The syndicate wasn't los
ing any time. While the
farmer’s wife was eating
sherbets and lady's fingers,
the man, his patriarchal
white beard trimmed and
brushed as it had not been
for years on the home
place, was being taken deep
ly into the innermost con
fidence of the secretary.
This man knew that the
farmer would never have
millionaires would bet any sum. After much
persuasion I agreed to go to Omaha to see a
match—I was due for a vacation anyway—and
Stowe said I couldn’t lose. A certain A. B.
Shores was to wrestle the millionaires’ man,
who had agreed, Stowe said, to let himself be
thrown. I took with me a check for $10,000 to
make a showing. The millionaires I met were
this Gordon and two others. I told Stowe, in
Omaha, that I was ‘next’ and wouldn’t bet my
money, but would bet their money for them
as I'd been asked to do. I deposited my check
in a bank. During the betting the leader,
ME MILLION DOLLARS squeezed fromDusmess
men of unquestionable standing by means of
Evi Iiya fraud methods, the strings of which were pulled
from every big city of the Uuited States; probab
ly several millions more taken from contributors
whose timidity prevented them from coming forth
to testify at the Council Bluffs, la., trial.
That, as far as is known, is the fruits of one of the most
thoroughly equipped swindling organizations which the Uni
ted States ever knew. The swindlers, captured recently west
of the Mississippi river, were brought to book and the whole
story came out at the jury investigation which returned in
dictments and in the developments which followed subse
quently.
Established in as handsome a suite of offices as J.Pierpont
PICTURE
/ OF fl FAKE
f WRESTLING
/ P1RTCH.
\SW!NQL£R FHD
0 SWINDLED
\ShnmtjQ, hrhds
Morgan himself
might choose, these
magnates in fraud
lured their victims
towards the glitter
of "easy money”
propositions and
then plucked their
feathers in such
adept manner that
often the "Mikes”
themselves could not
discern the swindle
and as a consequence
they became victims
again.
The heads of the
swindle called them
selves “millionaires”
with money to in
vest and thus in
many instances
coupled their money
with that of the in
nocent “sheep” and
the latter was fleeced
in due time.
Every game known
to the underworld
was theirs and new _
ones were invented
every month. They had a perfect book
keeping system; they employed agents
... t. ui me uuuiury, uicsc
agents paying royalties for the use of cer
tain swindles, they traveled in palace cars
and established a clipping bureau for the pur
pose of manufacturing printed news items
about themselves. Agents were numbered,
“Mikes” were numbered and the games they
used were also known and used in numerical
order.
The head of the “fraud trust,” when arrested,
was residing in a palatial residence in the
south with his wife and a cortege of servants
about him.
The swindles and the manner in which they
were pulled off showed ingenuity worthy of a
better cause.
There was no haphazard work in the opera
tions of the syndicate. It was a most careful
ly managed organization. Its ramifications
covered the whole country. A code book with
a red cover—a sort of “Who’s Who in Graft
ing”—found in the leader's possession, con
tained the names and addresses of 306 of the
syndicate's willing workers, agents or steerers
in all the principal cities of the country. Every
one of these agents had attached to his name
a number. It was his duty to get up jobs or
“plays,” as the syndicate books call them. It
didn’t matter what the game, if the agent car
ried it through to success he got a percentage
of the receipts. These agents were not thugs
or pluguglies or saloon loafers. They were
chosen with particular reference to their edu
cation, appearance, manner of dress, ability
to associate with gentlemen. This fact is shown
by most of the letters captured by the govern
ment.
For nearly two years the syndicate had head
quarters in New Orleans, later moved to Seat
tle. then to Council Bluffs and finally went to
Little Rock, Ark. During all this time the
agents were busy. Wherever an agent was
stationed the books show that the syndicate
had a “stbre,” a genteel word to take the place
of plant or “con game.” Men with money
were interested in proposed land deals. Horse
racing or wrestling were not mentioned. Noth
ing was hurried. Sometimes it took months
to land a victim properly. In one case on
record the agent worked for two years and
at length “tapped” the “Mike,” as the victims
are called, for $37,000. In some instances the
fraud was so smoothly handled that the "Mike”
went back a second time and gave up another
$5,000 or $10,000 before he learned that ii was
loaded.
