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prices of American railroad securities. It the way Congress really works. It is affects the chances of China's borrowing more interesting now than ever because of money. It affects, more or less, the do- the new players in the game. mestic markets of every country in the In early numbers of the World's WORK world that has a considerable foreign trade. Miss Sarah Comstock will write true por

traits of women of real achievement — not A FEW ANNOUNCEMENTS stories of women whose achievements are

notable only because they are the deeds of N OLLOWING Mr. Hale's article on women, but because of their inherent and R “Watching President Wilson at fundamental significance. 1 Work” will come others by him on Mr. C. M. Keys, who writes in the next “Who Governs the United States," – a number “Canada's Cure for Strikes," was graphic picture of the men who make Wash- a classmate of Mr. Mackenzie King, the ington what it is, and an intimate picture of author of the Canadian Arbitration Act, the machine that governs us. There is no when he first achieved prominence, curimore interesting study than a study of ously enough, by leading a student strike.



- VERY year, as the building due course he "took out” ten shares of

season comes around, the that association's stock; and a little

World's WORK hears from more than a year ago he moved into a L phabla

people all over the country fine new house, built with the aid of $2,000

who are trying to save money that the association had lent him. to invest in homes of their own.

Without going into the mathematics of “But it will take such a long time to this investor's experience, a few of its accumulate enough in the regular way," phases may be explained briefly, to show complain most of these folks. “Isn't how such associations work. Every share there some way to build and pay back?” of this particular association's stock repre

A question like that was asked three or sented an ultimate value of two hundred four years ago by a man who recently dollars, and called for monthly payments wrote again to this magazine about of one dollar in dues, to be continued another kind of investment, and incident- regularly by the holder, or subscriber, ally told how he had followed the until the total of the sums paid in, inadvice that had been given on the former creased by the pro rata distribution of the occasion, and how pleased he was with association's profits, amounted to the the outcome.

fixed value of the stock. It is timely to refer to his case, because Ten shares, then, gave the holder an it is typical. He was a salaried worker, ultimate claim against the association living in a small town in New Jersey. He amounting to two thousand dollars. explained that he had managed to save Against this he had the right to borrow, enough out of his monthly earnings to pay upon presentation of satisfactory real on the instalment plan for a good building estate security. The procedure was for lot. But, even with a start as good as him to apply for his loan in accordance that, he had begun to despair of realizing with certain rules laid down in the assohis ambition, until he heard of a certain ciation's by-laws, to be awarded his money building and loan association in a neigh- by entering into an agreement to pay a boring town, and learned how it had for "premium” of one dollar a month, or ten years been assisting people just like himself cents a share, besides his dues, with an to earn their homes for good and all. In interest charge of 6 per cent. a year. He


nume. An extend officially

was then ready to sign the contract with is in four states — Pennsylvania, Ohio, his builders.

Illinois, and New Jersey. There is room, Meanwhile, it was necessary for him even in the states where they are now most to pledge to the association the shares numerous, for more institutions of the which represented his future savings and, kind. An extension of their usefulness in addition, to give a first mortgage on his was recently urged officially by Mr. George property. Upon becoming a borrowing C. Van Tuyl, Superintendent of Banks of member he had to pay into the treasury, New York state, in which are 229 local in addition to the regular dues on the associations with a membership of 140,000. shares, the premium and the interest on In his report to the legislature on the the loan, all amounting to twenty-one 15th of March, the Superintendent said: dollars a month. In from ten to twelve “There is probably no considerable years after the first payment at this rate village in the state in which a properly he will have paid off the mortgage, prin- conducted savings and loan association cipal and interest.

could not be organized to advantage, and This illustration is of the working of one it is quite possible that their development of the many plans used by the true, or in the rural districts of the state would local,” building and loan associations satisfy existing demands for coöperative

- the kind that stand for savings and for lending institutions. They certainly enhomes through coöperation. Of these courage thrift and home-owning, and there are more than six thousand in the enable the honest and the frugal to obtain United States. Most of that number loans whenever adequate security can be are strictly mutual: that is, they extend furnished, either by the individual boronly to members the right of management rower, himself, or through the coöperation and the privileges of borrowing money of other members.” and sharing profits. They are called But the usefulness of these societies is "local,” “neighborhood," or "home- not all on the side of the borrower. Instead" associations, or sometimes, as deed, if they did not afford to the man who in Massachusetts, "coöperative banks,” can save only by fives and tens a safe because they lend money only on property means of investing for income, they would whose value can be determined easily fail in their purpose of promoting the through personal inspection by their own ownership of homes. Reports of the competent officers, and, obviously, only to associations of two typical states show people whose responsibility is known, in a that for every borrowing member last general way at least, to all whose interests year there were four who were merely are at stake.

