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THE FARMER AND MECHANIC.
13 Mill. SWINDLERS GET THIRD OF BILUON IN FIVE YEARS Qi;irpris r rested Took That Sum, Federal Estimates Show Figures Not Complete as All Schemers Were Noi Caught. . ,,,,11 swindlers who hav i '.' r rested by t lie Federal aulhori jn: ,' the last live years have f...ui the American public .'.no. Those, arrested during iv.bral fiscal year of 1914 took .i,Mj of thin total, $14,000,000 ."(', .1. those arrested in 1913 and ri'M,. inr than those arrested . y. i - whieh seems to indicate that 'h . iL-ri' un public is becoming less ' ,i m than more sophisticated, says ' ' 'rtw J.. in the New York Times. ' vi'-.-sis of the annual reports of .u" p,.-ii..fi"i'e Department for the rL-il vc.r 1014, recently printed for .Hslribution, vnn analysis oi. preceding annual reports, . 1 . I'iiyll fJ .j.l.-ri'i-; the ' . . ja4 AAA AAA .-A. he lotal ot s.iol.uyu.uuu, greai as is but a part of the stupendous mentioned, in con tribute which Americans each year to the mail should be noted, however, it it ' K irfj! tribute which goes into dishon ...t r.wketH via tne man route eacn ,v.-.-1ve months. For the $351,000, ,.() i- thrt estimate of the Federal au-ii.uitfi.-.s ' the haul only of those pcr- j.,- - arretted. m no m-:isis all the mail swindlers ,,!' tlx 1'nited .States are arrested; tr.iu.' nbra do the work of stop ,,in- their operations in some instan ... in others it is impossible for the i'...ti.fi'ire Inspectors to obtain the ...idem whieh wuld justify crimi ,,! ro ut o-tion; in sttii others tne ae- i;,i,i,.s .f ihe .swindlers never come to ii,.- t i'MUioii of the authorities at all. Tiv ii is obvious that the loot of !hn - arrested is but a part. no man - iv how small or great a part ,1 the total sum of money filched ft . . A . i -tr m mail sua rpers jmrn nit; f .; :i ll posketbook. J'ivi-Year Kcfonl. . following is the record of .Mitnutnl to have geen . i . mail swindlers actually ,i' $68,000,000 Ml , $ OS, 000, 00 the o.i: r,4,000,000 .-: .-2,000,000 p. 11 77,000,000 j'M.i 100,000,000 $ ::ri,ooo,ooo i:d number of persons arrested the years tabulated was 2,861. money obtained had been di- cually between them each have had a. dishonest gain of i-..'sl, proof of the lucrative na iiip of swindles which are carried on ?.' of be mails. There 1 were airests in VJ1 4 than in any oi other e:irs under cnsideration, r'-eord of arrests and convictions .i- follows: Arrest? 7 62 310 i 1 f i : 1 . If t I L i.)-.! 1 . I. I-' ) ! 1 2 i 1 m 'I'll. im.iI: fivi- 'onviotions. 370 ::04 263 184 Mot stated m r,20 livi-ion of winnings from the was however, naturally not some of the promoters of the Ui borate schemes during the ars are tated by the Federal soithorities to have cleared millions, .bi'e others got hundreds of thou smuhs. In other cases the l'ostoffice !u.l--ctors got on the trail of the v.-Ut(1ler.-j before they had a chance ike.-o any large number of victims. Tb. r'ipf of the fradulent mail b -ss i xi this country may be j i '!.: m I to some extent from the sim :!' siateiueni that 34,000 complaints ''niing schemes to defraud were ')! to the Postoffke Popartment ''""i.-r the lust tis al year, in addition ih. routine inspections of the Post- ' IToximately Io0 different kinds .vimll-.v are included in the h mes whereby the mail operators v- u'athi'red in 'the coin of the in- ! -it -iri. 1910. Schemes for stock "'Ii .-; utid for treating diseases by ".'.i ir' the two swindles which have. !,"t'l unue money than any other '' K. In tho rejort of the Solicitor '" ib I'ostoffb-e. Department it is .-t-. t-d that in 1014 of the frauds sup-r- - through the issuance of fraud " 'lor -whieh bar the mails to the -!' tM.-r specific therein the most liial le were those operated for the '' 'iiii. -nt of disease. Jn 1913. on the "'ti' r hand, it was stated that "the ' '. -lling proposition seems to ap !"'! i, ihe jiblic more than any oth fraud scheme unearthed." Tlie Mnlicals luds. me medical Irauds the report 101 ays: some man who had graduated as a doctor, but was without much experi ence or practice. The business was conducted in his name, and ht was featured in the literature as a man of singular ability and great scientific attainment in the medical nrofpssinn who had spent years in the study of the. particular ailments which ad vertised to treat and who had made, wonderful discoveries of rpmpdip which would cure the diseases repre sented by a number of svmntoms list ed in the advertisments. It was represented that such doc tor and his alleged corps of assistants, would give personal attention to en eh case, and that they would prescribe such remedies as they should find by their superior facilities and experience were needed in the treatmut of any of tne uiseases tney advertised to cure. Even in those instances where a doc- to or doctors were connected with tho business this was solely for the pur pose of lending color to their fraud ulent representations, and the diag nosing and prescribing were nearly always made by mere clerks. Stock-Selling Swindlers. Of the stock-selling swindlers those who have netted the largest amount are those who have dealt with mining and fftl properties, although bitr sums have also been eoaxed out of Dockets of the guileless by the golden promises of fortunes to be made from buying stock in land companies and even in industrial companies. one of tin' wti.M features of the stoeksclling seheme.'