Pay for a Job That Wasn't There: Seattle's Employment-Agency Scam
A city council committee heard workers describe paying fees to G.W. Crane's employment office and arriving to find no jobs, with agents accused of splitting fees with contractors.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
THE LABOR BUREAUS.
The committee of the house of delegates on police, license and revenue, composed of F.W. Goodhue, F.H. Hard and William Voight, held a public investigation of charges of fraud against private employment agents in the council chamber yesterday afternoon. It will present a report to the house on Monday evening.
A number of witnesses were examined by the members without the intervention of attorneys and without the formality of an oath. The agents against whom they testified were allowed to answer them, ask a few questions and put in evidence in defense. The lobby was crowded with workingmen and agents, and the proceedings were watched by Mayor Phelps, Delegate Gleason and Labor Commissioner John Lamb. Attorney M.G. Winestock was present to summon witnesses. Harold Preston claimed the right to put questions on behalf of G.W. Crane, and a rather warm exchange followed. The chairman said it was not proposed to have any cross-examination and no attorneys would be allowed to act. Mr. Preston protested vehemently, as did his client, but ultimately neither attorney took part except that Mr. Preston advised Mr. Crane at times. Mr. Lamb sat beside Mr. Goodhue and suggested questions. Mr. Crane wanted a copy of the testimony, but this too was refused.
Then began the hearing of charges against G.W. Crane. Mrs. M.A. Lucas told how Crane sent her to Sheriff Woolery's house, first charging her a fee of $1, with the understanding that if the place did not suit the money would be returned. Finding the people at the sheriff's house sick, she did not want to work, and returned to Crane, who declined to refund the fee, saying it would not be business.
Leo Goss testified that two years last month he was sent from Tacoma by an employment agency to Seattle, paying $2 and thinking he was coming direct to an employer, but found the direction was to Crane's office. He went next morning and found no job. He demanded his money back, and Crane's clerk told him he must go to Tacoma for it, though the clerk said Crane would receive half of the fee. He waited around for a week and got nothing.
H.C. Winslow testified that he paid Crane $2 for a job at the Port Gamble sawmill, where he was to get a month's work and board. Four men went together and presented their receipts to Mr. Conway, who handed them back and said: 'I have no work for you. I told Crane I wanted four men and he has sent sixteen here.' Winslow said: 'Well, what kind of a country is this? Here I am 2,000 miles from home with only 25 cents in the world.' Conway told him to go to the cook house and get some dinner. He hung around for a week or two and finally got a job in the mill, but not the job he paid for. When he asked Crane for the fee, Crane said: 'That is not the way I do business.' Winslow also told of reports that agents were dividing fees with contractors, and of a decoy letter sent to Crane from Everett that elicited a reply accepting the proposition. He offered to produce the original letter.
W.C. Duncan, of 1907 Fifth street, testified that Lottie Stewart, whom he knew in Oregon, came here looking for work and paid Crane $1.50 to take care of two children for a man who was going to the World's Fair. She went to see him and he put her off, but called to see her several times. Duncan said he learned by overhearing a conversation between the man and Crane's agent that the man wanted only to get married, was not going to the World's Fair, and that Crane had sent eight different girls there. After three weeks the man proposed marriage to her. She demanded her money back, but Crane refused. The man's name was Smith and he lived at the Silver State house.
Burton DeWitt, of 604 Commercial street, testified that about June 1 he was engaged by Mrs. Stewart, of Front and Pike streets, to wash dishes. About an hour after he had begun work Crane brought a man and offered his services at $3 a month less than DeWitt had bargained for. DeWitt came down $5 a month. Shortly afterward he saw a notice at Crane's office saying, 'A cook required in the country.' He asked Crane where it was, and Crane held out his hand and said: 'Two dollars, please.' DeWitt offered to send the money out of his wages, but Crane said he did not do business that way.
F.A. Albrecht testified that in 1890 he was engineer of the Huron Lumber Company and the foreman, who could not read, gave him a letter from Crane offering 5 per cent of the fee to let him furnish all the men needed at the mill. The foreman told him to tear it up and he did. On two occasions men came with notes from Crane when the mill was full-handed. Men were never hired through Crane, but direct at the mill. Last spring he applied to Crane for employment as an engineer. Lawson, his clerk, promised him the next job, but told him two days later he could not have it.
Mrs. D.E. Chandler said she had been employed by Crane for two years and he never did anything wrong; he often gave people their money back. She told another story about Lottie Stewart, saying Smith paid her board at the hotel for two weeks and hired her by the month, but she afterward took another job. David K. Chandler testified that in the winter of 1893 he was employed in Crane's office and never saw anything wrong. One man paid $2 for a job as teamster at Mukilteo, but next morning came back and wanted his money back. He said he could not handle the horses and could not get them up the hills. Crane a few days later gave him his money back.
Crane then told his method of doing business. He said the sheriff telephoned for a nurse girl and he sent Mrs. Lucas out. Mrs. Woolery telephoned that Mrs. Lucas did not suit and asked him to find other work for her. She called a few times and he said she could have other work, but after a few days she came back and demanded her fee back. The hearing closed after two hours, and the committee will report to the house on Monday evening.
“Here I am 2,000 miles from home with only 25 cents in the world.”
Private employment agents charging workers upfront for jobs that did not exist—and splitting fees with contractors—is a 19th-century version of a pay-to-work scam. The hearing shows how easily labor-market middlemen could strand migrant workers; Washington now regulates employment agencies, but gig-economy workers still face fee and misclassification traps.
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