The grafter

Table Of Contents

Page

Chapter I. A Side Line 7

II. The Possibilities of Matrimony 38

III. The Infallible Collection Agency 61

IV. Proven Eligibility 89

V. The Victimization of Charles Green. . . 115

VI. SiMPKiNS AND Hawkins 152

VII. Hawkins and Simpkins 207

VIII. The Washington House 237

IX. The Punishment Fits the Crime 271

CHAPTER I.

A SIDE LINE

I was graduated from the High School of

S , Kansas, at the age of eighteen. From

the time that I had any ambition I had intended to be a lawyer. The life of the farm did not appeal to me, and I managed to work my way through a law school in St. Louis, with much hardship and self-denial. I passed

well, and returned to S , to put out my

shingle, believing my future secure.

I thought that among my old friends clients would flock to me. I pictured myself leading the Bar of the District, going to the Legislature, perhaps to Congress. I think I v/as as honest as the average. I was not particularly greedy for money, but I was greedy for success. I was unwilling to wait. I wanted everything quickly — right away. And when I found that the law business was a long, slow wait, it palled on me.

As the days passed the lack of seekers of legal advice made the future look less rosy, and for a week not a client made an appearance; an occasional farmer, however, would tie his horses in front of my office, but only to raise and later shatter my hopes by passing my office unnoticed and entering some near-by store.

The lack of business was so different from what I had expected that my only hope of success seemed blighted; I was almost discouraged and disheartened, and occasionally asked myseK if the assiduity and faithfulness I put forth in the acquirement of an honorable profession were not slowly proving to be of insignificant consequence.

One day as I was restlessly whiling away the time, a new thought came to me — I came

to the conclusion that if I stayed in S and

business continued in the future as it had in the past, I would of necessity be compelled to close up for lack of business.

But one thing remained to be done, and I at once began to devise ways and means by which I might conduct something on the side. What it would be I was not long in making up my mind : I had heard of men who, with no capital, had started real-estate businesses and become prosperous and fairly well-to-do. Selling real estate was something that required but little knowledge, and, with my legal and commercial education, I felt as well qualified as anyone else to sell real estate.

I had one competitor in the real-estate business, but I completely ignored his presence, as far as competition was concerned, and began to advertise, in a small way, for either farm or city property for sale or rent.

Several farms were listed with me within a few days after the appearance of my first real -estate ad.; and one day a prospective buyer drifted into the office. He said he was in the market for, and would buy, if quoted a reasonable price, the first well-improved quarter-section of Rooks County land that was shown him.

I told him I had a few very choice quarters on my list, and he suggested that he would look them over at any time. He said he had "just blew in from Texas" on the previous day ; that he was a stock-raiser, and had just marketed a train-load of cattle, and that he was going to invest in a farm.

It looked like a sure sale to me. I hired a livery rig and spent an entire afternoon in showing him the farms that were Hsted with me, but after I had enumerated the many reasons why each farm I was showing him was a bargain, he seemed to have a prepared and memorized hne of excuses why that which he was shown was not what he wanted.

On our return to town, I took the horse to the hvery stable and paid for its hire. I immediately went to the office, and it was there that I, disappointed as I was at not having made a sale when the prospects were so bright, devised and formulated a theory by which I later dumped the dear American "public for the appalling and stupendous sum of four hundred thousand dollars.

I was a law;y^er and real-estate agent, at considerable expense in advertising and keeping up an office and other incidentals ; I was entirely upon my own resources, and I alone was responsible for what I did ; I had, since I first left home, pertinaciously striven to attain success by equitable and legitimate means, but finally came to the conclusion that the law business was a complete failure in so small a town, as was also the real-estate business.

I had spent one half-day's time and two dollars in money for a livery rig, in the endeavor to sell to one who promised to buy that which he was shown, but only to come to the conclusion that all he wanted was an outing at my expense. I asked myself such questions as : ''How many prospective buyers bought?" "Was not the real-estate business a farce, especially in so small a town?" And "Would it look just and feasible to property-owners for a real-estate agent to charge an advance fee, to cover (alleged) incidental expenses incurred in connection with showing their property to possible purchasers?"

My newly devised theory I thought was at least worthy of consideration and an effort to determine its practicability.

