Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-07-30
CHARGES OF FRAUD
Made by the Police Against the Cap
itol Building Association.
OFFICERS DENY THE ALLEGATIONS
Additional Informations Entered and Others
Are Expected.
HEARINGS TO BIZ HELD TOMORROW

! |
ing the arrests of Eli Dunn and William
Harrison, two men apprehended yesterday
for completely in supposed building ant
loan association frauds. The two men arr
confined in the Central station, and -th'
police are looking for Mr.. Seton, the senior
partner, who had been previously arrested,
but was released on 81, 900 bail.
The police officials, it seems, have moth
ing more than the mere supposition shat the
men are crooked, and nothing of a criminal
nature can SO far be turnedup against them
Whether the scheme is a swindle or not re-
mains to be seen; and while the investiga.
tion is going on The DISPATCH will give
both sides of the matter.
The hearings in the cases will be held be.
fore Alderman McKenna, at O. clock to.
morrow afternoon. The charge against the
men is conspiracy, and an attempt will be
made to show that they conspired against
the stockholders. Detective Shore. who is
working on the case. was at the Office ofthe
firm yesterday most of the day, and found
that the company was doing business with a
great many people, particularly in A1le-
gheny. While the managers of the local
company were ruminating in Central
station, quite a number of people called and
wanted to pay money. When told that the
thing was swindle they refused to believe
it and wanted to put their money in any
how. One man had 500 which he wished
to deposit for stock, and was quite angry
at not being able to do SO.
HISTORY OF THE BUSINESS.
The firm name was Seton & Dunn, and
for the past six weeks have been DONG busi-
ness at room No o. corner of Market and
Water streets. They claimed to be the
Pittsburg representatives of the National
Capitol Building and Loan Association,
which is chartered and operated under the
laws of Illinois. In the circulars of the
concern the repositories are given as the
Provident Life and Trust Company of Phil
adelphia, and the Chicago National Bank
of Chicago, Ill. The officers of the National
Association are men OF high standing in the
| communities where they reside and do busi-
ness. The Pittsburg agency has about 20
sub-agents in the small towns surrounding
Pittsburg, and it is said they have been
rolling ia the business at an alarming rate.
The stockholders of the association were
given stock in the shape of beautiful gilt
edged bond, upon which was attached a
golden seal. There was nothing suspicious
looking about the bond, which read as fol-
lows:
This certifes that in consideration of the
membership fee and monthly installments and
full compliance with the terms contained In
the charter and bylaws of this ASSOCIATION,
which are hereby referred to and made part
of this contract, of Pittsburg,
vania, is shareholder in the National Capitol
Building and Loan Association, and the said
association will pay to the said shareholder, his
heirs, executors, administrators or assigns the
sum of 500 for each share held by him when
the shares of this series have reached mature
value Of 500 each.
A PRETTY BOND.
The bond is signed by the President and
Secretary of the association, and alter turn
ing over his money to the officers the stock
holder is given the certificate to negotiate
loan if he needs it. On the top of the face
of the bond is a beautiful picture of the
Capitol at Washington. Alfred Downing
is President, and the other officers named
are we'll known men of stability.
The hearings in the cases will be heard by
Alderman Mckenna tomorrow afternoon.
and by that time, it is expected, Seton will
be captured. The plaintiffs are Mary Nc
NalIy, Frank Newman and Rebecca
Lapsley. Mr.. Newman has receipt show
ing that he paid S25 cash for the dues on ten
shares of stock for the first three months.
Additional informations have been made by
George Smith and ulia Malley. When asked
what he thought of the supposed swindle
last night, Assistant Superintendent of
Police O'Mara said: "We think it is q
gigantic swindle and it is worse than the
Louisiana lottery. The world is full of
suckers yet, and they are ready to invest in
anything that promises to yield big return
for what is put into it. 1t is probable that
the National Gas Company itself is all right,
but the officers who were in charge of the
Pittsburg branch are not models of honesty
by any means, and think they were not only
Thinning the people, but the company as
we'll. They agreed to loan money to stock
holders to build houses, but when the time
came TO get the money the officers of the
company said they could not give it. They
claimed to have a capital stock of 50, ,000,-
900, and investigation shows that they
haven't a cent. If they were the authorized
agent of the Chicago concern, I think the
head officers of the organization would try
to get them out on bail"
EXPECTING MORE COMPLAINTS.
Inspector McAleese said: esI supposed
the firm has swindJed hundreds of people
and by tomorrow I expect to have scores
of complaints from people who have been
victimized. Four more informations have
been made since o'clock. The National
Company is probably all right, but there is
no question, but the men we have arrested
are swlndlers."
Messrs. Dunn and Harrison saw if any
money was collected from the prosecutors.
it was done by sub-agents and the reports
had not been sent to the Pittsburg Office.
They say the association does not issue stock
after the application has been made, for
some weeks or months, as it takes con-
siderable time to look up the titles to the |
property, upon which they are asked, to |
loan money. .-t.-t-s.
The circulars say the association was
incorporated under the laws of Illinois and |
registered under the laws of Pennsylvania, |
with an authorized capital of $4,000, 900.
The following is copy of a telegram re-
ceived by Mr.. Seton from the Chicago |
Office:
CHICAGO. June %, 1890.
To Messrs. Seton Dunn. Sc Water street, Pitts
burg, Pa: XXX. |
Carney's loan ready, also several others. |
Send papers soon as possible. Sundays letter |
received. Stick up for your rights
NATIONAL CAPITAL SAVINGS, BUILDING |
LOAN SOCIETY, Chicago.
THEY ALLEGE PERSECUTION.
A reporter for THE DISPATCH last even
ing talked with an agent OF a foreign build
ing and loan association, which has recently |
invaded this territory, in the hope OF obtain
ing plain statement of the aims, methods
and scope of the organizations. Said he:
There is a certain element in local building
and loan circles, egged on by the banking and
interests. which is determined to