Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-04-14
ESPECIAL TELEGRAM TO THE D1sFArcH.1

CHICAGO, April 13.-An injunction was
issued by Judge Collins to-day in case OF
more than usual interest. Only few hun
dred dollars were involved in the litigation,
but the developments made in the pre-
liminary hearing may lead to the most i'm
portant revelations.
Recent dispatches from New York tell
the story of a gigantic swindle engineered
by Ernest j. Loomis, who comes from Yer
montville, Mich. Loomis was arrested
Thursday afternoon and charged with
stealing $1,000 worth of furniture
from the Office of the Buyers Union.
In 1887 Loomis, a successful book agent,
conceived and proceeded to execute bril-
liant and original scheme. He organized a
joint stock company for the alleged purpose
of republishing old and valuable works.
He had 81, 900 at that time. A year later
he was worth $50, 900, but the stockholders
were poorer.
The Buyers Union went out of existence,
and Loomis reorganized under the name of
the Loomis National Library Association.
He managed to get Bradstreet rating of
$3.50, 900, and stock, plates and copyrights.
Albert L. Talcott, Chicago lawyer, con-
tributed $1,000, and G. L. Hill, of New
York, paid in S., 900 and was made Treas
urer. William Jones, the law partner of
Robert G. Ingersoll, contributed $4,000.
GOT INTO SERIOUS TROUBLE.
Early last week Loomis announced that
the company was losing money. He hired
several trucks and moved the Office goods to
795 Broadway. There he held meeting,
and organized himself into the Consolidated
Buyers Jobbing Company. He was ar
rested for stealing the furniture, and held
under S., 900 bail.
It is a remarkable coincidence that F. s..
Loomis, Chicago book publisher, should
get into somewhat similar legal fight at
the same time. The affair grows more COM
plicated and interesting when it is under
stood that F. s. Loomis, of Chicago,
and Ernest j. Loomis, of New York,
are brothers. Thursday afternoon At
torney Henry McLeary came before
Judge Collins and asked that an in
junction be granted restricting the Century
Book and Paper Company of Chicago from
collecting money on $500 draft signed by
Arthur E. English, of Scribner, Neb. The
draft was issued by the Continental Bank,
of Omaha, and deposited for payment with
the Chicago National Bank.
ANOTHER VICTIM SHOWS Up.
This afternoon Herman c. Hill filed a
petition before Judge Collins, asking that
the Century Book and Paper Company be
compelled to return him 500 which he had
paid to officers of the company. He claimed
that the money was obtained from him
under false pretenses. Both cases will be
heard Monday.
English says he saw an advertisement in
an Omaha paper stating that the Century
Book and Paper Company would like to
engage the services of young man who
should act as their general agent in Omaha.
If the applicant proved competent he was
to receive salary of SITS q
month. English determined to get the
agency. The officials of the company told
him to bring $500 to Chicago as guarantee
of good faith. English made a draft for
this amount and came to town. He was
warmly received by the officers of the COM
pany in their big rooms in Wabash avenue.
After English had been introduced around
and had handed over his $500 draft he was
informed that guarantee of 81, 900 was re-
quired. A long conference followed. Then
it was agreed that English should pay the
remaining 81, 500 on May 1. An agreement
was then drawn up, Wn1cn Engllsh claims
he signed without reading, being assured
that it related simply to his duties as agent
of the company.
A REMARKABLE DOCUMENT.
This document is a remarkable produc-
tion. After describing the multitudinous
duties of an agent of the company, it be-
came very specific in its explanation of
how money should be RENTED to the con-
Germ, but ingeniously evades explanation of
how the signer can hold out his salary of
S175 after having performed all the other
obligations. English sought legal counsel
when he left the rooms of the concern, and
the injunction proceedings were begun in
Judge Collins court
1t is estimated that hundreds of men in
the West have been caught by the cutthroat
agreement of the concern and that their
losses will amount to 500, 900 or more.