and be insured a fair share of the business moving at stable rates which shall apply alike to all patrons. This will not cure all the evils, but will go a long way in bringing about a better condition of affairs. This would protect the small shipper and the small town.

Second-The further unification of ownership, thereby delivering in time the entire railway ownership of the country into the hands of a few individuals or one syndicate. This condition has already been hurried and helped along by the absence of pooling, and while I am one of those who believe it would not be a calamity if all the railways of all the railways of the United States could be owned by one syndicate provided they could be managed purely and simply as a railway proposition, I have grave doubts that this is practicable, and fear that so much concentrated power would be misusedwhich might result in :

Third-Government ownership, the worst of the three "evils," if such they may be called. Government ownership of our railways would be the beginning of industrial and political chaos. No party in power could have such a strong political machine without in time becoming so intolerant and tyrannical as to breed ultimate revolution.

I stand firmly for the proposition that, with a foundation carefully constructed so that rates must be reasonable, there is nothing to apprehend from pooling. The only objection there is to a combination of any kind is when the combination results in excessive prices or inferior quality. With Federal supervision as to whether rates are reasonable, and with a desire on the part of the transportation companies to do their share of the business in order to maintain their percentage of the traffic in various pools, neither extortion on the one hand nor inferior service on the other need be feared.

In fact, I shrink more from the second and third propositions than I do from the first. I can conceive of one syndicate owning all the railways in the United States and of the people resenting it, and showing their resentment in so many ways that the syndicate might regard the Government as its only salva

tion as a purchaser of the syndicate holdings. After an amalgamation of our railways into one company or one ownership, I can see a possible great popular agitation and demand for the Government ownership and conduct of all the railways of the country, with the aforesaid syndicate as the chief promoter of said agitation. This may be in the dim, distant future after we shall have all gone, but it would not be any stranger than other matters of industrial history have been.

As to pending legislation, I would continue the present Inter-State Commerce Commission in substantially its present form. Let it go on making investigations and findings. If it finds a rate is unreasonable (either too high or too low, everything else being considered), let it order such rates as it deems reasonable, and if the railways do not make them effective in thirty days, then let the entire matter be referred to a Central Court of Transportation of, say, three or five members, to be created especially to consider and expedite all questions of inter-State commerce so far as the transportation of the country is concerned, it being understood that this Central Court shall have power to adjudicate in all such cases except those involving Constitutional questions; and the findings of this Court in inter-State matters to be final.

I would urge severe punishments for railways or steamboat lines engaged in inter-State commerce which by any device paid rebates, commissions, or in any way afforded preferential rates, and the punishment should be just as severe to shippers or commission agents seeking or receiving them. I would permit the railways to divide their earnings or tonnage among themselves, filing all such agreements with the Inter-State Commerce Commission for its information, and I would make these contracts enforceable as between the railways. I would do this as an insurance to the small shippers securing the lowest rate and as a protection to the transportation lines against the vast tonnage and consequent temptation offered by the big shippers which so frequently have been used to secure inside rates. If these

to receive money to be used in betting on races, the winnings to be paid the patron after deducting ten per cent. fee. The fraud is that the company fails to place the money on a race, simply paying the patron two or three alleged weekly dividends in the hope of securing more remittances from him, and, after obtaining as much money as possible, a notice is sent him that the money has been lost on the races. The company pockets the money. It has been the practice of these concerns to continue payment of alleged profits until the money in their hands amounts to hundreds of thousands of dollars before the losing notices are sent out. The fraud order was of no avail, as the parties immediately decamped with the proceeds. Bookmakers and other gamblers in conspiracy with them were always ready to furnish manufactured evidence to the effect that these concerns placed money on the races. It therefore appeared impossible to obtain satisfactory evidence upon which to base an order until the fraud was consummated. The past year other means have been adopted by the Department, and the schemes frustrated in their inception. In order to obtain remittances the concerns make false representations of existing facts. In the advertising statements and tables of the Co-operative Turf Investment Company of New Orleans, purporting to show the past record of the company, transactions for every week showed marvelous success in betting, but the company omitted its report for two weeks, at which time it had sent notice to investors that every thing had been bet and lost. This misled the reader to believe the company always won and never lost. Maxim & Gay, of New York and other cities, represented that they won on races they never bet on, and quoted alleged indorsements by newspapers of standing. These indorsements were found to be nothing more than paid advertisements, and one of these had never been accepted and printed. These facts, coupled with the knowledge that, without an exception, the hundreds of this kind of companies which the Post-Office Department has failed to issued orders against have