The syndicate insured itself against “squeal
Ing Mikes”—another name for victims who
complain—by photographing every event. At
some time in the contest a picture would be
taken, and always these pictures contained
faces of the syndicate leaders and the victim
close together, usually shaking hands. These
pictures could he shown to a family, if neces
sary, to prove what father had been doing
when he lost his thousands. They were very
valuable. Several of them were found.
Land propositions were the favorite bait for
men with wealth. The sporting event came
in casually, as a side play such as—they de
clared—-any party of millionaires might choose
to arrange. The leader and his companion mil
lionaires never by any chance induced the
“Mikes" to bet on an event. That was left in
the hands of the agents. The case of a wealthy
farmer in Illinois, will, perhaps, serve as well
as any of the 400 or more recorded, to show
how the swindle was worked. The farmer
wished to buy land as an invest ment. One of the
svndicate’sagentsknew of 5,000 acres that could
be bought for $1.50 an acre, and if bought at
once, might be sold immediately for $7.50 an
acre. That sounded good. The farmer and
his wife accompanied the agent to Little Rock
to see the land. On the road down south the
agent showed supposed newspaper clippings
describing the westward trip of his principals
and other “millionaires" in a private car. The
government found a bundle of these clippings
in the leader's valise. They evidently were
made in a job printing office, but they im
pressed the farmer and his wife and made
them feel important in being allowed to meet
such large men.
There was much delay in arranging a trip
to see the land. The owners were away some
where—they usually were hard to find—but
everything would soon be all right. The farmer
proved, with a draft for $10,000, his financial
standing, a requirement never neglected by the
millionaires, and were shown every courtesy
by the receiving party. He was a daily visitor
in the excellently equipped offices in the South
ern Trust building and became well acquaint
ed with the private secretary. His wife was
taken out in the touring car to the beautiful
mansion—rented—where she met the leader’s
wife, and had a lovely time.
anything to do
with a wrest
ling bout or a
prize fight but
he knew, also,
that the farm
er liked horses
and had run
them himself
once upon a
time. He
touched h i m
where he was
weakest. He
was willing to
bet on a
“fixed” race.
The agricul
turist met the
million
aires and later
he said there
was fully a
bushel of mon
ble when the millionaires
quit betting. It included
tjp ' $10,000 of his money.
After this was finished
the whole party went to a lonely road
a mile outside the city near Fourche
creek. There they found the horses
and jockeys awaiting them. They
were to race to the foot of a hill about one
half mile away. The farmer liked the appear
ance of the sorrel mare on which he and the
millionaires had bet their money and he was
justified, because the sorrel really was a mag
nificent animal.
They got away in good shape, the sorrel in
the lead. The other man, the friend with the
losing horse, was sad. The Illinois farmer
threw his hat in the air and yelled.
But ah, as they say in novels, what’s this?
Something had happened to the jockey on
the sorrel—he had fallen suddenly forward—
he was off—down—on the ground and the
millionaires and the “friend” were running
down the road toward the spot.
When they reached him they found his face
covered with blood, it was flowing from his
mouth, he was injured internally, he was
dying. Fright seized everyone.
Of course the Illinoisan didn't know, he
learned only a few days ago, that the syndicate
jockeys and wrestlers and boxers always bled
much at the mouth. He didn’t know they car
ried little thin rubber sacks filled with blood,
or something resembling it, in their mouths;
that sometimes they bit the sack and some
times burst it against their ears to show how
dangerously they have been injured.
The millionaires said it mustn’t get into the
papers. The farmer’s wife said she wanted to
go home. Then she thought of her husband’s
$10,000. When they turned to see the stake
holder, one George Wilson, he had disappeared.
The millionaires were furious. So was the
“friend" whose horse certainly had won be
cause of the^ccident.
“I am a lumber dealer,” said a Minnesota
man. “I am not 30 years old. I used to go up
to Minneapolis occasionally and there met an
old acquaintance, L»ouis Stowe, whom I hadn’t
seen for years. l\fy family had known him
for 20 years. His father is an Episcopal rec
tor. I took this fellow to my home often after
I met him. One day he said he had a friend,
Frank Myers, an instructor in physical culture,
whose cousin, George Bennett, was private
secretary for three or four millionaires in
Pittsburg, Pa. These millionaires had devel
oped a wrestler, Gorman by name, whom they
would match against anyone. Stowe said the
rr
/? faked DEATH Oh THE FIAT.,
Gordon, asked me to place a bet of $8,000
or $10,000 on the side. I deferred doing
it, however. Shortly afterward George
Bennett, the private secretary, told me
that his money, which he had hoped to
get in Omaha to bet on the match, had
not come and that it might be declared
off if I wouldn’t help. Stowe and Myers
and Shores, the wrestler, wept and plead
ed with me to help them by putting up
the stakes they needed. Finally I consent
ed. The money was to be merely an ad
vance. I got the $10,000 at the bank and
gave it to Stowe to hold, as he was tho
only man I knew well—or thought I did.
