Evening journal., 1891-08-11
SHARP CHICAGO CROOKS
A Big Swindle by a Bogus
Loan Association.
VICTIMS IN NUMEROUS STATES.

Only Seventeen Loans Were Actually
Made, One In Each OF Seventeen states,
but she Projectors OF the scheme
Took in Many Thousands of D.Iiars.
CHICAGO, Aug i1.--Alfred Downing, N.
II. Tollman and three young women clerks,
occupants of the Office Of the National
Capital Savings, Building and Loan asso-
citation Of North America room 4l5
Rookery building, have been arrested by
United States marshals and the entire
epistolary contents Of the place taken TO
the Office Of United States DistrictAttorney
Milchrist. Downing and Tollman were
charged with using the mails for fraudu-
lent purposes and placed under 1900
bonds for hearing. The three clerks,
Misses Downing, Bartholomew and Wad-
ley, were notified that they were wanted
as witnesses at the hearning.
swindiing by Wholesale.
It is charged that the men who have been
conducting this association have swindled
thousands OF people from every state in
the union and taken in from 100000 TO
S350,o0o and given not one penny in return.
There are still two men at liberty who, It
is believed, got away with most Of the
funds. The strangest part Of the whole
gigantic swindle seems TO be that Il was
indorsed by the leading commercial agen-
cies Of the land.
Did Not stop at Forgery.
The conductors Of the Defarious scheme
did not stop at forgery either, as among
the papers found In the o&ce is a paper
signed by the Auditor OF Public Accounts
Of Chicago TO the effect that the concern
was substantial one and did a good busi-
ness. There is no such officer in Chicago.
For six months and more letters have been
received from all parts OF the country
protesting that the association was not
what its proprietors represented il 10 be,
and that IL was collecting money and max
ing no loans
Inspector Stuart took charge Of the mat
ter about four months ago aud has worked
ever since TO make case against the OIL
GERS of the association.
Gigantic in Its Reach.
He found that the concern was gigantic
In It's reach, and had agents in every state
In the Union, who were selling the 400 900, :
| 600 Of stock the company was selling At
case the head man Of the association was
Louis r. Mortimer, the general manager
and secretary. He seemed to be the re.
sponsible man and handled all the cash.
Several weeks ago Mortimer and his father
disappeared, and neither has since been
heard from.
a short time ago Captain Stuart sent
Inspector Gardner to Lincoln, Neb., where
the harvest seemed 70 be the richest Here
/ Mr. Gardner found George O. Ferguson
who represented about sixty people that
had been swindled Mr. Ferguson cam,
TO Chicago with Inspector Gardner anc
the result was the captures already made
How II was Done.
Mr.. Ferguson explained the modns
operandi Of the gang. They were repre-.
sented in our town by Chase Brothers, y
i said Mr.. Ferguson, "wh0 acted In good
faith. The people Of Nebraska are very
much in favor of the building and loan
association plan, and the offer Of this con
cern was snapped up quickly. Il sold
shares for hfty cents each, with payment
of fll05 each month for ninety-six months,
at the end of which time a 81 coo loan
would be paid for Then there was a
membership fee of thirty dollars, an ap-
praisement fee OF twenty dollars and forty
five dollars for three months payment in
advance, thus making ninety-flve dollars
The concern made one $500 loan that was
genuine, and this was just enough bait to
lead others 10 invest. Hundreds sent their
money to Chicago, ami on the strength Of
the loan they expected to make contracts
for houses and stores were let and build
ing begun, but the money never came"
Endorsed by Dun and Bradstreet's.
A rough estimate OF the amount Of
money the association received is Sl75, 600
in the year and half the association has
been in existence Only seventeen loans
were made, one in each Of seventeen states.
One Of the peculiar features Of the case
is the Endorsement Of the scheme by the
Bradstreet and Dun agencies The officers
Of both agencies examined the association,
but the evidences OF prosperity were so
great that the agencies made favorable re-
ports. Indiana, Kentucky, Ohio, Pennsyl-
yania, New York and the southern states
were worked, but the bulk Of the victims
live in states west Of the Mississippi