resulted in tremendous fraud, warrant the issuance of orders. The Department is not aware of a concern of this kind now operating. In many of the cases the fraud has been enormous. The E. J. Arnold Company closed its doors with liabilities of $3,120,776 and assets of $75,000. J. J. Ryan had practically no assets to meet $1,300,000 liabilities. A few weeks ago a man undertook to operate this scheme at Saratoga, under the name of Hiram Stokes & Son. Upon receipt of his literature by the Department, the mail was withheld from delivery by telegraph to the postmaster, and the party disappeared. The inspector learned that the man obtained over $1,000 in the short space of time necessarily elapsing between the issuance of his circulars and the prompt action of the Department. Hundreds of dollars were held up by the order.

Alleged wheat and cotton funds are operated in a similar way. It is even more difficult to obtain evidence against these before they reap their harvest and disappear.

contracts

Diamond or merchandise find a ready sale, and it is a constant effort for the Department to suppress these. The gist of the contract is that upon payment of one dollar a week by the contract-holder, when his becomes the oldest outstanding contract, it will be redeemed at one and a half or two dollars for every dollar paid in. The company invests no money, but keeps for itself twenty per cent. of all receipts. It simply takes the money paid on two or three subsequent contracts to pay off a former one. It can pay contracts only so long as it can obtain a constantly increasing number of new contracts. As its liabilities increase, its assets decrease. Ultimately the bubble must burst, and the greater the success of the company in obtaining contracts the more widespread will be the disaster. Judge Kohlsaat has characterized this as "a literal demonstration of the old saying, 'The devil take the hindmost."" A large number of orders have recently been issued against such companies operating on the Pacific Coast.

Contracts with the same basic princi

ple for the purchase of homes have been used by companies, and hundreds of laboring men, easily appealed to because of the home features, have been deceived. The remaining few of these are fast being disposed of. The endless chain coupon scheme, whereby one was led to believe that a suit, skirt, or other article could be obtained for ten or fifteen cents, was operated on the same basis. A person would secure a coupon for twenty-five cents and send this to the company with one dollar, receiving four similar coupons. He would reimburse himself with one dollar by selling each coupon for twentyfive cents. When the four coupons sold were returned to the company with one dollar, he would receive the article. The four purchasers of coupons would have a like opportunity, and so on in geometrical progression ad infinitum. Some would get the article, but soon coupons would become so numerous that they could not be sold, or, if sold, would not be returned to the company. Thus a large majority lost everything paid by them. This scheme has taken numerous forms, but all have been condemned.

Swindlers are quick to seize upon a new field for their operations, and, following the development of recent years in mental science, absent treatment, and the like, are resorting to these to defraud the people. The opportunities in this line are vast, for the work is all done at a distance, the credulous are ready to grasp at something new, and an attract ive mystery seems to surround these false personages claiming superhuman powers. In fact, there is little tangible evidence against them. In passing upon these cases, the Department assumes that the treatment honestly administered is efficacious. The fraud is found in false representations as to cures claimed to have been made, untruthful promises of personal attention, as devoting fifteen minutes each day to each patient; when it is found that there are two thousand or more, and other statements of fact, the existence or non-existence of which can be actually ascertained. And from these circumstances, when found, there necessarily follows the further conclusion that, without deciding whether or not a belief or opinion is correct in

these cases such belief or opinion is not honestly entertained. The Department has issued orders in two notable cases, viz.: Helen Wilmans Post, Seabreeze, Florida, and R. E. Dutton, Lincoln, Nebraska. The former has since been convicted upon an indictment found against her for fraudulent use of the mails, and the latter sought relief against the order in the United States District Court, but the order was sustained by Judge Munger.

