The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1891-08-20
STOLE ABOUT S15O,OO0,
EXTENT OF THE LATEST LOAN
SWINDLE.

A hasty examination of the books of
the National Capital Savings, Building
and Loan Association of North America,
which was taken in hand by the United
States authorities at Chicago, gives q
more definite idea of the extent of the
fraud practiced by the "close" corpora
ton and shows in detail the plan by
Which $1,000 people were Systematically
defrauded. The amount of the firms
receipts was somewhat exaggerated by
the first reports, but Inspector Stuart
holds that at least $780, for which
the stockholders got not 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, who is now
being closely chased by detectives in the
East. EX-Judge S. A. Page and Attor-
ney Lyden Evans, for the cheated stock
holders, and District Attorney Milchrist
turned rapidly through the dozen or
more ledgers and books kept By the cor
poration, and the result, roughly esti-
mated, gives the following figures: To-
tai amount received, $4,000. OF this
1891, 900 has been paid to the agents
throughout the country. There are 3d.
900 assets in sight, So, 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 paid to Lewis f.
Mortimer as commissions, and of this
$4,000 Mortimer must account to the
indignant stockholders. There is yet
$23, 900 to be accounted for, and Mortt-
mer is supposed to have the amount
with him. At least he did have it in
hand when he left the city on "pressing
Eastern business" Since July 80 this
year $13, 900 has been taken in and is de-
posited as a 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, 1t 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 1000, which is looked
upon as an absurd bond for man under
the charge made against him it the off,
cials cared to hold him. N. 81. 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
hand finland 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, &C
cording to Mr.. Downing, is zone man in
a 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-
fend 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 conceived 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 to the company's books If he was
to be it's 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 rolling,
and receiver would have been asked
for by Mr.. Evans had not Uncle Sam got
there first
] "Mortifner runs things with high
hand" said Mr.. Evans, after he had
looked over the books of the bogus COM
'pany, sand it's wonder he did not
smash things and get in the hands Of the
law before. He put his father in as
secretary and treasurer, his brother-in-
law Ct. o. Wentworth as president, and
had man in Canada named Choate'
whose proxy he voted regularly. 1t was
a sort of family affair between them, and
Mr.. Downing, the president, whom
Mortimer claimed to have ousted by
lthe recent election, was made a.
tool of, as was also the vice president,
Mr. Tollman. These men, l believe,
got nothing. We are going now toI
see what we can do for the stockholders.
There is $500 left in bank and SO, 100
out on loans, the real estate security for
which we believe is perfectly good.
That is about 90 per cent any how.
We will next make an application for a
receiver, and / believe the association
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 $4,000 has been re.
ceived, which the court will take charge
of as trust fund, and believe that "a
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-
ceiyed, this does not cover the entire
scope CT Mortimer'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 it's 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-
ceived by the association was kept, and
stated that more than fifty letters con-