The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1885-09-16
A GROWING STEAL.
INDIANA TOWNSHIP TRUSTEE FRAUDS
AND THEIR RESULTS.
Over Half a Million Believed to Have
Been Stolen--A Couple of Victimized
Banks Go UDder-A Ques-
tion of Moment.

CINCINNATI, Ohio, Sept. l6.-The En-
quirer's indianapolis special says: The re-
turns are coming in slowly from tho town
ship order swindIe, but they are sufficient
TO indicate that it has been gen.
orally practiced all over the state,
and that its aggregate amount will
certainly reach $GO0,000, and may
greatly exceed it, An attorney who is i'll
vestigatiug the fraud reports that Davis X
Co, of Chicago, who are implicated in it.
are not altogether unknown here. lu lSSo
Mr.. Davis lived in indianapolis, being a
partner in the business college of Granger
s. Davis, AMI he subsequently re-
moved to Chicago, where he went
into the school furniture business, and
recently he wrote TO relative that
be had made 800, 900 in the last year 1t
was he and Frank Pollard who made the
heavy deal in the orders at Washington
City, Davis, it is said, offering Sl0O,OOO OF
it at one time there. A gentleman from
Greensburg, who has known Pollard for
years, states that he saw him in Chicago
three weeks ago, and he then had a valiSe
full of money and United States bonds,
which he doubtless took with him to
Canada.
The legal status of the orders is as yet un-
determined, and opinions are very greatly
at variance about them. A number of
parties who have purchased them are pre-
pairing to bring suit ON the official bonds of
the trustees, claiming that if the warrants
| are illegal the sureties are responsible for
them to the extent Of their bonds, and If
they are valid the townships will have
4 a .f.N1a
among the best lawyers here Is
that payment can be enforced only when
the bonds were issued in payment. for
supplies actually bought and delivered at
reasonable prices though they all agree
that there Is absolutely no limit on the
| trustees power to buy as much stuff as he
| pleases and issue warrants for its payment,
and that these are valid obligations. John
| NJ. Butler, however, is inclined to think
that the trustees certificate that the sup
plies were actually bought is sufficient
MADISON, Ind, Sept. l5.-If the fraudu-
lent warrants of the festive trustees are
held to be legal obligations Of the town
ships by the courts, many townships will
he financially embarrassed for years L
they are declared not binding upon the
townships, capitalists and banks will suffer
These orders were considered a profitable
investment, as they could generally be oh
tainsd at a discount and bore per cent in
terest
CHICAGO Sept l6.-The Inter Oceans
Indianapolis special says: There is mucl
comment in financial circles here over til,
failure of the Jennings county bank Of Yer.
non, Ind, which occurred Monday, on sccoun
of having made large purchases of fraudu
lent township orders, the amount bein
variously stated from $4,000 to $50,
O00 and numerous other failures o
banks and private individuals are al
ticipated. A private dispatch receive
announces that L. C. Fenton, trustee O
Adams township Warren county, is miss
ing, and has probably gone to Canada, an
that Trustee Clawson, of Warren township
same county, is at London, Ont. The de
velopments of the last three days have showi
that Davies county orders in the amount
| no h.Alntx