My next caller was a local man, who said he had a store building of which he would like to dispose. I told him that, unlike other real-estate agents, I charged an advance fee of ten dollars in addition to a commission, and that I was confident I could dispose of his property in a reasonable length of time. He at first looked upon the advance fee with disfavor, but I was not long in convincing him that it was only fair to both that he should pay my required fee. He finally handed me a ten and left the office.

I was very much elated and enthused over the merit of my new plan, and after he left the office I went to the local editor, paid him five dollars, and told him to run a large ad. for me. Five dollars will buy considerable space in a small town paper ; and in the next issue my name appeared under a very attractive ad.

It was not very long until I was visited by numerous farmers who desired to dispose of their alleged valuable holdings, but the prospective buyers were few in comparison. The condition was partially attributable to a big boom which the town had undergone some two years prior thereto, which was followed by a complete crop failure, and as a result there was a general scarcity of money in that vicinity and the unfortunate farmers were eager to rid themselves of their holdings.

For a month business was good, and in that time I had taken in considerable money, as about one out of every three property-owners paid me a ten before they left the office, some without manifesting the slightest aversion.

I did not sell a single property, although each of my clients who Usted was given a short space in the local paper, which I of course paid for.

But few purchasers called and none of them bought.

However, it was but a few weeks until my advertising had reached its limitation, especially through the local medium, and nearly all property-owners in the county who had desired to sell had either listed with me, or refused to do so because of their disapproval of the ten-dollar advance fee.

However, I was not at all discouraged because business had suddenly dropped off, as, after considering the small circulation of the local paper and the results even it had brought me, I immediately came to the conclusion that there was no limit to what might be done, and that the fundamental requisite to wealth by my new method of listing (not selling) real estate was judicious and persistent advertising.

Although I looked upon my new method as perfectly legitimate, or was supposed to be, it might be considered in a different light by some because of the incentive to list new properties being greater than that to dispose of property already listed. However this might be, I decided to seek new quarters, and that they would be St. Louis. In a city of such size I would be in touch with various publications through the columns of which I might reach thousands of people ; and, too, it would be far more desirable to do business mostly by mail with irate clients, whose property I might fail to sell, than to advertise mostly in local mediums that were not far-reaching, and thus be compelled to deal with local clients personally, possibly resorting to fistic encounters to assuage their animosities. Even supposing my new method be looked upon as illegitimate and fraudulent (which it later proved to be), it could hardly be said that such would prove financially distressing to any one individual, as every client was charged the same fee, and almost any propertyowner can easily part with the small sum of ten dollars. So, until my business would be proven legally illicit, I had a large field in which to work, and began to make arrangements to abandon my office and start up in St. Louis.

THE EXACT SCIENCE OF THE BUSINESS.

The day following my arrival in St. Louis I rented from a local real-estate man a second-story office room, and fitted it up as best I could with some office fixtures, and was ready for business. And from the money I had gathered up in my home town, my future bore a propitious aspect.

I made my way to the publishing* house of one of the leading dailies of St. Louis, at which place I left a small advertisement, with instructions that it be run every issue for one week. In it I stated partially as follows :

''I can sell your real estate, property or business, no matter where located, quickly for cash, in any part of the United States. I have formulated a new and systematic plan of selling real estate, which is wholly unlike that used by other so-called ' real-estate men ;' I can actually sell your property in thirty days from date of listing."

I returned to my office to await results, and, in a few days after my inception, property-owners were calling at my office in such numbers that I was unable to answer all written inquiries from possible clients. (I suppose the poor dupes thought it was in my power to compel the next Legislature to pass a law making it a crime for those who had capital not to buy real estate, thus promoting Socialism.)

The fact of so few insertions of so small an advertisement attracting so great a number of people would seem appalling to those familiar with the results obtained from advertising; but persons who find it necessary to rely on the columns of publications to place them in communication with prospective buyers, would answer my advertisement where they would pass up hundreds of others unnoticed. There was a reason for it : My advertising was the result of earnest and persistent brain-work on my part and my knowledge of human nature, and I always promised the public something definite for their money ; in fact, I promised clients definitely such improbable things that it would have been utterly impossible to live up to my advertising.

