New Britain herald., 1924-01-01
ACCUSED OF FRAUD
 IN POSTAL CLAIMS
New Yorker Said to Have
 Collected SSO,OOO

New York, Jan. 1.-Morris No=el ot 4i4 Broadway. New York, and 5G West Twenty ninth street. Bayonnc N. J.. was arraigned in the federal court before Judge Mack yesterday and charged by Pos, Office Inspector r. D. Boyle with fling false claims for indemnity against the government for losses through the rifling of in- sured parcel post packages, Ii" plead- ed not guilty and was released in 8. 900 bail. The arrest followed months oi investigation by Boyle, who alleged that Nogel had in two years collected sS0,00a and that claims approNimat- ing s15.000 are still pending. What amount of these the government thought it had paid or fraudulent representations was not stated. Before January. 1922. the Speciality 0raNat company was operated at 3I Walker street and the M Nogcl Neck wear company al 40 Broadway They combined about the beginning of 1928 gGd moved to All Broadway. and fwere operated. the inspector said, under the name of the Noeel Neck wear company. The NOg,l concern ran about three months and tho name was changed to the Lion Nvckwear company. with NogcI aS owner. The latter is also said 10 run th" RrnOwn Jewciry company. a.so ar 4l4 Broad- way.
 These firms are said to do business on the consignment plan that calls for the return Of goods not accepted by consgnee. Nogcl, fl was stated, sent out several thousands of parcel post packages a week. So many claims were made by him that the post office some months ago began an investiga- lion.
 Until Dec. the insurng Of parcel post packages was, for the accommo- dation Of the general public, made as free from restriction as possible. Packages insured were delivered with out any check-up at the point Of de- livery. Because Of the increase in fraudulent claims the post office now requires that all insured packages bc signed for when received.
 The Post Office authorities said that among those in certain lines Of business there had arisen a saying, "Unclc sam is our best customer" This meant that ii was more profit able to have an insured package lost than 10 have il delivered When a claim for indemnity is made by q shipper, the investigation follows the package to destination, and the per son 10 whom Il was addressed must make an affidavit whether the pack age was delivered,
 In the casr of goods that were sent on consignment, and thc person to whom fl was sent making affidavit that he had moi accepted the shipment ihr authorities mnst accept th" word of the consignor hat he never rccriv- cd tho package back, and pay thn claim unless they find somo other method Of checking mp Where a pbnsiness man is sending out thousands of packages it was impossible under ihc old system 10 find out whether tkc package upon which insurance was claimed had bron actually rc- turned to the sender and received by him.
 This class Of fraud. ihp authorities said began with th" egg business and resulted in the breaking up or sn- called egg ring that was making for tune claiming eHerssvo brcakag". ln- specior kenlon obtained five. coHyic-i tions for these offcnsrs.
 Now. il was stated th" fraud has extended 10 many lines Of trade and the Post Office has been compelled to tighten up its methods
 The Government has paid claims
 
 or dollars many, if not the majority of them being in and about New York. where the consignment business has grown tremendously Nor" than a9 percent of thr nrckwrar output is shipped by mail
 How great a sum of money was