investors. Such associations have to be distin- In scarcely any other way can an inguished sharply from the so-called “na- vestor of limited financial experience keep tional" associations, and other types of his savings so closely under his own eye. loan companies, organized, not like the Jones may not want to build, but he does locals, as semi-philanthropic institutions, not hesitate to entrust his monthly surbut as ordinary business corporations, plus to his local society, because he knows conducted solely for the personal profit it will be wisely employed in making up a of small groups of stockholders and officers, loan to some fellow citizen whose house, lending money on “risks” in remote places, which he may watch grow from its and not infrequently managed as purely foundations, will be mortgaged to protect speculative enterprises.

him; and because he believes his neighThe pity is that the local building and bors, Smith, Brown, and all the rest, wiii loan association idea is not wider, geo- keep up their payments of dues, premium, graphically. The six thousand in the and interest to the last extremity to prowhole United States have nearly two and tect their properties from foreclosure. a half million members, who own coöpera. Perhaps Jones may have studied the tively more than a billion dollars of assets. reports of Mr. C. S. Cellarius, Secretary Yet one half of their total membership of the National League of Local Building and Loan Associations, which show that abuses, of management, serving to bring these are among the most economically home to investing members the stern :managed financial institutions in the world fact that they are not depositors entitled and that, even in localities where the lend- to interest, as they sometimes erroneously ing rates are comparatively low, they have, believe, but stockholders, everyone entitled as a rule, no difficulty in declaring divi- to his proportion of the profits, but also dends of at least 5 per cent. He probably liable for his proportion of the losses. knows that, if he wishes to withdraw his But, after all, the record of these local savings before his shares have obtained societies is remarkably clean. Next to their full value, he may do so by giving the carefully regulated savings banks, reasonable notice and by agreeing, per- probably no other kind of institution is haps, to accept a slightly smaller division more fit to cater to the needs of the small of profits than he would otherwise be investor. It would be a wholesome thing entitled to.

to see them commanding a larger part of It should not be imagined, however, the small savings of the Nation, to the that the building and loan society can exclusion of some of the more modern assure investors of "absolute safety.” instalment investment schemes of doubtThere have been not only mistakes, but ful suitability for the financial novice.







TANDING just inside the Mr. Flynn had just been made chief of
door of one of the Federal the Eastern division of the Service.
Court rooms in the New York “This new broom will sweep you both
Post Office building one after- into a long term prison before it's worn

noon in the summer of 1903, out,” said the big man — to himself. Mr. William J. Flynn, now head of the The dapper little Italian was Vincenzo United States Secret Service, and an Lupo; the man with the crippled arm Assistant United States District Attorney Giuseppe Morello, both ex-convicts from watched two of the worst Italian criminals Sicily. Mr. Flynn's first important task stroll jauntily to liberty. One of the as head of the division had been to arrest criminals was small and dapper, the other Morello and Lupo, with several of their powerfully built and of medium height, gang, for counterfeiting. But the two his right arm crippled and the hand thrust principal rogues had been mere spectators into the edge of his coat.

at the trial and conviction of their subor"These pigs of the American police dinates, for the Secret Service agents had are not of the calibre to deal with you been unable to connect them with the and me," remarked the Italian with the counterfeiting enterprise. Hence Morelmaimed arm in an undertone that reached lo's complacent reflection that the AmeriMr. Flynn, as it was intended to do.

can "police pigs” were not competent to "A new broom sweeps clean - nit," cope with him and Lupo. observed his companion.

Morello and Lupo are now serving 25

and 30-year terms respectively in the Service of which Mr. Flynn was then a Federal prison at Atlanta, Ga. Mr. subordinate member. During the latter Flynn put them there, and that is one part of the year a flood of counterfeit of the reasons why he is the Chief of the money was put into circulation among the Secret Service now.

humble shop-keepers of the poorer parts To understand the situation it should of the city, many of them recently arrived be borne in mind that the Italian crime Italians who were unfamiliar with our problem in New York and the rest of the currency. The men who passed these United States came into existence with counterfeits were all Italians, who genthe great wave of Italian immigration, be- erally plied their trade about dusk, making ginning approximately with the first year small purchases in shops that were unof the century, that has since brought into lighted for economical reasons, tendering the country thousands of ex-convicts of spurious two-dollar treasury notes in the Mafia and the Camorra among more payment, and receiving change in good than 2,000,000 of their honest and in- money. dustrious compatriots. Morello and Lupo Mr. Flynn, with some of his co-workers were established here before this influx in the Secret Service, was put on the case. began, and were proficient in what are the trail led to what is known to the now known as Black Hand crimes before police as “Little Sicily," and into the home that term began to be applied to these of Morello, and he and several of the men offenses. Morello, indeed, had been who had been passing the spurious bills known to the New York police for several were taken into custody. As on all the years before he went into partnership other occasions that Morello had been with Lupo. The maimed Sicilian had arrested with members of his gang, they been arrested for murder, kidnapping, suffered and he escaped. No pressure extortion, and blackmail at least half a that the prosecuting officers could put score of times before his transactions in upon the underlings would induce them counterfeit money brought him within the to incriminate him, even though immunity view of the Federal Secret Service, but, from punishment was offered those of though morally certain of his guilt in them who would turn State's evidence. every instance, the police had never been there was nothing left to do, therefore, able to fasten a crime upon him.