He gave me this receipt:
Received of.$10,000
which is not to be bet or hazarded in any
manner. (Signed) LOUIS STOWK.
“The wrestling began promptly. Our
man, Shores, got the first fall. He was
to get the second, too, because the mil
lionaire's man, Gorman had agreed to give
up. But in the second bout Shores fell,
and apparently bursting a blood vessel,
gave every evidence of dying in great
agony.
“Everyone was greatly excited. Gor
don wept because of the disgrace attach
ing to his family in having him present
at such a death. In the midst of the ex
citement, Bennett, the private secretary,
rushed up and whispered that he was
_ ruined. He had bet his employers’ mon
^ ey—the stakes he held for them—and
must now escape to Canada. I was hus
tled out of the building on the plea that I was
a guest and must be protected. One of the mil
lionaires remained with the supposed corpse.
“Stowe professed to be ruined. I lent him
enough money to get out of town. He said he
was sick, so I gave him my overcoat. They
all got away. I was glad to get out of town
and into my own slate. I never saw any of
them again until now—in the Little Rock jail.
Stowe never has been caught—nor has my
$10,000.”
It is interesting that the case which resulted
ultimately in the arrest of the swindlers, arose
out of another friendship of several years’
standing. This was the Sutor case. Mr. Sutor
is known to many persons in Kansas City who
have spent the summers at his resort, 'Cass
Lake, Minn. He had known one Barney Mar
tin for years, he said, and liked him. He knew
him so well and liked him so well that he never
supposed he would defraud him. When Barney
gave him a “tip” on a supposed good thing Mr.
Sutor saw no valid reason for turning it down
any more than he would at a track with every
day races. Four or five horses were to run in
a race at Council Bluffs—this was in August,
last—and Mr. Sutor decided to go over with
Barney and put down a bet. He did. He had
to borrow $4,000 to make up the $5,000 needed.
But it was a sure thing, Barney said, and Bar
ney certainly knew. Of course Mr. Sutor’s
"sure thing thing” fell in the stretch or the
jockey fell off and “bled” and scared every
one away as usual.
Mr. Sutor thought it over at home and de
cided to get busy. By the time he had so de
cided all the “millionaires” had fled from
Council Bluffs, Barney with them. But the
government was in it now. Barney had writ
ten a letter helping Sutor to borrow the $4,000
and so had used the mails to defraud. The fed
eral officers got busy at once. Decoy letters
were sent out by the postal inspector in Coun
cil Bluffs, J. S. Swenson, and the syndicate,
so adroit in fooling others, swallowed the bait
itself.
In the closing days there came Inspector
Swenson. In a few hours he had enlisted Sher
iff B. L. Roberts, Deputy J. J. Hawkins, Du
rand Whipple, the six-foot son and law partner
of W. G. Whipple, United States district at
torney. Warrants were issued. Revolvers were
examined and tested. The trap was ready.
What warning the syndicate had may never be
known, but it is true that when the officers ap
proached the mansion the syndicate was just
getting ready to leave. The leaders were in
the touring car with their valises. They knew
instantly that they were in for it. They sprang
from the car.
"Hands up—quick!” was Inspector Swen
son’s crisp demand and up went two pairs of
hands. One man's were elevated only to his
waist. Whipple didn’t like that. He searched
the leader, but finding no weapons was about
to step back when a thought came to him, that
may have saved his life. He seized his hands
and pushed them up high. Then he lifted the
man’s vest, and there in the trousers band,
was a revolver. It had been within a fev*
inches of his fingers all the time.
The syndicate books were very carefully
kept. A large envelope labeled and bearing
the name of the victim, the numbers of the
streets and the amount was kept for each case.
There were 100 or more of these envelopes.
Each contained the minutes of every meeting
with the “Mike,” showed, who was present and
how the money was handled and also the origi
nal agreements signed by the “Mike” and the
syndicate members. This was necessary, not
withstanding its danger in case of arrest, be
cause of the extensive operations conducted. In
such affairs there could be no arguments or di»*
putes.
