The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-10-03
GEO. W. SPOTTS'S TROUBLE.
His Failure in Business Occasioned
by Specializing in Margins.
His Father-in-Law, Adam Scott, Heavily
Involved by Him-The Character of
Spotts's Recent Operations.

George W. SPOTS. a member of the IndianapO-
lis Board of Trade, and a young man quite we'll
known in business circles, has left the city I'M
der circumstances of a very embarrassing ma
ture, caused by heavy losses in wheat margin
specnlaUlons. Until about six months ago, he
was the proprietor of a grain elevator on Vir-
glnia avenue, and was regarded as a young man
OF extraordinary business qualifications. He be-
gan with a small capital, which had been ac-
cumulated by his own industry and economy,
and for a time seemed to be doing
a very good business. His beginning prom
ised a successful future, and he was
held in high esteem. About eighteen months
ago he was married TO Miss Nellie Scott, daugh-
ter OF Adam Scott, a well-known grain dealer of
this city, and it was regarded as a union mu-
tually fortunate to both parties. Shortly after
wards Mr.. Scott, who had the mos. implicit con-
hdence in the integrity and business qualifica-
tons OF his son-in-law, became the endorser of
Mr.. SPOTS on a note in bank for Sc, 900, which,
it was understood, was capital that could be
used in the latter's business to great advantage.
Other notes were brought to Mr.. Scott by his
son-in-law, from time to time, to all of which he
freely and unhesitatingly gave the value of his
name. These notes, it was supposed, however,
were simply renewals of the original obliga-
tions, with one or TWO exceptions. 1t was ''all
in the family and the customary rules of bust
ness were suspended. Mr.. Scout supposed that
his liability on the account of his s0n-in-law was
about $l2,000 or $4,000. Last March SPOTS
failed IN his business, and Mr.. Scott was almost
paralyzed with astonishment when he vas
called upon to pay S48, 900, which was shown
TO De the amount of his liability on the paper of
his son-1n-law bearing his endorsements. Mr..
Scott found that his confidence had been
abused, and he became more careful in his deal
lngs with Spots, who confessed thai he had lost
the money in margins. ae seemed to
in the remorse over his misfortune, Resolved to
never again speculate. The loss was adjusted
by Mr.. Scott, who assumed charge of the bust
ness and gave Spots an opportunity to regain
his standing by making him manager, In this
capacity he handled little money. lie applied
himself closely TO work, and his conduct during
the first few weeks gave some assurance that he
would overcome his misfortune.
Last week, however, Mr.. Scott discovered that
there was not az much grain in his elevator as
1t was shown had been purchased. An investi-
cation was begun, and it was found that SPOTS
had reported purchases which had never been
delivered. He had given the numbers of cars.
together with the names of the persons from
whom he claimed that he had purchased grain,
and bank checks had been given accordingly
for payment by Mr.. Scott, who suspected moth
ing wrong. because IL was not clear in what way
there could be any swindle, the checks
son from whom the wheat Was
alleged to have been bought. The money OBJ
tanned in this way will amount, Mr.. Scott thinks.
to between $4,000 and $1,000. In the transac-
lions by which the money was obtained, SPOTS
had an ACCOMPLISHING person to whom the
checks were made payable-who, it is said, is a
resident of this city. After the scheme was dis
covered, SPOTS confessed his guilt to his father
in-law, and last Saturday night he left the CITY
for Chicago. A letter received VI sterday from
one of his acquaintance in that city stated that
he had obtained employment and begun work on
Monday.
Mr.. Scott stated to a Journal re-
porter last evening that he had
not yet learned the full extent of the operations
of his son-in-law. He believes that the money
which SPOTS obtained was lost in wheat specu-
lations. "He has acted badly, very badly" MI.
Scott said, in speaking of the matter, land 1
know of no reason why 1 should attempt to
shield him. From his manner, he seemed 30 re-
pent his conduct as much as possible, and went
to Chicago with the hope of obtaining employ
ment there and again getting a start.
He was offered a position there last
spring, when he failed, but remained here, with
the determination, as he then declared, of re-
gaining his business standing"
SPOTS was one of the governors of the Board
of Trade, but having failed to be present at three
successive meetings, without giving any excuse
for his absence, his position was declared vacant,
and Joseph K. Sharp, jr, was elected in his
place.