. is that it is large ly those who can least afford to lose who buy the worthless securities. In the gray old Federal Building of New York there have, within the last three years, been told stories on the witness stand by dupes which might well leave a perpetual blush of shame on the face of any man guilty of such contempti ble swindles. In one trial, for instance a poor little music teacher told how, after saving for eigh yet.js, she had man aged to accumulate $400. She had then read one of the prospectuses of the swindlers who were sitting at the counsel table a few feet from her wnen sne was giving her evidence. This prospectus had told her that her $400 would make her rich for life if she would only forward it at once for stock in the astounding gold mine which the swindlers owned. She wrote to the company, stating her po sition and how much of self-sacrifice the $400 meant to her, and received back "a lovely letter" from the presi dent, telling her how interested he was in her case, and how certain he was that she wrould soon be able to give up teaching music if she would only forward the $400 right away. And the little teacher sent the money. and the mine was worthless, and she half-fainted as she finished her story in the witness chair. J)c Iaixe Book Fake. One of the few mail swindles which touched the wealthy classes exclusive ly was the so-called de luxe book swindle, by which volumes worth $10 or $20 were sold to rich and ignorant book collectors for prices running up to many hundreds. Among other swindles carried on through the mails are inducing betting on "fake" horse races and athletic. contests, selling worthless goods through misrepresentations, obtaining commissions on fraudulent orders, selling divining rods for locating min erals, guaranteeing stocks and bonds, using forged bills of lading in cotton deals, brokerage frauds, obtaining mo ney by impersonating other persons, obtaining goods under false pretenses, selling State rights and establishing 'fictitious agencies, selling unfair gam bling devices, using "no-fund" checks, in stopping the operations Indeed, the departmental reports state that in some cases the swindlers have con tinued the operation of their business during arrest, trial, conviction, and imprisonment whereas fraud orders bar the mails to the operaotxs of the scheme. Thus the depatment is now using both fraud orders and criminal prosecutions. The Fraud Older Question. The report of the Postmaster Gen eral for 1914. in discussing the fraud order question, says: This administration has insisted upoi. vigorous enforcement of the statutes providing for the issuance of fraud orders. Under the urior uostal administration these salutary laws had fallen into disuse. In consequence a new lease of life had been taken on by numerous concerns and indi viduals who used the mails for the conduct of schemes to defraud. Efforts to suppress swindles of this character by criminal prosecution only had been ineffective. The delays in cident to" such prosecutions, and the fact that, when successful, the penal ty imposed vras frequently merely a fine which the promoters could well afford to pay, militated materially against their effectiveness. The expe rience of a year in the renewed en forcement of these statutes has dem onstrated clearly that the discontinu ance of action under them was follow ed by a large increase in the number of concerps and individuals taiking advantage of the postal establishment to defraud the public. The tax law en forcement also encouraged tne widen ing of the scone of operations of some wrho had theretofore been de terred from extending their business bv fear of on abrupt termination of the schemes by the issuance of fraud orders with a consequent loss of the capital invested. Hence the department has had to deal with enterprises of unusua growth, and fraud orders have been issued against a large number of con cerns and individuals. Every oppor tunity has been extended to those ae eused to make full and complete an swer to the charges, and the evidence in each case has had careful and im partial- consideration. The action ot the department m this connection has