My plan was to charge a commission of two and one-half per cent, payable when a client's property was sold by me direct (and I cannot call to mind of ever having made a sale) . But before listing a property I charged an advance fee of ten dollars, which it was the understanding would be deducted from the two and one-half per cent, when a sale was made.

I agreed and guaranteed to sell any property listed with me within thirty days from date of listing. (If, however, I failed to make a sale in thirty days, I further guaranteed to charge no fee for my services thereafter.) For this ten dollars each client was given less than fifty cents' worth of advertising, depending largely in which of the local papers I advertised his property.

That the reader may get an exact idea of the amount of advertising given a client in actual space, will say, for instance, if a local citizen listed a store building he would be given one, and sometimes two, insertions of an advertisement, such as the following, in some local paper with a small circulation and consequent cheap rates :

"For Sale— Store building, $5,000.00. Box 256, St. Louis."

Or, if a quarter of land was listed, the ad. would appear thus :

On the day following the insertion of an ad. containing properties for sale, a copy of the paper containing a brief description of each property was sent to the owner; or if I felt in a liberal mood, a client was given two insertions, in which case he would receive copies of both papers.

In addition to the above, I frequently had lists printed containing a very brief description of the property listed, but no client's property appeared more than once on these lists. These lists were mailed out to persons who made inquiry as to any property I had for sale.

When I advertised property either in newspapers or on lists, I always inserted the owner's name and address, and devoted quite a little space in urging prospective purchasers to always take the matter of prospective purchases up with the ow^ner direct. My object in doing this was to avoid correspondence from which I would not be financially benefited, as the ten-dollar spots were what I was after.

After six weeks or a couple of months my business had grown to such an extent that I found it absolutely necessary to increase my office force and get up a series of circular letters, with which to reply to the many inquiries I was receiving. I soon had framed up a number of *' Answer" and *' Follow-up" letters in which I covered my plan most thoroughly, and which I used until I was later given my choice of discounting my then present methods of business or being indicted for fraudulent use of the mails. And that these letters proved to be "money-getters" from the start will be evidenced later in this story.

With them I could answer any question that ninety-nine out of a hundred propertysellers would ask. And I had letters to apply to special occasions. For instance, if a property-owner would write telling me that he had confidence in my ability to sell his property but that his neglect to list was because of lack of funds, or because his wages had just been garnished, or because "the family produce had not been marketed," I would acknowledge receipt of his letter and assure him that his faith in my plan was appreciated. I would further state, that inasmuch as I had received many inquiries for and wanted just such a property as his on my list immediately, I had decided to make an unusual proposition to him ; that is, I inclosed him a note for ten dollars, filled out in my favor and due in thirty days, with eight per cent interest from date, and agreed to accept that in place of the ten-dollar cash retainer.

This generally met with the approval of, and was accepted by, the party to whom such letters were written. Inasmuch as such notes were not made due until the expiration of the time in which I had promised to sell their property, such an offer could only be looked upon as being mutually fair.

Such notes were almost as good as cash to me, and their disposition was both speedy and systematic. All were disposed of to a few advertising houses and publishers, with whom I had made a special and written agreement whereby they were to accept these notes for space in their publications at 90 per cent face value ; all notes so disposed of, however, were indorsed by me as payable '* without recourse on me in any event," which indorsement always excepts the indorsee from payment.

On written request from a possible client for information as to my plan and terms for

A SIDE lin:^ ^1

disposing of real estate, I acknowledged receipt the same day, and assured the owner that his letter had received my careful attention ; that his property could certainly be sold for the price asked, provided it was properly advertised and aggressively pushed ; that there was a man somewhere who would buy it, and I was in position to find him, and do it quickly ; that I had made a careful and systematic study of the problem of bringing the party who wants to sell into communication with the party who wants to buy, and experience had proven to me beyond all doubt that I had the only plan in use in the United States by which I could dispose of real estate or other properties in a specified length of time; that I did not confine my advertising to any one locality, as a buyer is often found where least expected; that my advertising reached millions of readers and almost invariably brought about the desired results; that as soon as a property was listed with me I made a complete and systematic search of my files, and no person who had made inquiry for a similar property was ever dropped from my list until he had bought or was out of the market.