but to set Morello at liberty again. Morello was a fugitive from justice from Three years later, when Mr. Flynn had Italy under a ten-year sentence for for- been made chief of the Eastern division gery. He was about forty years of age of the Service, a deluge of counterfeit when he came to this country, rough in five-dollar bills swamped the Italian settleappearance and uncouth in manner, but ments of New York City. They were an intelligent and forceful rogue. The known as the “Morristown fives," because police have never found out how his right they were imitations of an issue of the arm had been crippled. Incapacitated for National Iron Bank of Morristown, N. J. manual participation in crime, his brain Mr. Flynn, who took charge of an investiconceived the schemes that his lieutenants gation, traced them back, the trail leading brought to fruition. Lupo, about ten into Little Sicily again. Pursuing his years younger, complemented Morello. researches under cover, in an effort to He was urbane and affable, a polished find the counterfeiting plant, he discovered villain who wore rings on both hands, that Giuseppe De Primo, a grocer in Little used pomade on his hair, and gave off the Sicily and a friend of Morello and Lupo odors of an East Side perfumery shop. -- who had just begun criminal operations He was clever enough to establish a whole together - was importing a larger amount sale grocery in New York and fail fraud- of olive oil than his business seemed to call ulently for $100,000 incidentally to his for. The clue now led to the Custom transactions with Morello.

House. Under the tariff law olive oil In 1899, Morello's existence was offici- may come into the United States by ally brought to the attention of the Secret barrel at a lesser rate than in cans; it is

therefore imported in bulk, the cans being trifling disturbances philosophically. as brought in from Italy empty to be filled part of the day's work. for sale in this country.

“What is a journey more or less to the Investigation of the cans consigned to courts?” Morello once said to a member of De Primo revealed rolls of the "Morris- the Italian squad of the detective bureau town fives.” The counterfeiting plant who had him in custody. “It is a relief was in Naples, and Morello and Lupo from monotony. It might even be amuswere circulating the product that was sent ing if the American pigs of lawyers and to America through De Primo. Morello, judges had a little wit to put me on my Lupo, and De Primo, with a dozen other mettle. But, no! I sleep while they disItalians who had actually passed the pose of my case.” counterfeit money, were arrested and For more than five years, in addition to again there was no evidence to be found other important work of the Secret Seragainst Morello-or Lupo, either. De vice, watch was kept on Morello and Lupo Primo was found guilty of taking part in before Mr. Flynn found it practicable to the conspiracy to defraud, but he refused begin the construction of the trap into to implicate Morello or Lupo, even to which they finally fell. Mr. Flynn was consave himself. The others were equally fident that it was merely a question of loyal. Morello and his partner in crime time before the bandits and their followwent free and the others went to prison. ers would again turn their attention to

The escape of Morello and Lupo from counterfeiting. punishment in the “Morristown fives” Meanwhile Mr. Flynn's reputation as a case was the occasion for the sarcasm of detective was constantly increasing. In the two criminals that was leveled at January of the year before the issue of the Mr. Flynn at the courtroom door, and “Morristown fives," he had been called for the fixing of the detective's determina- to a bank in Grand Street in New York, tion never to relax his energies in their the cashier of which had telephoned him pursuit until he had landed them behind that he was holding a suspicious looking prison bars. From that time until their man who had offered eighty five-pound final arrest in January, 1910, they were Bank of England notes for exchange. continually under the surveillance of Mr. Flynn had approached the bank slowly Secret Service agents, except for brief and cautiously, with the idea that if the periods during which their whereabouts man with the English money was a prowere generally known.

fessional criminal he would doubtless have Nevertheless, for month after month a confederate waiting outside to ascertain and year after year, Black Hand crimes whether fortune or misfortune befell him. - as they were beginning to be called — The detective's forethought had been resmall and great, were traced almost to warded by the sight of a little man with a Morello and Lupo. Their operations ex- red beard on the opposite side of the street tended as far west as Chicago and as far gazing fixedly at the door of the bank. south as New Orleans; but, although The sentinel had disappeared on seeing Mr. scores of their associates and dupes were Flynn looking in his direction, and the convicted and sentenced to long terms in detective had arrested the man in the bank prison and even to the electric chair, the who had asked for exchange for the eighty “men higher up” could not be reached. notes, and who had declared that he had Neither Morello nor Lupo knew that Mr. found them in a wallet in the street. Mr. Flynn was keeping track of their move Flynn had been unable to find the redments during the long period that they bearded little man, but he had made a let counterfeit money alone, and for years mental photograph of him. The fivethey directed criminal operations under pound notes were as perfect counterfeits the eyes of the local and Federal police as the officers of the Bank of England had agents. To be sure, they were arrested ever seen, the celebrated watermark hayfrequently; but, believing themselves to ing been copied almost exactly. be secure from conviction, they took such I n the fall of the same year, when John

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