been questioned by court proceedings in but one case In this an injunction was asKed in the United States District Court Chicago to restrain the postmaster from carrying out the provisions of tht fraud order. A temporary restraining order was granted, but upon argument the temporary injunction was denied and the action of the depatment sus tained. From this decision an ppeal was taken, but was later dismissed upon the motion of the appellants. The evidence in one of the cases in which a fraud order was issued show eded that the amount of money ob tained by the company from the pub lic in one year was $3r0,000. In manv instances nothing whatever of value was returned for the money. none was tne return mat wmcn purchaser was induced to believe was to receive. ARE THE FRIERS GETTING El W The Consumer Pass Di-aii But Who Gets Most of the Dollar? Ohap-l Hill. Feb. Lu. - U 'arolina farmer receiving a righto. u of tlie consumers" dollar? 'on upon coiicn i:i bused were produced bv the Xorth Club in its semi-monthly to make Positive that th l ha; in ot e share elusions, stances. Carolina meeting iarmer is not recfivintr an ihIhuim proportion of the wealth he create-. The tabulation of figures and th- dis cussion OI tne Slinlri't v-r . m -i.?. Kir Marion B. Fowler of Durham eountv, a fctudent in the Fniveritv. The subject concerned itself wit'.i the investigation of the tt,t ot liv ing ot today, and the relation h ume 10 i no iarmer. rne ot tiie t nited States Department of Commerce were given to prove that the cost of living is steadily increas ing. According to these figures, 257 articles being taken as a basis, of com putation, the average price of food stuffs for the ten years from IS 90 to 1899 is forty-five per cent higher now than then. Then, the question centered around the inquiry whether the farmer wa getting the benefit of thee higher prices. The crop wealth of-the Xorth Carolina farmers more than equals the resources of all the banks. Statw and national, accumulated in the last 250 years. Yet tlie per capita wealth of the country folks in the State is only $322 as compared with $S29 in Oklahoma. Haw Versus Fini-heo!. HE CilLMtDEB $4,000,000. schemes were insidious, vie and highly detrimental to tne "iblio welfare, while the methods I' l' 'o d were the most unconscionable 'ith which the department had to "'1 In view of certain decisions of ih" eourts they were also the most dif- ' 'di with which successfully to cope U the hearings in many of these asf-s the testimony of the proprietors i thuso enterprises, under cross-ex 1 1,1 in;! lion by counsel for the govern !i; d, showed that they had little ed 'anon of Jiny kind, and they made o.vohitely no claim to any knowledge rnedWine. Invariably they were I'lvjy shrewd and unscrupolous ad- TtUers -"'ifi-Mlly speaking they fnployed matrimonial schemes., selling canceled postage stamps and Mexican money, obtaining expense money on promise to sell stocks, collecting fees for imag inary positions, selling right to a pa tent many times in the. same State, se curing advance payments on goods not delivered, obtaining payment from relatives of deceased persons for goods supposed to have been ordered before death, obtaining money from alleged heirs to estates, obtaining money to assist in securing fictious in heritances sales of sham recipes, trading in green rrnnitw -.1-kf fjiiiinrr onseT-mHof!.; for noil- existent charitable institutions, run ning sham employment bureaus, sell ing interests in non-existent moving- picture theatres, selling diplomas lor whirli no studv hCrenuired. failing to distribute advertising matter as called for by contract, and blackmail. In 1914 more fraud orders were is sued than has been the case lor some time. In 1910 the Postoffice authori ties began to issue fewrer fraud or ders than bad been customary in the belief that it would be better to prose cute criminally those operating fraud ulent schemes. "Whereas in 1909 there were 2f0 fraud orders, in 1910 there were but 131, and in 1911 only 77. There was a still further decrease in 1912, the number being nineteen, while in 1913 there were only three fraud orders issued. The number in 1914 was forty-five. It has been found that criminal prosecution is not always successful Man Who Carried. Fortune Aeros-y Continent in Suitcase, lies in Frisco. San Francisco Chronicle. With the death at the Alameda County Infirmary Wednesday night of William Frederick Marshall, 65 years of age, said to be a, relative of John Marshall, the discoverer of gold m California, there was brought to a pintift thp life of a man who once car ried Si4.a00.000 . in bonus across tlie continent. MMrsluill. who for the past ten vcara v.j rAsiiled with Ml'S. Mai'V Bowers, 146S Eighth street, was eom misioned by T. G. Crothers and K. D. Mitchell, the