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and be insured a fair share of the busi- tion as a purchaser of the syndicate ness moving at stable rates which shall holdings. After an amalgamation of apply alike to all patrons. This will our railways into one company or one not cure all the evils, but will go a long ownership, I can see a possible great way in bringing about a better condition popular agitation and demand for the of affairs. This would protect the small Government ownership and conduct of shipper and the small town.

all the railways of the country, with the Second—The further unification of aforesaid syndicate as the chief proownership, thereby delivering in time moter of said agitation.

moter of said agitation. This may be the entire railway ownership of the coun- in the dim, distant future after we shall try into the hands of a few individuals have all gone, but it would not be any or one syndicate. This condition has stranger than other matters of industrial already been hurried and helped along history have been. by the absence of pooling, and while I As to pending legislation, I would am one of those who believe it would continue the present Inter-State Comnot be a calamity if all the railways of merce Commission in substantially its the United States could be owned by present form. Let it go on making inone syndicate provided they could be vestigations and findings. If it finds managed purely and simply as a railway a rate is unreasonable (either too high proposition, I have grave doubts that or too low, everything else being conthis is practicable, and fear that so much sidered), let it order such rates as it concentrated power would be misused- deems reasonable, and if the railways which might result in:

do not make them effective in thirty Third-Government ownership, the days, then let the entire matter be worst of the three “evils,” if such they referred to a Central Court of Transmay be called. Government ownership portation of, say, three or five members, of our railways would be the beginning to be created especially to consider and of industrial and political chaos. No expedite all questions of inter-State comparty in power could have such a

merce so far as the transportation of the strong political machine without in time country is concerned, it being underbecoming so intolerant and tyrannical stood that this Central Court shall have as to breed ultimate revolution.

power to adjudicate in all such cases I stand firmly for the proposition except those involving Constitutional that, with a foundation carefully con- questions; and the findings of this structed so that rates must be reason- Court in inter-State matters to be final. able, there is nothing to apprehend from I would urge severe punishments for pooling. The only objection there is railways or steamboat lines engaged in to a combination of any kind is when inter-State commerce which by any dethe combination results in excessive vice paid rebates, commissions, or in any prices or inferior quality. With Federal way afforded preferential rates, and the supervision as to whether rates are rea- punishment should be just as severe to sonable, and with a desire on the part shippers or commission agents seeking of the transportation companies to do or receiving them. I would permit the their share of the business in order to railways to divide their earnings or maintain their percentage of the traffic tonnage among themselves, filing all in various pools, neither extortion on such agreements with the Inter-State the one hand nor inferior service on the Commerce Commission for its informaother need be feared.

tion, and I would make these contracts In fact, I shrink more from the second enforceable as between the railways. I and third propositions than I do from would do this as an insurance to the the first. I can conceive of one syndi- small shippers securing the lowest rate cate owning all the railways in the and as a protection to the transportation United States and of the people resent- lines against the vast tonnage and coning it, and showing their resentment in sequent temptation offered by the big so many ways that the syndicate might shippers which so frequently have been regard the Government as its only salva- used to secure inside rates. If these


contracts were illegal or against public the law stand as it now is, making the policy or unreasonably in restraint of punishment for the carrier a fine only. trade, then let them be reviewed by the This does not seem to be exactly fair to same Court of Commerce, and subject me, but a railway company seldom gives only to Federal supervision, thereby a rebate where it is not solicited, and if relieving the States of this prerogative the pressure on it were relieved few and establishing one central regulation, rebates would be granted. The traffic the Federal power. Frequently I have officer of a railway company is only its

the State Commissioners take agent, and he does not profit in any action which nullified the orders of the degree by the rebate or preferential rate Inter-State Commission. It is the well- bestowed. The chief beneficiary is the known policy of certain States, through shipper who receives it, and if the puntheir Railway Commissioners, to make ishment to him could be in proportion the rates within the borders of their own to the benefits derived from the transacStates so that the residents of those tion, it would undoubtedly stop the transStates may have a preference.

action altogether. I would make it impossible for others The Inter-State Commerce Law as it than those directly interested as shippers now stands, when considered in connecor commercial bodies to bring suits for tion with the Sherman Act, is absurdly action under the Inter-State Commerce contradictory. It provides at one and Act.