CAMPAIGN
FOR HEALTH
HOUSE FLY AND MOSQUITO TO
BE ATTACKED BY THE
SOUTH..
DR. WHITE IS IN CHARGE
Conqueror of Yellow Fever Epidemic
of 1905 is Selected as Leader of
the Work of Prevention of
Disease.
New Orleans.—The entire South
has notified the mosquito and the
horse fly that they are undesirable
citizens and that under no circum
stances will they be permitted to re
side in, or frequent the inhabited
communities. But the authorities
have not been satisfied with declara
tions. They have not forgotten the
lesson taught them in 1905, when the
yellow fever came.
So, all over the South in the smal
ler villages as well as in the bigger
cities, the health authorities are open,
ing an early campaign against the
disseminators of all the deadly dis
eases—the mosquito and the house
fly. It has been demonstrated that
the mosquito is not the only disease
spreader. He—or she—does spread
yellow fever, but the house fly has
been tried and convicted of the crime
of disseminating malaria, typhoid fe
ver and several other diseases, no
less cieaaiy.
To begin with, all tanks of water,
cisterns or vessels which hold water
or which might be filled with water
after a rain, must be covered and
screened with a screen of at leas, 18
strands of wire to the incn. Stand
ing water on lots or commons is not
permitted. All shallow lots must be
drained or kept dry, or the owner is
subject to a severe penalty. All sta
bles must have receptacles for ref
use, and this refuse must be moved
every week. Where there are large
natural bodies of water, which it is
impossible to drain, the surface must
be disinfected and oiled at frequent
and regular intervals. Even the wa
ter used in the sprinkling carts is
heavily charged with the strongest
disinfectants.
Under the direction of Dr. J. S.
White, the marine hospital surgeon
who fought and whipped the yellow
fever in 1905, a regular set of laws
and precautions have been devised.
These are practically the same in all
the Southern cities and states.
Policeman Shoots Boy.
New York.—Harry Jansen of the
Pastime A. C. won a Marathon race
at Celtic park, Long Island City, in
which 17 amateurs competed. Just
before the race, a riot was precipitat
ed among the 5,000 spectators, who
threatened harm to Charles Haas,
a special policeman, who had shot
and dangerously injured Thomas R.
Daly, a 14-year-old boy, who tried to
smuggle his way into the grounds
by climbing over a fence. The crowd
chased the special policeman a quar
ter of a mile.
He took refuge in a house and was
rescued from the crowd by the police,
who took him into custody.
Niagara Causes $1,000,000.
Buffalo.—The voice of Niagara was
silenced Sunday for the second time
in the memory c.f man. The first time
was late in February when, following
a severe northerly blow, the falis
ran dry. Now, following a severe
southwester, the river is frozen solid
from bank to bank. Water poured
over the window sills of the power
house of the Ontario Power Company
and flooded the machines. The tracks
of the Great Gorge Route were cov
ered from the lower steel bridge to
Lewiston. Conservative estimates
place the damage at $1,000,000.
Much Tobacco Burned.
Mayfield, Ky.—Fire, said to be of
incendiary origin, destroyed four
large tobacco warehouses here early
Sunday. These warehouses were
owned by Lewis & Gordon, Richard
Waldrop, Sherrill & Bearnett and the
American Snuff Company, respective
ly. These firms are independent and
have been buying a great d.eal of
loose tobacco. The loss will reach
about $25,000. There was about 300,
000 pounds of tobacco lost. The fire
was not discovered until it was un
der full headway.
Woodman Commits Suicide.
Chattanooga, Tenn.—N. S. McNeal
cf Howe, Tex., committed suicide Sun
day on a Southern Railway train. As
the train was leaving Gurley, Ala., en
route to this city from Memphis, Mc
Neal shot himself, literally blowing
his brains out. The body was put
off the train at Paint Rock, Ala. Pa
pers in his pocket indicated he was
a member of Camp 373, Woodmen of
the World, at Howe, and was en
route to Morristown, Tenn.
Wireless Telephone Successful.
Parish-Naval Lieutenants Colin
and Jeanice, the inventors of a wire
less telephone apparatus, with which
they succeeded last fall in commu
nicating with Dieppe from Paris, have
tested a new and greatly improved
system. The minister of marine ex
changed conversations with operators
at Melun, a distance of 30 miles, and
he declared the result was a vast
improvement on that attained by the
ordinary telephone. The sound was
clearer and purer.