The boldness of some men and the credulity of others are startling and wonderful. The following show some of the representations made to secure a remittance without intending to send anything in return: That a court rendered a decision authorizing the writer to proceed with the distribution of prizes awarded in a contest, upon which an attachment had been placed by creditors, and the addressee's prize is a

horse, lilly buggy and harness" worth $275, which will be shipped upon receipt of $29.60 for freight charges; that men are desired to work in a company store at $100 per month, and a pass worth $25 will be sent one desiring to take the work, but only upon advancement of $10 as a "guarantee of good faith;" that employment at the World's Fair will be furnished by "The Bureau " for all sorts of clerks, waiters, etc., at salaries of $150 per month, but $5 "good faith" money is required. A person at Binghamton, New York, advertised to loan money on property, to purchase or sell houses, farms, etc., and upon receiving an answer, he said a personal examination of the property was necessary and that therefore he must have money sent him for transportation one way. After remitting, the victim would hear nothing from the company. A concern in Syracuse, New York, advertised to pay $3 per day for men to distribute circulars, tack signs, etc. secure work, $1 must be sent. A list of one thousand names of firms doing extensive advertising was the only return. Farmers all over the country are induced to send butter, cheese, cider, maple sugar, and produce of all kinds to cities by professional crooks, who quote a high price but never intend to remit for the

To

goods. Such cases frequently reach the Department.

Men actually seem to have reached the belief that they can "gather grapes of thorns and figs of thistles." A man in Belfast, Maine, advertised that his "business was peculiar," that he dealt in money of several kinds and had a 'money-making method" that would enable one to acquire good cash by exchanging bank bills for coin. If $2 is remitted he said he would send samples of money representing $50. A Confederate $50 bill was sent. A man in Minneapolis with greater enterprise advertised "$50 for $1—not Confederate." Upon receipt of $1 a book containing directions for removing "kinks" from negroes' hair, how to make "obesity soap," etc., was sent, with the information that it contains $50 worth of information and schemes, so you get what we stated."

The folly and greed of some people is well illustrated by the large number who remitted $3, expecting to get a wellequipped bicycle, in response to an advertisement giving a detailed description of it, and received only a cheap watch-charm in the design of a bicycle. Also by those sending a like amount obtained from selling bluing for a company, expecting to get in return a large and valuable sewing-machine. They received a small hand instrument, labeled the "Soezy Sewing Machine," to be fastened on the edge of a table. Anticipating complaints, the company inclosed with the machine the following circular:

We have your letter, and would advise you to keep cool and not make any rash statements before you are sure as to what you

are saying.

You seem to think we agreed to send you "an up-to-date, high-grade sewing-machine, with all the latest attachments." If you can show us in our advertisement where we

made any such agreement, we will send you such a sewing-machine.

We will go over the advertisement with you, word by word. You will note the first word is "FREE." That means that something is given away. Next we see, AN UPTO-DATE, HIGH-GRADE SEWING-MACHINE, WITH ALL THE LATEST ATTACHMENTS, COSTS FROM $30 TO $40." This is simply a plain statement of fact, telling you what such a sewing-machine would cost you if you went to buy it in a store. We show a

Next we say, 66 IF YOU WISH TO OWN A

SEWING-MACHINE THAT WILL DO EXCELLENT SEWING, SEND US YOUR NAME AND ADDRESS, AND AGREE TO SELL ONLY 30 PACKAGES OF OUR WASHING BLUE AT 10 CENTS A PACKAGE.

You have accepted our proposition; you have sold the blue; you have sent us the amount received from the sale thereof—$3, and fulfilled the terms of our proposition.

You will find, upon reading the advertisement further, that we distinctly agreed, on our part, after you had sold the blue and sent us our money, to simply send you our new AUTOMATIC TENSION SEWING-MACHINE, as a reward for your efforts in introducing our blue among your neighbors and friends.

This is exactly what we have done, as you or any one with a grain of common sense must readily admit.

We hope you will sit down and write us a letter and apologize for insinuating that our object was fraud. You have hurt our feelings very much.

We would advise you not to answer any advertisement again until you are absolutely sure you understand it,

All will admit the propriety of the name given the machine-" Soezy."

If

A Tennessean at Knoxville displayed equal genius when, under the name of the Button Top Bedspring Co., he sent elaborate circular matter with an offer, as was alleged, to introduce his new invention set forth in detail. He said: "We will send one sample spring, charges prepaid, on receipt of $1. you do not like the spring after seeing it, you will be under no obligation to accept the agency, as we do not want an agent that cannot recommend this spring above all others. We will give $2 for each recommendation we receive and use. We send only one sample spring to a firm, and under no circumstances will we send two or more springs at this price." The last statement is doubtless true, for the $1 brought only a small coil of wire.

McCook, Nebraska, has contributed