The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1885-07-01
"SMITH WAS ADANDY.'
A SHORT STATEMENT OF REASONS
FOR SAYING so.
How He Did q Big Business In Omaha
and How He Left for Where the
woodbine TwIneth, with
the Cash.

OMAHA, Neb, July 1.-The most sensa-
tional failure ever known in Omaha was
that of Loyal l. Smith, who came here
from Chicago and opened dry goods store
Nov. g. and left the city Sunday at s o'clock
in the forenoon, going south over the Kan
sas City road, taking his chief
clerk bookkeeper. cashier and two
other employees with him 1t is believed
now that the party headed for Mexico No
body knows how much money Smith took
away, but it is generally estimated at $780,.
900 at least-perhaps double that.
Smith, who was formerly on the Chicago
board Of trade, came here from Chicago,
said he never was in the dry goods
business, went to New York to buy
goods, and made these representations to
H. B. Clafiin g. Co. He selected the goods,
ordered them shipped, and came home.
Clafin refused to ship the goods, finding
Smiths statement unsatisfactory. Smith
then went to Chicago and bought goods. He
returned here and opened store, made low
prices, and soon was doing a big business.
enlarged the store to double the former
size, ran excursions over the railroads
from central Iowa and eastern Nebraska,
and had band of music every Saturday
| night in the store. frequently he gave his
clerks $25 and told them to go out and
paint the town red, not forgetting to ad-
vertise him. These unusual business meth
DDS completely paralyzed the retail dry
goods trade of the city and compelled the old
houses either to do light business or join
him in siashing prices One great sale he
made was sixteen yards of lawn for ! cent,
which cost over cents per yard. He would
take his entire force of employees to the
| theatre as means of advertising himself.
He carpeted the sidewalk in front of his
| store, and had colored liveried
driver for his delivery wagon He
cut a great swell generally. On one
occasion, on an excursion, he brought into
Omaha at least 900 persons on train from
Lincoln and intermediate points This drew
much Of the Omaha custom in addition that
day, and people fairly fought their way into
the store and up to the counter. His sales
were so rapid, and money came in so fast,
that the cashier and assistants didn't pretend
to arrange it, but piled it up on a table be-
hind the cashiers desk and counted it ur
into thousands of dollars after the store
closed. Smith also showed himself to be a
stiff poker player during the eight months
he has lived here, and also has been dab
bling instantly and heavily in grain
options at Chicago, generally on the wrong
side of the market He claimed to have
lost $40, 900 in two weeks.
The result of all this was that his cred.
itors, one of whom was Farwell, of Chicago
began to want some money, and the banks
began to scent danger. He then settled hi
affairs with the banks very much to his owl
satisfaction, as it is said he stuck them fol
about 81, 900 In overdrafts.
Saturday night he paid all his employee
off, and it is said he paid some week in adj
vance. Sunday morning he paid a bill a
the Paxton hotel, ssnt his trunks to the de
pot, and skipped out His cashier did not &C
until the afternoon One travelling man wht
hadn't been paid, met the cashier at ths
Millard hotel during the afternoon AMI
forced payment of the salary due him, witt
revolver at the cashiers head. Monday
morning the store was opened and a maj
named II. Lowey, who came here few
days ago from Chicago, claimed t.
be the proprietor. He said he paiS
Smith $50, 900 cash and gave him
note for six months for 5000 At
torneys Of foreign and local creditor
fiocked in fast, and at / o'clock in the fore
noon the sheriff closed the store. Lowe,
Z claims to be bona fide purchaser, but &C
r knowledges that no inventory had bee
! taken, He bought the place in lump
. 1t is generally believed here that tn
, sale was fraudulent Claims wer
coming in by telegraph from a
over the United States, one legal firm re
ceiving claims for $4,000. Every effor
! will be made to capture Smith. He playe
his game slick and it will be hard to max
any criminal charge stick against aim~
G is believed he had $50, 900 in cash with hin
1 The popular verdict is that "he was
, | dandy