the same time for unrestricted competiI would favor an agitation and shaping tion and an equality of rates; for uniof a public opinion that would not toler- formity in railway charges without agreeate such a thing as a preferential rate, ments between the roads; for no disand would make it equally disagreeable criminations between localities without to grant or receive it. The President's the right of the railways to confer as to Message on this subject meets the views what discriminations are. I am not of all good citizens whether engaged in sure that under the Sherman Law, as it railroading or shipping.

stands, a union depot, with a joint ticketThere are well-informed men who say agent selling tickets to the same point that it would be beneficial to reimpose at the same rate over two different roads, the punishment by imprisonment of any is not illegal. Certainly this condition shipper found taking 'a rebate, letting should be changed.


Swindling Through the Post-Office '


By Edwin W. Lawrence

Assistant Attorney, Post-Office Department
Y far the greater part of the time mona contract companies, embody both

of the officials who administer the fraud and lottery features. Hundreds of

Postal Frauds and Lottery Law is endless chain and other schemes have occupied with cases arising under the been suppressed without the issuance of portion condemning fraudulent schemes. “fraud orders.” When a business is This section of the law has stood since not inherently bad and may be con1872. From June, 1903, to September, ducted legitimately, opportunity is given 1904, 327 fraud orders were issued. Of the parties to abandon their fraudulent these, 31 were against foreign lotteries methods or representations, if circumattempting to operate in this country, stances warrant such action. 4 against domestic lotteries, 1 against As shown by an outline of some of a pool-selling establishment, and 291 the schemes, the protection of fraud against fraudulent schemes. Some of orders extends to all classes of peoplethese latter, as bond investment and dia- rich and poor, educated and uneducated,

farmer and merchant, financier, manuElsewhere in this number of The Outlook will facturer, and laborer. be found an editorial on Postal Fraud Laws.-THE EDITORS.

Turf investment companies advertise to receive money to be used in betting resulted in tremendous fraud, warrant on races, the winnings to be paid the the issuance of orders. The Departpatron after deducting ten per cent. fee. ment is not aware of a concern of this The fraud is that the company fails to kind now operating. In many of the place the money on a race, simply pay- cases the fraud has been enormous. ing the patron two or three alleged The E. J. Arnold Company closed its weekly dividends in the hope of secur- doors with liabilities of $3,120,776 and ing more remittances from him, and, assets of $75,000. J. J. Ryan had pracafter obtaining as much money as possi- tically no assets to meet $1,300,000 ble, a notice is sent him that the money liabilities. A few weeks ago a man has been lost on the races. The com- undertook to operate this scheme at pany pockets the money. It has been Saratoga, under the name of Hiram the practice of these concerns to con- Stokes & Son. Upon receipt of his tinue payment of alleged profits until literature by the Department, the mail the money in their hands amounts to was withheld from delivery by telegraph hundreds of thousands of dollars before to the postmaster, and the party disap the losing notices are sent out. The peared. The inspector learned that the fraud order was of no avail, as the man obtained over $1,000 in the short parties immediately decamped with the space of time necessarily elapsing beproceeds. Bookmakers and other gam- tween the issuance of his circulars and blers in conspiracy with them were the prompt action of the Department. always ready to furnish manufactured Hundreds of dollars were held up by the evidence to the effect that these concerns order. placed money on the races. It there- Alleged wheat and cotton funds are fore appeared impossible to obtain satis- operated in a similar way. It is even factory evidence upon which to base an more difficult to obtain evidence against order until the fraud was consummated. these before they reap their harvest and The past year other means have been disappear. adopted by the Department, and the Diamond or merchandise contracts schemes frustrated in their inception. find a ready sale, and it is a constant In order to obtain remittances the con- effort for the Department to suppress

