tar from the noise and dust az
New York city. Then she would ex..
plain that certain lots were to -
given away free to prospects who,
drew lucky numbers. 49,
The victim was asked to sign Ma
name and address on a card so tha
ne might have a chance to win t3e
Tree lot which, IL he won, would cosr
MIN absolutely nothing but the rea.-
istration charges. the expense yof
drawing the deed, and other suasil
fees. ~
On returning to the office. &.
sls turned this prospect" card
over 10 salesman. and several dave
later' the victim would receive
cali ana hear the glad tidines thnf
he had drawn a free lot. He wos,I6
then pay the fees which amounfed
to $40 and arrange to 60 on an ex-
cursion to see his property. Es9l
Every Sunday, excursions were
held and attended by hundreds OF
men and women who had supposed-
ly won free lots. At the trial az
one OF the swindlers, one witness. =
former salesman for the COMPANY.
admitted that the purpose of these
excursions was to induce the Gus.
toner to buy other and more desfr-
able property. 1t developed that the
company kept within the petty lar-
ceny laws by charging S49; $50 or
over would have laid them open To,
a charge Of grand larceny. The
salesman's poetic description Of the
property was backed up and sup
ported by the catalogue of a com.
pany OF similar name in Michigan
engaged in a wholly legitimate bust
ness, which the statesmen Of the
free ,lot"'> concern palmed off as
their own. 80
There were many variations OF
this scheme, but none of them APP
pears to have been anything but u,
means Of defrauding these poor peo
pie Of their accumulated savings
The free lots. n developed, were moi
worth more than the $40 charged.
Another company was charged
in several cases with having taken
sums of money varying from $15p.
to $500, as part payment on ths
construction of dwellings, after
promising that ground would bf
broken at once when the specified
sums were paid. Later the custom
ers were told that the sums woulc
have to be doubled before wort
would begin or that plans wouh
have to be drawn and paid Tor.
Victims were given to understand
that the contract could not be car.
ried out as first specified. "a
There are a number Of firms eni
gagged in this fraudulent home build
ing and free lot" business: accord
ing to the authorities. 1t was said
that outstanding accounts Of over
one million dollars Appeared on the
books Of one concern due from
: persons upon whom free lots" and
then "purchasable lots" were un'
loaded.
The attorney for the victims said.
There are about twenty-five OF
these companies and they were
ready for a harvest from the poor
and unemployed this summer. The
revival OF the old swindling schemes
is a direct result of the housing
situation. Persons living In hot.
expensive, city tenements Jumped
at a chance to live in the country.
III