The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1925-09-03
Kenosha One of Cities
Where Alleged Fraudu-
lent Land Co. Worked.
BUBBLE IS BURSTED
Federal Officials Arrest Five
in Chicago Connected with
Operations of Company.

arrest in Chicago late Friday of prin-
cipals in what officers declare is a
$10,000,000 Florida land fraud, which
has been cleaning up vast sums at the
expense of legitimate Land dealings in
the southern boom state. 1t is claim
ed that the company in question adj
vertised in Kenosha and had no doubt
sold some of its so-cailed valuable"
property to Kenoshans.
The alleged wildcat promotional
company is the Florida Land company,
whose Offices are in Chicago. So far
as Kenosha was concerned, it operated
entirely from the Chicago Office, using
the mails to secure sales here. There
was no Kenosha agent of the COM
pany.
Five Named in Warrants.
Those named in the warrants issued
by Court Commissioner Henry G.
Better in Chicago and revealing the
alleged fraud, are:
Jacob Factor, president of the COM
pany, said to have been barber for
merly.
Henry Heinsius, formerly in the
bond business and alleged right-hand
man of Factor Several weeks ago he
was found guilty of operating con-
fidence game.
Maurice E. Drucker, reputed expert
in organizing high pressure statesmen,
known as "airedales."
H. j. Hummelstein, salesman and
Newton Feldman, promoter, de-
scribed as zone who almost believed
his own stuff"
Find Offices Deserted.
Shortly after the issuance of the
warrants, postal inspectors made a
raid on the former palatial headquar-
tiers of the concern but found the Of
fees deserted.
The specific charge against the mem
bers of the Florida Land company is
violation of article 215 of the criminal
code, which has to do with using the
mail in furtherance of a scheme to
defraud. Advertisements in number
of Chicago newspapers and in adjoin-
ing cities are cited as part of the al
legged use of the mails to defraud. 1t
is also claimed that the patrons dis
covered first by advertising were cir
cularized through the mails closing
the deals.
Federal officials declare that more
than 1000 lots have been sold by the
company and that its business has
amounted to nearly $1,5oo,Ooo since
last March. G
Made Glowing Promises.
Large tracts of land in Orange coun-
tv which were sold in Chicago and
the midwest by the Florida Land
company at an average of 500 lot.
The lots were represented as being inn
proved, with water, gas and electricity,
some on the Dixie Highway and in a
suburb of Orlando, Fla.
The company advertised extensive
Nv in Illinois, Indiana, Wisconsin and
Iowa and sent out a boosters commit
tee including Chicago alderman and
police captain who brought back glow
ing accounts of the land.
Investigators say some of the land
is under water part of the time and
none of it is improved.
Many Of the investors are of Polish
descent and were attracted by stories
of a mythical hotel costing $1,0o0,o0O
which was to be erected near the
property. More than 1000 lots have
been sold Investigators said.
Agents Cite These Claims.
Principal features of the advertising
to which Postal inspectors Bush and
Aldrich and other investigators take
exception include the following:
The claim that the property is in
the outskirts of Orlando, Fla, whereas
the closest lot to Orlando is said to
be seven and half miles away.
The claim that Orlando is the Sec
ond largest city in Florida, where it
is the sixth.
The claim that all of the lots are
high and dry, whereas investigation
has revealed that some OF the lots be-
come submerged with several inches
OF water if there is half inch pre-
cipitation in twenty-four hour per-
iod.
The claim that the property is on
the Dixie highway. One $50 foot strip
adjoins the highway, but this place
has not been sold. The remainder is
said to be largely inaccessible.
The promise of statesmen that 500
lots are certain to be worth $4,000
each within a few months.
Drive in Many Cities.
Kenosha was one of more than a
dozen cities which were circularized
by the Florida Land company in it's
garden spot of the world" campaign.
In addition to the big Chicago cam
paign, the company is said to have
carried on compaigns in the following
cities:
Champaign, Springfield, Aurora,
Danville, Elgin, Rock Island, Wauke-
gan, Wheaton, Peoria, Ill.,; Fort Dodge,
Ia. Fort Wayne, Gary, Greencastle
and Valparaiso, Ind, and Beloit, Elk
horn, GAINESVILLE, Kenosha, Lake &C.
neva Madison and Racine, Wis.
Efforts were made this morning to
discover the extent to which Keno
shans invested in the company in
question but there was no way avail
able to establish this. AS yet no spe-
cifc person in Kenosha has been found
who invested in the land in question,
although it is thought probable that
several investors were found here.
q OIL n1