Soapy Smith - The Prize Package Soap Racket

The Prize Package Soap Racket

Some time in the late 1870s or early 1880s, Smith began duping entire crowds with a ploy the Denver newspapers dubbed "The prize soap racket".

Smith would open his "tripe and keister" (display case on a tripod) on a busy street corner. Piling ordinary soap cakes onto the keister top, he began expounding on their wonders. As he spoke to the growing crowd of curious onlookers, he would pull out his wallet and begin wrapping paper money, ranging from one dollar up to one hundred dollars, around a select few of the bars. He then finished each bar by wrapping plain paper around it to hide the money.

He mixed the money-wrapped packages in with wrapped bars containing no money. He then sold the soap to the crowd for one dollar a cake. A shill planted in the crowd would buy a bar, tear it open, and loudly proclaim that he had won some money, waving it around for all to see. This performance had the desired effect of enticing the sale of the packages. More often than not, victims bought several bars before the sale was completed. Midway through the sale, Smith would announce that the hundred-dollar bill yet remained in the pile, unpurchased. He then would auction off the remaining soap bars to the highest bidders.

Through manipulation and sleight-of-hand, he hid the cakes of soap wrapped with money and replaced them with packages holding no cash. The only money "won" went to shills, members of the gang planted in the crowd pretending to win in order to increase sales.

Smith quickly became known as "Soapy Smith" all across the western United States. He used this swindle for twenty years with great success. The soap sell, along with other scams, helped finance Soapy's criminal operations by paying graft to police, judges, and politicians. He was able to build three major criminal empires: the first in Denver, Colorado (1886–1895); the second in Creede, Colorado (1892); and the third in Skagway, Alaska (1897–1898).