Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-10-15
WASHBURN'S SWINDLE.
That Celebrated Failure Which Left
Him Three Hundred Thou
sand Dollars.
A DENIAL THAT DON'T DENY.
How the Assignees Managed the Game
and John Martin Raked
En- In.
A GAME WITH SIX PARTNERS.
In Which Washburn's $4,000 Note
Figured at Sixty-fve Cents on
the Dollar.
A GAME WITH SIX PARTNERS.
ANY ONE COULD GO TO EUROPE.
Who Steals His Pine, Uses the Little
Joker, and Scoops His Creditors by
the Hundred Thousand.

A few days ago the GLOBE published the
following sslittle joker:''
To the Editor of the Globe
MINNEAPOLIS, Oct. 9.-In yesterdays issue
You stated some facts about W. D. Washburn's
bankrupt swindle, and beg leave to state that
81. Leighton, Minneapolis, e. d. was creditor
of said estate for about 81, 900, and got only
$4,000 for his claim. or nearly so per cent
Yours truly, JACK COLLINS.
The following reply to the above appeared
in yesterdays GLOBE:
MINNEAPOLIS, Mlnn., Oct. IL, 1878.
Editor st. Paul Globe.
DEAR SIR: The statement made in your paper
this morning, over the signature of Jack
Collins" that at the time of his assignment
W. d. Washburn owed me $4,000 of which l
got only $4,000. is absolutely false. Mr. Wash
burn did not at that time owe me one cent. and
never lost one cent by him at any other time.
Please make this correction as plain as you
have the false accusation. Yours,
(Sgned) HERMAN LEIGHTON
The Minneapolis Tribune last evening was
in such frenzy over this little matter that
it announces that the reply of Mr.. Leighton
had not appeared in the GLOBE, though it
had already been published, and was inserted
within few hours after its receipt. We were
confident that there was something concealed
on Leighton's part but in our desire to do
prompt justice to Mr.. Washburn we did not
delay its publication moment and we re-
greet that it should have escaped the close
observation of the distinguished editor of
the Tribune.
COINCIDENCE.
Before proceeding to the merits of the
swindle the GLOBE wishes to call attention
to coincidence. On the 9th inst, the
GLOBE received communication relative to
Washbnrn's failure, signed by w.
w. Eastman, John Martin and
n. T. Wells, the assignees who
settled up the failure. The body of the
communication was in a bold business hand,
written on heavy paper, and the signatures
were made by the respective parties named.
On the 18th the GLOBE received the letter.
purporting to come from Mr.. Leighton.
which is given above. This letter is in the
identical handwriting of that used in the
assignee epistle. The paper, ink, &C., is ex-
actly the same and, as in the other case the
signature is the only thing different from
the body of the letter. The letter is written
in ink and the signature in pencil, showing
that the letter was prepared and taken to him
to sign. It is evident that neither epistle
was spontaneous, and both probably came
from Washburn's headquarters. The pen
manship very closely resembles that of
Charles Washington johnson, Mr.. Wash
burns secretary and man Friday. 1t is evil
dent that Washburn has started literary
bureau to prepare defenses of himself which
he sends around to secure signers.
THE TRUE INwARDNEss
Mr.. Leighton's letter of denial is not all it
seems, and is, to draw it mild, a substantial
untruth Previous to Washburn's failure
there was firm of SIX partners, divided into
| two triplets. That is, John Martin Zone of
Washburn's assignees), Ed. Libbey and j. B.
GilGllan comprised one wing of the firm,
and 81. Leighton, A. Leighton and VIM.
| Wakefield the other wing. Martin and Gil
| fllan furnished the capital, and the others
did the chief portion of the work,
and when Washburn failed he
owed the partners $4,000. While that was
the actual situation only one of the six had
a legal claim and that was John Martin-he
having taken Washburn's note to himself in
dividually for the $4,000 due the partners.
Hence Mr.. Leighton's prepared statement
that WasLburn did not owe him cent is a
legal truth and a practical lie.
| And now comes in the tlittle ioker,''
which is worse than the 'brass kettle" as
cheat. Gilfllan buys in the $4,000
note held by Martin for sixty
the four partners, other than Gilfllan and
Martin, took the sixty-fve cents and lost the
remainder of their claim. Martin and Gil
fiIlan then put in the note at it's face and
took pine land therefor, and now Martin
comes in and certifes that everything was
honorable in the failure, and Leighton Is IN
duced to sign statement whose only basis
for truth lies in the technically We have ex-
planned.
This little transaction simply shows how
Washburn, by collision with some creditors,
wronged others, and how the assignees
worked in claims at from fifty to sixty five
cents on the dollar, making creditors believe
that was all they could realize. How many
claims the assignees had an interest in and
divided the discount with Washburn NAV
never be known, but this transaction of Mar.
tins shows great possibilities in that direc-
ton.
It is not surprising that Washburn should
have three hundred thousand dollars remain
ing after such settlement, with which ts
go to Europe, and buy nomination ane
election to Congress. If the assignees, who 81
: valiantly rush to the front lin Chawles Wash
]; ington's hand writing), viii write histor.
+ of that failure and its settlement, the GLoBl
J, promises to print it. The public may thel
Is learn where some of the money came from
T which is now being used as corruption
fund sby the corrupt Bill Washburn.