The farmers' union., 1891-08-20
TWAS A BARE SWINDLE.
ITS VICTIMS NUMBER OVER
THIRTY THOUSAND.


Plun,ier-Stin q Small Part Of tho Re-,
ceipts in the Hands OF the Courf.
\ hasty examination of the books of
the National Capital Savings. Ruilding
and Loan Association of North America,
which was taken in hand by the United
States authorities at Chicago, gives q
fraud practiced by the "close" corpora
tion and shows in detail the plan by
which 81 GOO people were Systematically
dcfrauded. The amount of the firms
receipts was somewhat exaggerated by
the first reports, but Inspector Stuart
holds that at least Sl50,0oO for which
the stock holders got not u cent was taken
in by the company.
The greater part of this amount, over
and above the associations expenses. is
in the possession Of Louis f. Mortimer,
the promoter of the project, VIII, is now
being closely chased by detectives in the
East Ex-Judge S, a. Page and Attor-
ney Lydcn Evans, for the cheated stock
holders. and District Attorney Milchrist
turned rapidly through he Gozcn or
more ledgers and books kept By the cor
poration. and the result, roughly esti-
mated, givrs the following figures: To-
tai amount received, $4,000. OF this
S3l, 0oo has been paid 10 the agents
throughout the country. There are Sl3,-
600 assets in sight. 50, 100 of which is the
Securities upon which small loans to give
confidence to stockholders were made.
and the balance in the bank and now
subject to the courts order. Then the
books show $4,000 laid to Lewis +.
Mortimer as mmisSionS. and of this
Sl9.Go0 Mortimer must account to the
b,f
S23. 900 to be accounted for, and Mortt-
mcr is supposed to have the amount
with him. At least he did have it in
hand when he left the city on "pr ssins
Eastern business Since July 30 this
year Sl3. 900 has been taken in and Is de-
posted as u trust fund, subject TO the
order of the superior Court, in which
the case is now pending
Mortimer Is being closely followed in
the East, and word was received at the
Government building which. it is said,
will lead to his arrest. The officials
look upon him as the important man and
care nothing about the little catch, for
Mortimer got the money and the others
were used as his tools. Alfred Down
ing, president of the bogus building as
sociation, is still In the hands of the
Government authorities, but his bail has
been fixed at So, 900, which is looked
upon as an absurd bond for a man under
the charge made against him il the Off
cals cared to hold him. y II. Tollman
has also been released on the same
bond. In view of the fact that both
men have told all they know about the
management of the National Capital
Savings, Building and Loan Association
of North America and are working
d-in-hand with the authorities for
the capture of Mortimer, it can easily
be surmised that neither of these men
will be prosecuted, but will be used as
witnesses against Mortimer, who. ac-
cording to Mr., Downing, is cone man In
thousand. and as smooth as the best.
Attorney Lyden Evans has been drawn
into this case by circumstances He was
at first called upon by Mortimer to de-
fcnd certain little suits and knew moth
ing of the associations standing. He
did more and more Of the firms legal
business until one day he cone eived the
idea that all was not straight Mr.. Nor
timer was In New York at the time and
Evans demanded at the associations Of
fee In the Rookery building to have
access II the company'S books II he was
to be its legal adviser. 1t was then he
met Tollman. one of the directors and
he told him what he thought. Tollman,
he says, became frightened, and asked
what he could do to protect himself. as
he did not know the association was not
straight. This started the ball roI ing,
aud a receiver would have been asked
for by Mr.. Evans had not Uncle Sam got
there first
"Mortimcr runs things with a high
hand" said Mr.. Evans, after he had
looked over the books of the bogus COM
pauy, "and it's q wonder he did not
smash things and get In the hands of the
law before. lie put his father in as
secretary and treasurer, his brother-in-
| law II. O. Wcntwurfh) as president. and
had q man in Canada named Choate
whose PROXY he voted regularly. 1t was
| sort of family affair between them. and
Mr.. Downing, the president whom
Mortimer claimed to have ousted by
the recent election, was made
tool of. as was also the vice president,
Mr.. Toilman. These men. l believe.
got nothing. We are going now to
see what We can do for the stockho ders
| There is S7,90o left in bank and So, 100
ont on loans, the real estate security for
| which we believe is perfectly good.
| That is about 30 per cent any how.
| We will next make an application for a
JcttiNcI. anu tuH aSSNN I" eioh
| ought not to be allowed TO go to pieces, as
there is heap of money coming in all
the time Since the money now In bank
was tied up over Si3.ooo has been re-
ceived. which the court will take charge.
of as a trust fund, and l believe that al
association that is in receipt of such
large amounts shouldn't be allowed to
go to pieces"
While the figures got from the firms
books showed that $4,000 had been re-
ceived this does not cover the eutire
scope of Mortimcr's business He ran
branch house for three months at Phila-
delphia. and of the proceeds it Is said no
account was made
The company operated in nearly every
State In the Union and its agents were
in nearly every town The plan was
the regular system adopted by building
and loan associations, only they failed
to make the usual loans when called upon,
and the stockholders money can only be
accounted for the one way.
Inspector Stuart said that he does not
think record of half the money re-
ccived by the association was kept. and
stated that more than fifty letters con-
tanning checks, money orders, etc. rang
ing in amount from IS to $50. and ad-
dressed to the association, were received
by one mornings mail.
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