Los Angeles daily herald., 1889-11-27
A S1,OOO,OOO SWINDLE.
A Real Estate Fakir's Pro.
digiOus Frauds.
HOW HE DUPED THE INNoCENTs
His Victims Among All Glasses,
From Servant Girls to
MilliOnaires.

Associated Press Dispatches to the HEBALD
CHcAeo, November 26.-Sensationa
developments are following each othel
rapidly in the million dollar swindle O
Frederiksen & Co., land agents. To
night it is asserted that thousands u
settlers, mainly Scsndinavians,i in Kansas
Iowa and other western States, who
had, as they supposed, paid for theil
land and got deeds from Frederiksen
have absolutely no title to it. Dark hints
are dropped that at the back Of Frederik.
sen were parties in Milwaukee who are
the real benefciaries in the gigantic
frauds. Wholesale arrests of clerks and
other persons in Chicago who brazenly
acted as Frederiksen's tools are talked of
Tomorrow the States Attorney and the
chief sufferers will consult and organize
plan Of campaign.
SOME OF THE LAMBS.
Eight or ten eastern capitalists are said
by one authority, this evening, to have
contributed 100000 each to Frederik-
sens Golfers, and $4,000 is thought to
have been dropped by a single victim out
of the many in Milwaukee-E. G. Clum-
stock. Another Wisconsin victim, Mr..
Cowie. was heard declaring this after.
noon that Frederiksen's arrest would be
secured, if it were necessary to follow
him to the end Of the world. Cowie says
200 servant girls in Chicago invested with
Frederiksen from $50 to $400 each, and
have lost all.
Among Chicago capitalists who are
mentioned as having had confidence in
Frederiksen and suffered thereby, are f.
G. Southworth, the steel man, and S. w.
Rawson, the banker. Besides these the
losers are said to include the Fort Dear
born National Bank and the Chicago
Loan and Trust Company.
Ex-Governor Rice, of Wisconsin, one
of the victims of the swindle, arrived this
afternoon. He admits losing $3.50, 600,
and says Cashier Nunnemacher, OF the
Merchants Exchange Bank of Milwau-
kee, is also heavy loser. while G. D.
Hendricks, prominent real estate
broker of Milwaukee, has lost every ce mt
he owned and been forced to assign. The
Milwaukeeans believed that the Chica-
goana had investigated Frederiksen, and
therefore did not themselves investigate.
FREDERIKsEN' s PLAN.
Rice says Fredsriksen's plan was 10
get an option on tract OF land from
some railroad company, and repres Mt
ing that he owned i, sell the farms to
the ignorant emigrants. Abstracts were
furnished by notsries in Frederiksen's
Office, who certified to anything. Some
weeks ago Frederiksen confessed to
Nunnemacher, Hendricks and Rice that
he had been issuing fraudulent deeds
and mortgages, but the enormous ex.
tent of the deception was not disclosed.
The trio of capitalists let Frederiksen 60
ahead and form a stock company for
half a million dollars to carry on busi.
ness, and themselves took most of the
stock. Since then untold other crooked
ness has come to their ears, and Freder-
iksen has fed.
Rice says number of large dealers in
railroad land in Chicago hold Frederik-
sens paper, but are keeping quiet for
fear it will ipjure their credit. Today
Frederiksen'0 bookkeeper, Goodbid, was
held in bonds Of SIS, 1000 until Saturday.
Mr.. Haughan, who was appointed re-
ceiver for Frederiksen, has asked to be
discharged. He reports the assets in
sight less than 500.