interesting phases of the abuses to which the ignorant laborer is a victim. These may be termed Schemes to Defraud Labor, and include a number of clever schemes which have for their object the defrauding of labor under the guise of increasing their earning power, teaching them trades and giving them employment. The most vicious of these schemes was encountered in San Francisco in May, 1912, and a recital of some of the facts of the case will give a fair idea of some of the practices the unprotected laborer is made a victim of. On May 1, 1912, our attention was called to a Greek who was hiring men to perform common labor for an electric light and power company at the rate of $2.00 per day, whereas the prevailing rate of wages at that time for that class of labor was $1.75. Circulars had been printed in the Greek language and distributed widely, and hundreds of Greek laborers were leaving their work on railroad construction, where they were only receiving $1.75 per day, to apply for this new work. We obtained the service of a Greek laborer and gave him $2.50 with which to apply for a position. When he handed the fee to the Greek agent, our special agent stepped in and demanded that the Greek agent show his license to conduct an employment agency. He produced a small typewritten sheet which he claimed was his license. This sheet bore a memorandum of the number of a license that had expired on March 31st of that year. When questioned he stated that he had paid $60.00 for the license and then refused to make any further admissions. He was immediately placed under arrest and charged with conducting an employment agency without obtaining a license. We, however, realized at this time that there was something deeper involved in this case, and requested the court to raise the bail high enough so that we could hold this Greek agent and get at the real culprits. We first ascertained that there was no such company in existence as the one the men were being hired for, and there was no work whatever for them. When we confronted the Greek agent with these facts, he told us of all his dealings in the matter and it developed that he, himself, had been made a victim and had parted with over $500.

We then obtained warrants for the arrests of the two men who had concocted the scheme. These two men were very prominent in San Francisco, and every influence, both political and personal, was brought to bear in their behalf, but to no avail. The Bureau procured the services of the Hon. D. M. Duffy as special prosecutor, and after a protracted trail in the police courts they were held for trial in the Superior Court.

The trial disclosed that these two men had drawn up a fictitious contract with a fictitious corporation in which they were authorized to employ 3,000 Greek laborers. They showed this contract to the Greek agent and instructed him to go out and hire the men. The Greek agent was told to collect $2.50 from each man he hired and turn the money over to the two defendants. In consideration for his work he was to receive $500 and the job of general foreman over the laborers. The Greek agent knew that a license was necessary and told the defendants that

he must have one. The defendants agreed to obtain one for him and he gave them $60 for that purpose. In place of securing a license for him they went to an empty store that had formerly been an employment agency and copied the number and name of the license and handed him this memorandum in lieu of a license.

On November 20, 1912, the defendants were found guilty of obtaining money under false pretenses and sentenced to three years imprisonment in the state penitentiary.

Fortunately this scheme had been nipped in the bud, but even though it had only been in operation one day, 148 laborers had been fleeced out of $2.50 each. If the Bureau had not taken such immediate action, 3,000 laborers would have been muleted of $2.50 each, or a total of $7,500, and not alone this, but would have quit their jobs and rushed to San Francisco to get the increased pay that was offered.

Another of these schemes was what is known as cigar-making schools. Two of these institutions were thriving in San Francisco until the Bureau took a hand, and after a long campaign succeeded in putting them out of business. These so-called cigar-making schools were nothing more than schemes to fleece ignorant laborers-for the most part foreigners who thought that they could improve their conditions by learning a trade. Attractive advertisements were placed in the newspapers and when the applicant applied he was told that he would have to pay $25.00 deposit to cover the cost of the material he consumed in learning, and that in a very short space of time he would be employed by the factory-which was always a part of the school-at attractive wages. The following is a copy of the contract which he was given upon payment of $25.00:

This Contract, made the nine hundred and

day of

-"

in the year one thousand

Between the GOLDEN WEST CIGAR COMPANY of the city and county of San Francisco, State of California, party of the first part, and__ the party of the second part.

Witnesseth: that the party of the first part, in consideration of the covenants on the part of the party of the second part, hereinafter contained, hereby covenants with the party of the second part, that the party of the first part will in consideration of the sum of Twenty-five [25.00] Dollars to him in hand paid, by the said party of the second part, the party of the first part will teach the party of the second part the business of Cigar Making, including stripping, booking, packing, ringing, selecting colors, mold, hand and Spanish work.

And the party of the second part in consideration of the covenants on the part of the party of the first part hereinafter contained, agrees to and with the party of the first part that the party of the second part shall receive the first one thousand cigars he makes, for his time and labor and after the first 1000 cigars is made by the second party, he will be paid a certain wage per thousand, to be hereafter agreed upon.

And for the true and faithful performance of all and every of these covenants the parties to these presents bind themselves, each unto the other.

It is further agreed that in case the party of the second part fails to fulfill his part of the contract, he shall be entitled to the cigars he makes, nothing further. It is further stipulated and agreed that the party of the second part will obey the factory rules of the first party.

In Witness Whereof, the parties have hereunto set their hands the day and year first above written.