After answering a prospective client's first letter, his name was indexed alphabetically in a book; and when a week's time had elapsed after my reply to his letter, if the prospective client had not listed, he was given follow-up letter No. 2, impressing upon him the importance of listing early if he really wanted to make a speedy sale ; and pointing out the fact that I wanted just such properties as his on my Ust; that I had greater facilities, a more complete organization and a more resourceful system than other brokers ; that every transaction, large or small, would receive my careful attention ; that my terms were just as low as they could be and bring about the desired results ; that my methods for finding buyers were strictly up to date, and not one hundred years behind the times.

I further pointed out that my advertising did the work ; that I knew what to advertise, when to advertise, and where to advertise; that a paper that is good to advertise a stock of groceries in, would probably never find a buyer for an undertaking business; that at that particular time I was short just two or three such properties, and that I was especially anxious to list either theirs, or a similar property in their neighborhood.

I daily received hundreds of letters from people who had previously made inquiry as to my plan, who would strongly urge that I list their property on different terms, and wait for the ten-dollar fee until I had sold their property. To all such I would reply to the effect that I could not consistently and would not deviate from my terms under any circumstances ; that I dealt with all clients fairly and impartially, and that a scavenger would be charged the same fee as would a banker or millionaire ; that no successful business man would grant one client a favor he could not grant to all.

My daily receipts were greatly increasing, and, in addition to local dailies, I began to advertise quite extensively in farm journals and in magazines that are edited almost exclusively for the farmer. The farmers are easily duped, but my proposition on paper looked like such a straightforward and legitimate proposition and such a square deal to all, that I would gain the confidence of even the most incredulous.

^4 mE GHAFfEIi

I was not only claiming farmers as victims, but my dupes soon numbered among the best class of people throughout the United States. Prominent local men of all professions who had property for sale would call at the office, and after a short session I would, in three cases out of four, talk them out of a ten before they left. Some were lawyers, doctors and politicians of the highest social standing, and were themselves busy figures in the commercial world.

My advertising finally created much comment, not only through the local press, but papers throughout the Middle West often contained comment about my extensive advertising ; and local real-estate men were considerably agitated over the manner in which I advertised, and the amount of space taken in some of the leading papers.

Frequently I was visited by real-estate men who called more through curiosity than anything else, and to inquire as to my methods. It was an inexplicable mystery to some of them how I could afford to pay for such ads. as I was running.

Some local real-estate men branded me as a fraud of the first water, and would warn the public in their own Hmited advertising against *'A certain local fraud who styled himself 'Real Estate Specialist,' and who promised to sell property in all parts of the United States quickly for cash in thirty days."

I soon notified the publishers who accepted such advertising from my competitors, however, that if they expected future business from me they would reject all advertisements from my competitors containing admonitions against my business and character. And they did this.

On the first day of January my daily receipts were approximately five hundred dollars in postoffice money orders, drafts, checks, notes and currency, and I thought this sufficient to warrant the installation of something more elaborate and decorative in the way of office fixtures and furniture. I purchased several new office desks, about seventy-five sections of Globe- Wernicke sectional bookcases, and filled the latter with law books, that the office might bear a prosperous appearance ; I rented a room adjacent to the one then occupied, and made arrangements with the landlord for a complete remodeling of the two rooms. And after this was done I had

26 THE GRAFTEIi

an office of which I was proud, and I do not think it could have been perceptibly surpassed in costly and luxurious furnishings by any office in the city conducting a business of a like nature.

I also increased my office force until I had eight young men from 18 to 25 years of age employed in clerical and stenographic capacities.

I attributed my rapid progress in the business partially to the treatment doled out to my employes, all of whom were good workers, after becoming accustomed to my methods and what was required of them. In hiring a clerk I always promised a perpetual position, providing I received satisfactory services in return for my money. I started all clerks and stenographers in at the same wage, regardless of their ability, efficiency, broad general knowledge, or past records.

In hiring a new man I paid him a fair and reasonable salary to begin with, and increased this weekly check as his services would warrant, until he received $15 per week. I would give almost any applicant a trial, when in need of a clerk, but if he was incompetent, or afflicted with **indolencitis," he lasted about twenty minutes and was told to get his hat and go, or be kicked down stairs ; if he was a whistler or a good vocalist, he would be accorded the same treatment, as I never would tolerate any such in my office. I was in business for myself, and was not running a kindergarten establishment at my expense for the purpose of making dependent children self-supporting.

