National Republican., 1877-12-25
WORTHLESS NOTES.
the WARRINGTON REAL ESTATE
L0ANAND TRUST COMPANY.

LOdN AND TRUST COhFANT
An Exposure Of Their Altered Fraudulent
Business Made In Philadelphia by the Ar
rest Of an Extensive Operator In Their
Paper.
In connection with an exposure Of the
transactions of bond swindlcr. Doctor" David
Newcomb recently arrested In Philadelphia the
Times Of that city, after speaking Of organized
swindlers, gives the following description Of the
operations Of the Washington Real Estate Loan
and Trust Company, with whose notes, alleged TO
be worthless, Doctor Newcomb principally ops-
rated:
HOW THE BUSINESS Is TRANSACTED.
The Washington Real Estate Loan and Trust
Company, which has been brought slightly to pub
ils auen,ion by recent notice Of apparently petty
have paid.up capital OF 100000, and was organ.
ked In the District Of Columbia. II works In many
devious Ways in fact IN any way that promise. %
enterprise. But, as its name imports iu principal
operations ore In real estate.
IL Is not the idea TO either buy or loan money
require cash or good security and that Is exactly
what the company do not propose to do. simply be.
cause the tlOOOOO capital Is myth and would not
stand examination; but II person has tract Of
land, and tho company prefers TO deal In outside or
Mildlands, Of say one hundred thousand acres In
Virginia or West Virginia lands the title of which,
customer For example, this person has had The
land In the market for years at twenty cents an
ncre without being nblo TO find q purchaser. He
the Washington Rcal. Estate Loan and Trust Com.
psay OILERS Itself as the easiest safest and most ex;
their hrst move Is 10 send their appraisers TO exam.
Inc the land and title, asking for this service from
The appraiser, as instructed. returns with the re.
port that everything Is all correct and the land
worth y an acre; The loan and trust company. Of
AnV,Fa Ia L..
prepared to Negotiate with The owner q % he land
acre, Che nominal value would be 10000 The
direction Is perfectly willing 10 execute a mort.
gage OH the land at half Its appraised value and
the scheme Of the confidence game Is unfodcd to
his approval he %as bes o years %
to realize a few dollars on property which was
never clearly his. The plan OF operation is this
to the landowner, and now co.swindier, their
notes, In the shape Of bonds to the amount OF
slhoQcO. or onehalf OF the appraised yane, predi.
Gated on mortgage made to them as trustees,
WHAT THE NOTES PROMISE.
These notes or bonds ars somewhat larger than
| the ordinary United States notes. aud are we'll en-.
| stayed aad printed in green Ink, and bear the In
upon property. which IS otherwise nnincnmbered
and deposited with the treasurer Of the Real Estate
Loan aud Trust Company of Washington, d. C..
signed John b. Archer, president; J. C. McKelden
| a prolnise IS also on them to redeem the note.
three years amer date with seven per cent interest
payable annually at the Second National Bank o
washington, d. c.. signed 6. s. Bellows, trustee
| q. W. Ballock, secretary.
They arc issued in any amounts required but
possession, the owner goes tho street In scarci
of purchaser, and IL particularly impecunious h,
| hypothccateS them for whateves he can get sub
ject to the approval Of the loan and trust company
and division OF the tpois, whatever they may be
Il made with the latter as previously agreed upon
or else the owner Of the land may be permitted ;,
dispose of the bonds at will, and the loan and trus
company take their chances for profits by dispose
OF the mortgage The owner then goes his way
never caring to hear anything more of the notes .
his mortgnged property either, while the loan ant
trust company walt for the next customer.
| When the interest on the notes becomes due tn,
holder present himselrf for his seven per cent Bear
Ing interest annually, the notes may have passet
through dozen hands from the date OF theif issut
up 10 this time.
THE HOLDER HEARS A FAIRY TALE.
He Is very politely but firmly informed by tn
loan and trust company that they have never re
| ccived any interest on the mortgage executed b.
them with the owner of the property, and are vi
terly unable TO pay the interest on the notes, an
contend that they greater sufferers In the trans
| action than the holder Of the note. They expaii
mortaSe @ DDt Ut that i viii be yeas before Y tRsS conf m
| realize upon the advances tho company had made
The holder calls and calls again without obtainin
any satisfaction, until finally lie becomes tired
all he can do is to resell his notes II he can or awa
the distant settlement with the loan and trust com
pany.
Another mode OF disposing Of the notes is to plac
quantity OF them in the hands Of one Of the man
ndroit swinders who swarm all over the country
and they sell M % bargain % 9r exchange with them !
turn share OF the profits TO the loan and tru,
company
They also can be purchased outright, and 1t
susceptible of proof that they have been offered 1
immense sums for 81 so upon face value Of u 0C
In this city within n short time BY firms which DEF
In these and other worthless securities, and Il
claimed that II the Insurance commissioner of III
! state would examine closely the accounts OF man
OF tho insurance companies these bonds would
found entered as assets and rated at their iaC
value, when. In reality, they are not wCrth the pl
per they are printed upon.
NEwcoMBs OPERATIONS
Newcomb new under arrest in Philadelphia
| claims TO be q SOutherner, hailing from RIChniOn
Va. Information has been obtained to show thi
1 he has negotiated considerable amount NJ n
, notes Of the Washington Real Estate Compan
suranGe Company Of Wilmington, Del, ho su
gcsted that tbs unstable Missouri securities Of ii
{ company be exchanged for the Washington Re-
securities and demanded ready sale at ninety ii,
! cents on the dollar. Mr.. Atwood, the form,
, president Of the company. wa, induced % tab
/. after trying 10 negotiate them, was finally gla
10 dispose OF seven OF tho 500 not,
he snS sss dS %ee
clothing, railroad tickets, &c. In New York b
gave ML J. Baker, ship broker, No. l6 Water stree
turning TO Philadelphia he gave David Brliunaz
an officer OF the United States secret service thre
! of the 500 notes In payment for n saloon.
The detectives hnd tho Doctor arrested all
! lodged In the Moyamensing prison. from which d
has been released Oh bail. Newcomb Is wanted 1
New TSs BY RGsT SnS in ~ tbr By
ance Company,
Many Of these notes are held by residents OF IN
= District, who have found 70 their sorrow that the
q are utterly worthless In the market. A gentlems
d not long since took one To a Washington bank. All
: was Informed that the bank would not give q col
Q for cart-load OF them The notes cannot be n
gotlated In this market.