make false representations of these. The gist of the contract is that existing facts. In the advertising state- upon payment of one dollar a week by ments and tables of the Co-operative the contract-holder, when his becomes Turf Investment Company of New the oldest outstanding contract, it will Orleans, purporting to show the past be redeemed at one and a half or two record of the company, transactions for dollars for every dollar paid in. The every week showed marvelous success company invests no money, but keeps for in betting, but the company omitted its itself twenty per cent. of all receipts. It report for two weeks, at which time it simply takes the money paid on two or had sent notice to investors that every- three subsequent contracts to pay off a thing had been bet and lost. This mis- former one. It can pay contracts only led the reader to believe the company so long as it can obtain a constantly always won and never lost. Maxim & increasing number of new contracts. As Gay, of New York and other cities, repre- its liabilities increase, its assets decrease. sented that they won on races they never Ultimately the bubblc must burst, and bet on, and quoted alleged indorsements the greater the success of the company by newspapers of standing. These in- in obtaining contracts the more widedorsements were found to be nothing spread will be the disaster. Judge Kohlmore than paid advertisements, and one saat has characterized this as " a literal of these had never been accepted and demonstration of the old saying, “The printed. These facts, coupled with the devil take the hindmost.' A large knowledge that, without an exception, number of orders have recently been the hundreds of this kind of companies issued against such companies operating which the Post-Office Department has on the Pacific Coast. failed to issued orders against have Contracts with the same basic princi



with one

ple for the purchase of homes have been these cases such belief or opinion is used by companies, and hundreds of not honestly entertained." The Departlaboring men, easily appealed to because ment has issued orders in two notable of the home features, have been deceived. cases, viz.: Helen Wilmans Post, SeaThe remaining few of these are fast breeze, Florida, and R. E. Dutton, Linbeing disposed of. The endless chain coln, Nebraska. The former has since coupon scheme, whereby one was led to been convicted upon indictment believe that a suit, skirt, or other article found against her for fraudulent use of could be obtained for ten or fifteen cents, the mails, and the latter sought relief was operated on the same basis. A person against the order in the United States would secure a coupon for twenty-five District Court, but the order was suscents and send this to the company with tained by Judge Munger. one dollar, receiving four similar coupons. The boldness of some men and the He would reimburse himself with one credulity of others are startling and dollar by selling each coupon for twenty- wonderful. The following show some five cents. When the four coupons sold of the representations made to secure a were returned to the company

remittance without intending to send dollar, he would receive the article. The anything in return: That a court renfour purchasers of coupons would have dered a decision authorizing the writer a like opportunity, and so on in geomet- to proceed with the distribution of rical progression ad infinitum. Some prizes awarded in a contest, upon which would get the article, but soon coupons an attachment had been placed by crediwould become so numerous that they tors, and the addressee's prize is a could not be sold, or, if sold, would not horse, lilly buggy and harness ” worth be returned to the company. Thus a

$275, which will be shipped upon receipt large majority lost everything paid by of $29.60 for freight charges; that them. This scheme has taken numerous men are desired to work in a company forms, but all have been condemned. store at $100 per month, and a pass

Swindlers are quick to seize upon a worth $25 will be sent one desiring to new field for their operations, and, fol- take the work, but only upon advancelowing the development of recent years ment of $10 as a “guarantee of good in mental science, absent treatment, and faith ;" that employment at the World's the like, are resorting to these to defraud Fair will be furnished by“ The Bureau the people. The opportunities in this for all sorts of clerks, waiters, etc., at line are vast, for the work is all done at salaries of $150 per month, but $5 a distance, the credulous are ready to

“good faith money is required. A grasp at something new, and an attract- person at Binghamton, New York, adverive mystery seems to surround these tised to loan money on property, to purfalse personages claiming superhuman chase or sell houses, farms, etc., and powers. In fact, there is little tangible upon receiving an answer, he said a perevidence against them. In passing upon

sonal examination of the property was these cases, the Department assumes necessary and that therefore he must that the treatment honestly administered have money sent him for transportation is efficacious. The fraud is found in one way. After remitting, the victim false representations as to cures claimed would hear nothing from the company. to have been made, untruthful promises A concern in Syracuse, New York, of personal attention, as devoting fifteen advertised to pay $3 per day for men to minutes each day to each patient; when distribute circulars, tack signs, etc. To it is found that there are two thousand secure work, $1 must be sent. A list of or more, and other statements of fact, the one thousand names of firms doing exexistence or non-existence of which can tensive advertising was the only return. be actually ascertained. And from Farmers all over the country are induced these circumstances, when found, there to send butter, cheese, cider, maple necessarily follows the further conclu- sugar, and produce of all kinds to cities sion that, without deciding whether or by professional crooks, who quote a high not a belief or opinion is correct in price but never intend to remit for the





goods. Such cases frequently reach the picture in the advertisement of the kind of Department.

