The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-11-27
B0GUSLAND MORTGAGES.
A CHICAGO FIRM FLEECRs RICH
AND POOR ALIKE.

The Capitalists Loaded Up With the
Mortgages as observation-disclosures
pecting Settlers Given Worthless
Titles to Farm Lands, on Which, in
Several Instances, They Made I'm
proven ents.
CHICAGO, Nov. 26.-F. d. Cowie. son-in-
law of ex-Gov. Rice Of Wisconsin, swore
out warrants yesterday against NJ. C. and
d. M. Frederickssn of Chicago, OF the firm
Of Fredericksen & Co., and W. F. Bidgood,
bookkeeper Of the firm, charging oonspir-
acy. Bidgood is in custody, but the others
evaded arrest. NJ. S. Fredericksen is said
to have gone to Europe, and kilograms were
sent TO the New York police to intercept
him. The firm has been in the hands of
receiver for several weeks. The issue of the
warrants is the latest phase of alleged land
swlndles throughout the northwest, aggre-
eating 100000
NATURE OF THE FRAUD.
1t is said that the amount involved will
reach 81 100000. The charge is basedj on
alleged crooked transactions in giving mort
cages on lands to which the Fredericksens
had no title. These mortgages are said TO
have been pledged as security for loans.
Fredericksen 81 Co. have been doing a large
business In western railroad lands, selling
Tor the most part small tracts of forty or
htty acres, on the installment plan, tue pur-
chasers usually being immigrants or poor
people who wished to invest their earnings
In farms. After a certain number of pay
ments had been made, Fredericksen gave
deeds, mortgages on the land being taken
Tor the unpaid portion of the purchase
money. These mortgages we're then given
as collaterals for loans or sold outright
through the west.
SOME OF THE HEAVY BUYERS.
Among others, Ex-Gov. j. A. Rice of
Wisconsin, r. Nunnenacher, cashier of
the Merchants Exchange Bank of NIL
waukee, and e. G. Comstock, Milwaukee
lawyer, are said TO have been large buyers.
1t Is now claimed that many Of these mort
cages are worthless. When seen at the
police station, Bidgood stated that his CON
nection with the company was purely az
cashier, and he did not see how he could be
implicated in the Frederickson transactions.
The business, he said amounted to 80, 900
acres year, but he could noe say how
much of this. was in mortgages.
T. G. Cowie said he represented the inter
ests of his father-in-law, ex-Gov. Rice, who,
he said, was loser to the extent OF $780,
900 by the alleged fraudulent operations.
HhAOOOLbNI MOhIdAGES.
'The charge we make" he said, 'is that
Fredericksen, Bidgood and d. G. M,
Fredericksen were all concerned in this
conspiracy. They got up the fraudulent
mortgages, went out on tho street and gave
men IS to sign them. Then they went to
capitalists with the mortgages and raised
money on them. They gave mort
cages on land in Minnesota.
Dakota and other parts Of the north
west. There are hundreds of working
people in Chicago who paid in their earn
ings to the Fredericksens, thinking they
were buying land, ana now they find their
deeds worthless. Many Of these mortgages
were placed in Milwaukee. Among the
purchasers are Mr.. Kendrick, Mr.. Bryce
and Rudolph Nunnenacher cashier of the
Merchants Exchange bank of Milwaukee
Stephen w. Rawson, a banker of Chicago,
also had some OF them. but he is not hit for
much" 1t is said that much of this paper
was also sold in Milwaukee.
An afternoon paper says that three cost
ern capitalists contributed 100000 to the
Golfers of Fredericksen g. Co, and e. G.
Comstock, a Milwaukee capitalist, dropped
about $4,000. Mr.. Cowie makes a state
ment in which he intimates that a promi-
icksens by recommending their securities
to his friends.
SIMPLE BUT EFFECTIVE.
The Daily NelUs says "The scheme of
the conspirators was a simple one. Freder-
icksen had plats of farm lands in Dakota
and all parts of the northwest, and by pick
ing out suitable pieces description could
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 the
minnesota In in racorIfnc,
and a mortgage bearing all the marks of
genuine document, similar to those held in
great numbers against farmers, was soon
back in the hands Of the sharpers Then it
was easily disposed of to investors unless
the people to whom it was offered demanded
complete abstract, which, it seemed, very
rarely occurred, although it is astonishing
that some of the shrewdest money men In
Chicago were taken in by the scheme.
REAL OWNERS IGNORANT.
The real owners of the property knew
nothing Of the scheme, Of course, and the
poor fellows who bought and partially paid
for their lands, receiving supposed abstracts
of title, settled upon them and built homes.
put in their seeds and stocked places, only
to be swooped down upon by the real
owners and driven out Thus the rich
holders Of mortgages and the poor occu-
pants of the land were robbed Among
Chicago people and banking concerns
in Chicago who had confidence in
the Fredericksens and are said TO have
invested in mortgages are f. G.. South
worth, the Joliet steel man, who is said to
be one Of the biggest creditors of the COM
pany; s. w. Rawson, who, however, took
the precaution Of perfecting his holdings,
and will lose nothing: the Dearborn Ma
tional bank, which holds nice bundle of
paper mortgages, worth about two cents a
pound when paper and rags are in good de-
mand, and the Chicago Loan and Trust
Company. which is in the same boat with
the bank.