The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-12-04
A GIGANTIC LAND SWINDLE
THOUSANDS OF PooRPEoPLgRo ROBBED
Fredericksen s. Co. Gave the Poor Worthless
Deeds and the Rich Worthless Mort
cages, Impartial Despoiling Each
Fully n Million stolen.

CHICAGO, Nov. 26.-It is now said the fraud
ulent transactions of Fredericksen & Co. of
this city will reach 81 100000. Their plan was
to give mortgages on property to which they
had no title. They have been doing big bust
ness in western railroad lands, mostly selling
small parcels to immigrants and poor people
on the installment plan. When partly paid,
Fredericksen e. Co. would give deed taking
mortgage to secure deferred payments. These
mortgages were sold, or used as collateral for
loans Ex-Gov. Rice and other Wisconsin cap
italists were large buyers. Many of these mort
cages are worthless. Cashier Bidgood, who is
under arrest, says the business amounted to
$1,000 acres a year. T. G. Cowie, Gov. Rice's
son-ln-law, says Rice is out 100000;
says Fredericksen 81 Co. got up
fraudulent mortgages, gave men 50 to
sign them and then borrow money on them.
They gave mortgages on Dakota, Minnesota,
and other Northwestern laSIs, and hundreds
of Chicago people who have thought they were
buying lands find their deeds worthless.
Among the capitalists swindled are Gov Rice,
Rudolph Nunemaker, cashier Merchants Ma
tional bank, Milwaukee; Messrs. Kendrick
and Rice of Milwaukee, and S. w. Rawson,
the Chicago banker shot by his stepson. Eight
or ten eastern capitalists are in for about $780,
600. and Z. G. Comstock of Milwaukee $4,000.
Mr.. Cowie says a prominent Milwaukeean
aided the Fredericksens by giving them q
good recommendation.
Cashier Bidgood was held in $4,000 bonds
for examination Saturday. He claimed that
his connection with the Fredericksens was
purely clerical, and that he knows nothing Of
their business. Mr.. Cowie said this afternoon
he would follow the Frederieksens to the end of
the world. He says 200 Chicago servant girls
have been swindled out of from $50 to 800 each
and that the swindlers got 100000 at least. The
Fredericksens had no money or property, and
Cowie expects 10 prove that the Milwaukee
man at the head of the whole business.
The scheme of the conspirators was a simple
one. Fredericksen mad plats of farm lands in
Dakota and ali parts of the Northwest, and by
picking out a suitable piece, description
would be filled out on blank mortgage and
sent to the clerk of the county. wherein the
land lay. No abstract of title is required by
Minnesota law in recording mortgages, and the
mortgage bearing all the marks of a genuine
document, similar to those held in great num-
bers against farmers, was soon back in the
hands of the sharpers. Then it was easily dis
posed of to investors, unless the people to
whom it was offered demanded complete alb
stract, and this very rarely occurred.
The Chicago loan and trust company, f. G..
SouthwOrth, the Joliet steel man and the Fl
Dearborn bank are heavy losers. The re-
ceiver of the Frederieksens resigned to-day,
saying there was absolutely nothing to receive
Gov. Rice arrived tonight. He says he is out
$4,000 and that c. ID. Kendrick, Milwaukee
real estate man, was so badly beaten that he
had to assign. He says thousands of farmers
in Kansas and Iowa who had supposed they
were buying lands have been swindled. He
says the entire force of ten men in Frederick
sens Office were in the conspiracy and besides
the swindler had seventy-fve men outside to
sign mortgages for him, all of whom will be ar
rested