a sewing-machine that would cost from $30

to $40. Men actually seem to have reached

Then we say,

“ DON'T THROW the belief that they can “gather grapes

This, you will admit, is of thorns and figs of thistles.”

A man

good advice. It simply means that you in Belfast, Maine, advertised that his should not waste money on high-priced

sewing-machines. “business was peculiar," that he dealt

Now, having given you this good advice, in money of several kinds and had a

we go on and say—“BUT TAKE ADVANTAGE “money-making method " that would OF OUR GENEROUS PROPOSITION;" and now enable one to acquire good cash by you are ready to see what the generous prop

osition is. exchanging bank bills for coin. If $2

$ Next we say, is remitted he said he would send samples of money representing $50. A Con- LENT SEWING, SEND US YOUR NAME AND federate $50 bill was sent. A man in ADDRESS, AND AGREE TO SELL ONLY 30

PACKAGES OF OUR WASHING BLUE AT 10 Minneapolis with greater enterprise ad

CENTS A PACKAGE." vertised “ $50 for $1—not Confederate.” You have accepted our proposition; you Upon receipt of $1 a book containing have sold the blue; you have sent us the directions for removing “kinks from amount received from the sale thereof—$3,

and fulfilled the terms of our proposition. negroes' hair, how to make "obesity

You will find, upon reading the advertise soap,” etc., was sent, with the informa

ment further, that we distinctly agreed, on our tion that it “contains $50 worth of in- part, after you had sold the blue and sent us formation and schemes, so you get what

our money, to simply send you our new


a reward for your efforts in introducing our The folly and greed of some people is blue among your neighbors and friends. well illustrated by the large number who This is exactly what we have done, as you remitted $3, expecting to get a well

or any one with a grain of common sense

must readily admit. equipped bicycle, in response to an

We hope you will sit down and write us a advertisement giving a detailed descrip- letter and apologize for insinuating that our tion of it, and received only a cheap object was fraud. You have hurt our feelwatch-charm in the design of a bicycle.ings very much.

We would advise you not to answer any Also by those sending a like amount advertisement again until you are absolutely obtained from selling bluing for a com- sure you understand it, pany, expecting to get in return a large and valuable sewing-machine. They re

All will admit the propriety of the ceived a small hand instrument, labeled

name given the machine" Soezy.": the “Soezy Sewing Machine,” to be fas

A Tennessean at Knoxville displayed tened on the edge of a table. Anticipat- equal genius when, under the name of ing complaints, the company inclosed the Button Top Bedspring Co., he sent with the machine the following circular: elaborate circular matter with an offer,

as was alleged, to introduce his new We have your letter, and would advise you invention set forth in detail. He said: to keep cool and not make any rash state- “We will send one sample spring, ments before you are sure as to what you charges prepaid, on receipt of $1. If are saying.

You seem to think we agreed to send you you do not like the spring after seeing an up-to-date, high-grade sewing-machine, it, you will be under no obligation to with all the latest attachments.” If you can

accept the agency, as we do not want an show us in our advertisement where we made any such agreement, we will send you agent that cannot recommend this spring such a sewing-machine.

above all others. We will give $2 for We will go over the advertisement with each recommendation we receive and you, word by word. You will note the first

We send only one sample spring word is “

That means that something is given away. Next we see,

to à firm, and under no circumstances TO-DATE, HIGH-GRADE SEWING-MACHINE,

will we send two or more springs at this ALL THE LATEST ATTACHMENTS, price." The last statement is doubtless COSTS FROM $30 TO $40." This is simply a

true, for the $1 brought only a small coil plain statement of fact, telling you what such a sewing-machine would cost you if of wire. you went to buy it in a store. We show a McCook, Nebraska, has contributed




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