Every well-equipped fraudulent concern acquires the names and addresses of susceptible persons. Painstaking revisions of the lists made up of these names and addresses form an important part of the labor of the principals or employes. The lists grow as each advertisement brings inquiries from persons who, either through curiosity or desire to invest, write for particulars. Affiliated swindles operated in succession by a gang of "fakers" use the same list of "suckers."
In affiliated swindles if the "sucker" does not succumb and remit his money on the inducements offered by one concern, his name is transferred to the lists of another, and he is then bombarded with different literature. Thus a man must pass through the ordeal of having dozens of tempting offers made him before he demonstrates that he is not a "sucker," or has not got the money. His name is then stricken from the list.
There are so many "get-rich-quick" operators at present that competition between them has become strenuous. They are now infesting the entire country with local solicitors, who frequent saloons, hotels, and even residence districts, where victims are found in foreigners, ignorant servant girls and inexperienced widows.
These solicitors get 50 per cent commission on all sales of stock. This fact in itself is evidence that the propositions are rank swindles. When the swindling operator finds things getting too hot he disappears from his office and bobs up in some new place with a new proposition.
Pecksniffian Tears Delude.
A few attempts have been made to prosecute the swindlers, but for the most part the local officials have failed. In but few instances have the victims been able to give anything like intelligent statements of the representations made to them. Where the right sort of agents have been used the people who have lost their money have not awakened to the fraud passed upon them. A few Pecksniffian tears have deluded them into the belief that the swindlers as well as themselves were victims of some third party who is in another state and out of reach.
Where cases have been brought to trial it has been a difficult matter for juries to understand how the persons aggrieved could have been caught with the sort of chaff thrown to them, and there has been little disposition to show charity for the victims. Then, too, the men hauled before the courts have always made it appear they were in the same boat with the complaining witness, and that the culprit was many, many miles away. So, usually, they have escaped.
Difficult to Convict.
Even in the most flagrant cases and where every advantage was taken of the ignorance, inexperience or trustfulness of the person deluded it has been difficult to bring the offense under the state statutes. It requires more than ordinary misrepresentation and lying to make out a criminal case, and under the rules of evidence which prevail it is almost impossible to overtake a cheat who has not put his misrepresentation into writing or made them in the presence of third parties.
Where the swindlers have used the mails, however, it is not such a difficult matter to convict. The United States is scrupulously jealous of its postal service, and under its statutes every fellow who undertakes to utilize it for improper purposes can be brought to book. He can not hide behind some one in another state, for the federal jurisdiction is general and the other man can be brought in. Nor can he plead that the business was legally licensed in another state, or that its incorporation was regular. If it was a cheat and the mails were used in furtherance of its design, no corporate cloak thrown around it by any of the commonwealths can save the promoters.