Signed and Delivered in the Presence of

GOLDEN WEST CIGAR COMPANY.

This contract upon its face is quite plausible, but the persons operating these cigar factories figure that the applicant will become disgusted in a few days and quit, and under the terms of the contract is entitled only to the cigars that he has made, which, by the way, are made of such material that they are unfit to smoke. If the applicant persists in remaining and completes his first 1,000 cigars, he is either offered a ridiculously low wage or some excuse is found for discharging him.

A most novel scheme encountered was one that might be called a form of continuous agency. A case was reported to us by the local police department upon a report having been made by a young man who had parted with $20.00. According to the terms of the contract entered into, this young man was to become a "manager" for the company for the period of one year at a fixed salary, but the salary was not to start until he had secured at least six agents. These agents were obliged to pay a deposit of $5.00, of which the manager was to receive $2.50 and the company $2.50. The company furnished these agents with a sample case of pot-metal knives and scissors and cheap literature, all of which was practically unsalable. If the manager failed to comply with any of the provisions of the contract, he would forfeit his $20.00 and this amount would "be retained by said company as pay for instructions furnished."

The officers of this Bureau located the official representative of the company, and made him return the $20.00 he had received. We then took him before the district attorney and he was informed that he would not be permitted to operate in this State, even though the company which he was representing was a very large and wealthy one.

A rather peculiar case came to our attention and involved one of the large casualty companies. It appeared that shortly after the passage of the Roseberry Employers' Liability Act, the various casualty companies became very active in soliciting business in the mining districts, as most of the mining companies had refused to come under the provisions of the act. The mining companies seemed to look favorably upon the work of these casualty companies, in getting the miners to take out insurance against death, accident and sickness. During a visit of Mr. H. A. Scheel to Sutter Creek and vicinity, where he was making an investigation into a mine disaster, several miners appealed to him for relief from what they considered an unjust imposition by an insurance company. It developed that an agent of the company had come to the mine and had agreed to write a policy which provided for the payment of $400 in event of death, or $1.85 per day during sickness, and the appointment of a resident physician for the benefit of the policy holders. The amount to be paid by the miners was $9.00 for a period of six months, which amount was deducted from their wages.

The policies which these miners received were entirely at variance with the statements made by the company's agent. In the first place it provided only for $100.00 in event of death and $35.00 per month.

during sickness, and instead of being for six months was only for two months.

This Bureau immediately took up the matter with the State Insurance Commissioner, and on February 13, 1912, we made a demand upon the company for the return of $9.00 for each of the thirty-two miners who had been defrauded. The company at first agreed to make this refund, but requested time to make an investigation. After a month had elapsed, we again made a demand upon them and they stated that the matter was being adjusted. In the mean time we had learned that nothing had been done by the company. On April 8, 1912, we cited the local representative of the insurance company, and to our surprise he appeared with counsel and informed us that his company did not have to refund the money collected, as the policies had expired on April 1, 1912, and as they had run for the period of two months, the time which premium covered, the company had earned the premium on account of its liability during that time. We informed the local agent and his counsel that we did not propose to sit idly by and tolerate such sharp practice, and we again took up the matter with the Hon. E. C. Cooper, Insurance Commissioner. Mr. Cooper instructed the company that if the money was not returned he would order an investigation of the books of the company and in the mean time revoke their license in the State of California. The local representative of the company tried to bring pressure to bear, and even went so far as to call on the Governor of this State, where they received little comfort. The company then sent thirty-two checks for $9.00 each to the Insurance Commissioner, who, in turn, handed them over to this Bureau for distribution to the claimants.

One of the most prevalent forms of defrauding laborers of their wages occurs in the so-called "wild cat corporations." These corporations, as a rule, maintain elaborate offices in the larger cities, and only pay the office force a samll part of the wages agreed upon, claiming that they are hard pressed for money and that they will soon be able to pay them. They pursue the same policy at their mines, oil wells, or other enterprises by furnishing the crew with just enough money for subsistence and informing them that the money for their wages will be forthcoming at a very early date. After a few months these wild cat companies evaporate, so to speak, and the employees are left with two to three months wages due them. As a rule, when we investigate these cases, we find a dummy board of directors or every one trying to shift the responsibility.

We have prepared the following table for the purpose of showing the occupations of the persons filing wage claims in the Bureau and also the industries in which most of the violations of the payment of wage law occur. It will be noted that the claims of those in the unskilled and unorganized branches of labor predominate. The claims of common laborers constitute 21.3 per cent, or over one fifth of all the claims filed

by men, while those engaged in general housework make up 23.7 per cent of all the claims filed by women.

In the industries against which claims were filed, that of construction and general contracting work stands out the most prominent, with a total of 397, or 20.9 per cent of all the claims filed, while restaurants come next with 227 claims, or 11.6 per cent; then hotels, apartment and boarding houses with 178 claims, or 9.4 per cent, and private places or homes with 149 claims, or 7.8 per cent of the total. This last item is interesting and may be accounted for by reason of the fact that in many instances women will discharge their servants in a fit of anger and will refuse to pay them the wages earned.