Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1890-09-12
Eilko Van Houten, the Ex-H Hardware
Merchant, Brought From Taco
ma by Sheriff Donnelly.
He is Under all Indictment Charged
+ With Having Obtained Money
Under False Pretenses.
A History of the Transactions of the
Firm of Which Mr.. Van Houten
Was Senior Member.
A Man of Nerve.

A telegram received Wednesday morn
ing, stating that Sheriff Donnelly was on
his return from The coast with Eilko Van
Houten, confirms a rumor which has been
current for several months that a former
prominent business man of this city was
indicted by the grand jury during it's ses-
sion here in May last, and brings to mind
the sudden collapse of the firm of Van
Houten Bros. in October last, as we'll as
the recent speculations of the senior mem
Der of the firm in Seattle. Among other
things his investments there are said to
include several acres of valuable land in
the vicinity of Seattle, a laundry and an
interest in a patent dish washer. 1t also
transplres that requisition papers were re-
Gently granted for his apprehension and
return to answer to the indictment which
charges him with obtaining money under
false pretenses."
Much interest having been manifested as
to the circumstances which have led up to
the present situation, the TRIBUNE has en-
deavored to ascertain the facts in the case.
The following statement, CLEANED from va
rious sources, will show that the TRIBUNE
has been partially successful, although it
is said a complete history of the case
would furnish material for a dime novel Of
the most lurid type.
HISTORY OF THE CASE.
Indications point to the fact that the for
mer firm Of Van Houten Bros. was prac-
tically bankrupt when they closed bust
ness in Pella, La. Subsequently a new firm,
inn1pAinr Incpnh TT Titt1a uyhn anDfrih-
uted 81, 900 to the capital stock, was organ
lied and commenced the hardware and ag-
ricultural implement business in this city
in 1883. The head and front, however, of
the firm was the said Eilko VanHouten,
who managed all the affairs pertaining to
the business of the firm, save the selling of
goods. The firm continued in its legiti-
mate business for a year and a half and to
all appearances was making money. In
the fall of 1885, 1t is said, upon representa-
tons by Van Houten that their assets
amounted to $4,000 and liabilities did not
exceed $4,000, or in other words that they
had a clear surplus of S223. 900, they OBJ
tanned credit of the Capital National bank
of this city for some 81, 1000 or $4,000. The
said VanHOuten also represented that he
had previously been engaged largely and
made a great deal of money in the grain
commission business in Iowa; that his firm
owned a large interest in the Bismarck FL
evatOr company and
u II BANK TO ADVANCE MONEY
to purchase wheat on their account, the
bank taking the elevator receipts or tick
cts as collateral with the understanding
that further security was to be added. 1t
seems thai when a month or two later
uDhanf 0nn1 mAnRlH Tn Ina1Inn fIn hnr ly
urged them to dispose of their holdings
but the said Van Houten persistently
urged delay, stating that his experience in
the grain business and his knowledge of
the ups and downs OF the wheat market
would bring them out all right. The bank
and the firm gave to it a pledge and pos
session of the stock of goods in their
warehouse at the east end of the city, with
an agreement providing for its sale to-
gether with the sale of the grain upon GER
tain conditions. The loss upon this deal
was some $4,000 or $4,000, but had the firm
been in the condition claimed, il would not
have been seriously embarrassed.
After this s%hrinkage, it is claimed: the
said Van Houten represented by written
statements, given from tine to time, to the
6amk "a ana fro oai s1s P par | ts ne ne o s10rP and OF IL the ne
instance prior to its collapse as less than
SIS, 900. In April, 1889. after the with
drawaro of j. H. Little, IL less than six
months prior to their assignment, this
same Eilko Van Houten furnished
STATEMENT SHOWING THEIR ASSETS
$685. 900 and liabilities Sic, 900, which state
ment, in the language Of the indictment
the well knew to be false,o as is shown by
his sworn statement showing his assets
$23, 319.90 m liabilities 1929. SOS. 91-in the
one case a. surplus of $4,000 and in the
other a deficiency of upwards OF S6,2SO.Ol
or in other words a discrepancy of
$4,000. In his April statement he gave the
sworn schedule as $1O.196.15. This shrink
age was entirely upon the retail stock in
the Main street store (the inventory Of
which was taken under his own supervis
ion), as the warehouse stock was not in
ventoried, but given as per schedule las'
latter at Its actual value, taken i'm
mediately after the assignment, shows
much larger shrinkage-and in this con
nectiOn a most serious charge is made
surreptitiously obtained, through his son
who was employed in the bank, and a con
siderable portion of the saleable goods re
moved and exchanged for inferior articles
the key not being again surrendered TO the
bank until after the assignment.
TO COvER UP THIS DECEPTION,
which an investigation of the books, KEEP
wholly Dy nlmSelf, would d0uDtleSS reveal
1t is claimed the most reprehensible of al
acts of a business man was resOrted to, to
wit: The entire destruction of the book
save the last set, upon which the balance
of merchandise" account was not brOugh
forward, while in all other respects the,
were models Of bookkeeping. He ha
probably since learned that a person witt
criminal intent can sometimes make bette
use of his books and accounts than to de
stroy them-we refer to his predecessor il
the laundry business. In order to bolste
up their waning credit with their mex
largest creditor TO the bank, the said Va
Houten visits the parties in Chicago an
and represents that his firm. AS owners o
the wheat in the elevator, had given
pledge of the same, together with the good
in the warehouse, to the bank, to be hell
by the latter for the joint benefit Of both
Had such been the case it would have beef
an act of unparalleled generosity on thu
part of the ban which, as a matter of fact
bought the wheat with its own money ant
held the elevator tickets as collateral. /
was a pure fiction based upon the false
hood that his firm were the absolute owner!
and had control of the wheat. Among thu