One of the first clerks I hired, and who later proved to be my right-hand man, was "Shorty McCann." I always called him Shorty because of his youth at the time of application. I gave him work only because of his persistency, and to do away with his frequent personal application.

Shortly after I started up in St. Louis I put an advertisement in a local paper for a stenographer. I was putting in long hours, and always appeared on the scene of operation early in the morning, and at 7 : 30 A. M. on the day following the advertisement, a youngster appeared in the doorway and blurted out : "Say, Mister, do you want a steno.^^" "Yes," I replied, "but you are too young." "Oh, I don't know. I know a few things," the kid said.

28 a:HE GRAFTED

But I told him that his adolescence was against him, and he slowly descended the stairs. In the next two days this youth made four personal applications for the job. The fourth time he called, he said: "If you need a good man, you'd better take me on," and further added that "youth was not necessarily incompatible to his chosen vocation."

That's how I hired Shorty, and he was not long with me until he was drawing a check of twenty dollars per week and fifty cents per hour for overtime, and his services rendered were fully equivalent thereto. In fact, every hair in his head knew something and he could be trusted in any capacity.

From early in the morning until an hour before quitting-time, every stenographer was at it hammer and tongs, either addressing envelopes or filling the address on form letters.

With eight typewriters on the hum by skilled and speedy operators, it can easily be imagined the business that was done. If the incessant hammering of typewriters counted for anything, persons who called at the office personally must have thought I was conducting a land-office business (whether I was selling any land or not) . An hour was consumed each day in getting out the mail, which generally filled four waste-baskets to their capacity.

In this each clerk cast all other duties aside and participated. A self -addressed envelope, a gummed label bearing my photo, and other literature were inclosed with each letter, and it always took a full hour's hustling to make inclosures for, fold and seal and later stamp from fifteen hundred to two thousand letters a day. About forty dollars a day was what I paid out for postage stamps.

When my time was not taken during the day with advertising men or clients who had called in person, at all times it was consumed in opening up incoming mail. While I opened all mail, the only letters receiving personal attention were those pertaining to advertising — I merely picked out the tens and my clerks did the rest.

Another feature of material aid in bringing in the money and winning the confidence of the people was a little booklet I wrote up containing many spurious testimonials and letters of recommendation, all of which were alluring, by the pen of some well-satisfied client. Some of these letters credited me with making a sale "in just a few days ;" some were acknowledgments of purported *' drafts for large sums," which would lead prospective clients to believe were my ''commission from some big deal ;" others credited me with being the ''Greatest Real Estate Specialist of the present day ;" others would contain something like this: "Your new method of selling real estate is certainly wonderful, and I never would have believed you could have made such a speedy sale."

To some of these supposedly genuine testimonials the name of some relative was appended, and to them, of course, I frequently enclosed stamps with instructions to answer all possible letters of inquiry concerning my ability to sell property.

AN UNEXPECTED GUEST.

Everything had thus far gone peacefully as far as any disastrous interference was concerned, until one day one of Uncle Sam's emissaries drifted into the office, with a large burdensome package under his arm. He was a tall, athletic man with clear blue eyes, of perhaps thirty-eight years, and, from the time he entered the office, I had been aware of the quest of his errand as well as if he had been clothed in an American flag as emblematic of his vocation.

"Are you the proprietor?" he asked.

*'I am no other," I replied.

"Well," he goes on, "I am here to talk with you personally."

"I know it," says I, as he followed me into my consultation room, which was replete with luxurious leather chairs and other like fixtures, and might have been taken for the private office of some steel magnate or James Patten. He drops leisurely into a leather chair and says :

"Please submit to me any literature you may have descriptive of your method of handling real estate, as well as any circulars or pamphlets pertaining to, or used in connection with, your alleged real-estate business."

I rang the buzzer for Shorty and told him what was wanted.

"You seem to be conducting quite a business," says the Post Office Inspector.

"I am," says I; "in fact, I believe I am conducting one of the largest and most successful real-estate businesses in the country."

S2 THE GRAFTER

"Comprehensively interpreted," says he, '*I would take that statement to mean that your income is greater than that of any other real-estate agent or firm in the country."