executors of tke James f. Fair estate in California, in 1897, to bring the $4.u00,000 in bonds from New York to San Francisco. Wflls, Fargo &. Company wanted $4r812 for the same service, and the executors decided to saye this amount. Accordingly on October Z of that year Marshall left New York with the bonds in three suitcases, heavily armed, in a private drawing room. He delivered the bonds to the executors in San Francisco without mishap on October 10. En route tne train was held up and the passengers robbed of personal belonging in Utah by a gang of highwaymen, who fortunately overloked the three suitcases. Examples were produced to show the widel$- varying diiierem tween the juice of the raw pr-..i and the manufactured article or ihr arucle when served to the consumer. A bushel of potatoes served on the of j tables of a New York restaurant co.-s the consumer as much as the f:;?nsei- of eastern North Carolina receiver, for 150 bushels. A cow- bought of the farmer for $50, when served on the tables of hotels and restaurants costs tlie consumer around $2,000. The smokers of Chapel Hill pay live cents tor an ounce bag of smoking to bacco. The consumer buys the tobacco at the rate of eighty cents a pound. while the tobacco in the raw state brings the farmer of Durham and Orange counties on an average of ten cents a pound. The tobacco ware houses of Durham, Mebane and Winston-Salem bought tobacco during the month of December, 1914. for that av erage price. A box of chewing tobacco weighs ten pounds, net weight, and contains forty-four plugs, which, at ten cents a plug amounts to $1.40. The farmer's share of that amount is $1; tlie mercahnt gets 19 cents out of the consumer's dollar, and the farmer 2? cents- The question is raised by the North Carolina Club as to who gets the. 52 cents. An analysis of the cotton situation reveals a somewhat similar result. Cotton is selling for 8 cents a pound. A pound of cotton will produce sis pairs of ladies' stockings of the cheap- Tn t he-he 'Victim' and rSFS THIEF AS A CI7UB. ' frasvis One Hob Dor hy I oet l'u nimel s . com pi I cc. Eos Angeles Times. Two masked men reckoned without their host early yesterday mornins when they entered the room of N. II. Hobbs, 570 South San Pedro street, and attempted to hold him up at the point of a revolver. Mr. Hobbs was awakened by the sound of the men entering his room. As he jumped from the bed one of tiiem e-vabbed him and told him if he moved he was a dead man. At this time things commenced to happen. Mr. Hobbs, who moves pianos as a means of earning his "liv ing, took the first intruder firmly by both feet and used him as a club to subdue the other man. Neighbors, awakened by the cries for mercv uttered by the near-bandits, sent in "a call for the 'police. Mr. Hobbs, however, thought the men had been sufficiently punished and allow ed them to go. er grade, whieh sell for f if ten cents a pair. Thus one pound of cotton sold to the consumer in' the form of hose will cost ninety cents. An investigation shows that a farm er gets one ton of cotton seed cake or cotton seed meal in exchange for his ton of cotton seed. A letter from a large fertilizer manufacturing com pany says: "Sixty-six and, two-thirds bushels of cotton seed are equal to a a ton. One bushel of cotton seed will yield practically two-thirds of a gallon of oil." One ton of seed yields 4 4 4-j gallons of oil. Cotton oil in the form of cottolene sells at the local store for twelve and a half cents a pound, a gallont .. bucket of it weighing ten pounds. This means a price of $1.2 a. gallon, or $o5"4 that tlie consumer has to pay for a ton of cotton seen and beef tallow converted into cott lene. The farmer's share disappears, receiving no money value; only the ad vantage of a better fertilizer from the cotton seed which he sold. The North Carolina Club attached a large part of the blame of the farmer's failure to realize his share of the con sumer's dollar at his own door. Cot ton and tobacco raised by tenants must be sold at the demand of time credit accounts. The rush to the mar ket sends the price of the product downward in times when tlie farmer i-j forced to sell.i Here's the remedy proposed by the club: Crow less cotton, more cotton raised by farm owners, more clean high grade cotton, increase of operat ing capital in farm regions, less de pendence on supply merchants, more co-operative buving and selling. the The clerk of in Mill Valiey, i following case: "George v asnir.g re. -old t ivcf rv.Jy r's court filed ?he e. li-cn versus Christopher Columbus loufs action to recover rent." m Many of the Arabian peasav: lation of Palestine have r emigrated to North and South io3 . -la nd- popu--eently A rn er- 1 ' i ;-n - . t If V 3 I Kt 1 A I ! t 7 t J i ? . - 'V . : ! 1 1 ' V 1 : ' t - t I-' ! -- I-( ir.