Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-08-11
A GREAT SWINDLE.
National Capital Savings Build
ing and Loan Association.
ITS OFFICERS ARE ARRESTED.
Thousands of People in Every State in the
Union Have Been Nctimized.
They Have Taken in from 100000 to
s350.oo0. aud Given Nothing in Re
turn How They Worked it.
One of the Victims Tells.

CHICAGO. Ill, Aug. 1O.-Alfred Down
ing, president. and f. Pollman. vice-preSi-
dent Of the National capital savings build
ing and loan association Of North America,
were arrested to-day by Postottice Inspector
Stewart charged with using the mails for
fraudulent purposes.
1t is charged that the men who have been
conducting this association have been
swindlng thousands of people from every
state in the Union and taken in from 500
900 to $350,GO0 and giving nothing in
return. The victims hail from Maine TO
California, and are numbered among the
rich and poor alike.
From facts already in possession OF the
authorities the scheme will parallel that of
the great fund swindle, which was
broken up arOut five years ago. There are
still two men at liberty. they ha Cine disap-
peared several weeks ago. These two men
that are missing are believed TO have got
away with most of the funds For SIX
months or more letters have been received
FROM ALL PARTS OF THE COUNTRY
by the postoffice and citizen authorities
protesting that the Nationa! capital saw
ings, building and loan association of
North America was not what its projectors
represented it TO be, and that IL was collect
ing money and making no loans. Inspector
Stuart has been working on the case for
four months. He found that the concern
was gigantic iii its reach, and that it had
agents in every state in the Union who We're
selling the S20.0O0,OOO of stock Of the
company. The scheme was advertised
through these agents. who sent circulars
and documents showing the association TO
be gilt-edge. At the time Capt. Stuart took
charge Of the case Louis NJ Mortimer. the
general manager and secretary, was appar-
emily the respOnsi Ole man and handled the
cash received Ill large amounts every day.
Capt. Stuart visited the compauY's office
frequently.
DISGUISED AS \ LETTER CARRIER
in order to secure evidence. Several weeks
ago Mortimer disappeared and to-day. after
having waited in vain for his return, Capt.
Stuart decided TO secure the other members
of the combination. George O. Ferguson of
Lincoln, representing about sixty victims in
this city, was summoned here. With his
assistance the necessary evidence was com
plcted and the arrests We're made. Three
young lady clerks were taken into custody
as witnesses.
Ferguson, in an interview, said the asso-
citation was represented in his town by a
local firm acting in good faith. The people
OF Nebraska are very much in favor of the
building and loan association plan, and the
offers of this concern
WERE SNAPPED Up.
payment of Sll.O5 each month for ninety
six months, at the end of which time a $1,000
loan would be paid for. Then there was Il
bership fee of $50. an appraisemenu
fee of $40 and so for three months
payment in advance, thus making 500
The concern made one $500 loan
that was genuine, and this was Just enough
bait to lead others to invest, and hundreds
sent their money to Chicago, and on the
strength of the loans they expected to make
they contracted for homes. Credit was
obtained and building was begun. The
money never came and we wrote ON
here TO learn what the trouble was, and
finally Professor Wood of the Western
university. VINO is quite heavy investor.
came to Chicago to investigate. He visited
the Offices and Mortimer seemed to be
fine business man and gave such assurances
that loans would be forthcoming that Pro-
fessor Wood went back satisfied. But the
money never came, and finally / laid the
case before
THE POsTOPFICE AUTHORITIES.
Inspector Stuart and District Attorney
Gilcnrist went over the books of the concern
and found that seventeen legitimate loans
had been made in as many different
states These. il would seem. were made
to allure other investors as in the Nebraska
case. No record of any other loans could
be found, but the huge books
show that money has been received
from hundreds of people from
the places where 4 single loan
was placed. A rough estimate of the
amount of money received is $4,000 in the
year and half the association has been in
existence. The books of the association
show that it had agents in all the states,
but the most active We're in Omaha, Den
yer, DesAIoines, Portland, Oregon: Calves
ton, Tex: Olympia, Wash. San Francisco
A-F,,,,a.r,11ic
mitted
HUNDREDS OF DOLLARS DAILY
in checks, drafts, money orders and by
registered letters. Until within d few
months the concern, it is said, did a heavy
business in Philadelphia, but it appears that
the authorities there made discoveries
which resulted in the manager leaving. The
association was organized February p,
1899 with the following officers: Alfred
Downing president: H. y. Pullman, vice
president; Louis NJ. Mortimer, general
manager and secretary. Mortimer seemed
10 be the leading spirit in the enterprise.
and at once incorporated the concern at
s.. 900 600. Mortimer was good manager
and soon
HAD MONEY FLOWING IN
at rapid rate. Everything went smoothly
till the closing of the Philadelphia branch.
when Mortimer came back here
and began wrangiing with his business
associates. Finally he ousted Down
ing and elected F a. Wentworth
president. Downing threatened trouble,
and Mortimer. saying his son was very i'll
in Philadelphia, left suddenly and has not
been seen since. Il is said he took almost
ninety thousand dollars that the
association had in bank here.
leaving about five thousand dollars which
Downing had tied up b. injunction. Morti-
mer was last heard of July 10 at 70i Eighth
avenue. New York city. President Dow
ming and Vice President Pullman both ad-
mitted that enormous sums had been taken
in. but asserted they We're not ''in it"
Both alleged that they had never got more
than a small salary out of the affair