Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1891-08-14
The National Capital, Savings, Build.
and Loan Association of
North America.
For over n Year it Conducts 4
Crooked Business in
Chicago.
Many Thousands of Victims in all
Parts of the United
States,

CulcAGo, Aug. u-Alfred Downing,
president, and n, II. Gollman vice preSi-
dent Of the National Capital Savings,
Building and Loan Association OF North
America were arrested today by Post
Office Inspector Stuart, charged with us.
ing the mails for fraudulent purposes, It
| is charged that the men who have been
conducting the association have swiudled
! thousands OF people from every state in
| the union; have taken in $4,000 60
SS50, 900, giving nothing IN return, The
victims are found in all classes of people
For more than six months letters have
| been received from all parts OF the coun.
| try by the post office and elty authorities
protesting that the company was not what
| Il was represented TO be; that 1t was col
! letting money aud making no loans, In.
Spector Stuart has been working ON the
case four months, He found that the con
Germ mad agenta in every state IN the
union, who We're selling the $4,000.
| 600 of stock the company had for
| sale These agents were sent circulars
and documents showing the association to
| be gilt edged When Inspector Stuart
| took charge of the case Lewis +, Morh-
mer, general manager and secretary, was
apparently responsible man and handled
| the cash received in large amounts every
| day. Stuart visited the company's office
frequently disguised rs u letter carrier in
order TO secure evidence.
Several weeks ago Mortimer disap.
peared, and today, having waited in vain
| for his return, Stuart decided to secure the
other visible members of the combination.
| George q. Ferguson, of Lincoln, Neb"
representing about sixty victims IN his
city, wps summoned here, ard with his
assistance the necessary evidence was com.
pleted and arrests made. Mr., Ferguson
in an interview said. "rhe association
was represented in Lincoln by "
local firm acting in good
faith. Nebraska people are very
much in favor of building and loan aSso'
Citations anu the offers of this concern
were snapped up quickly. II sold shares
fol fifty cents each with monthly payments
for 90 months. of Sll.05; Mt the end of
that time 81 900 loan would be paid for;
! then there was membership fee OF
| $50, an mp raisement fee Of $50; SAB for
| three months payment in advance, thus
making S95. The concern made one $500
Ioan that was genuine and this was just
enough bait to induce others TO invest,
Inspector Stuart and District Attorney
! Michrist went over the concerns books
and found that seventeen Legitimate loans
| had been made in MS many different
states. These, il would seem, were made
| to allure other investors. No records Of
other loans could be found although the
books show that money has been received
from hundreds of people in p aces where
u single loan was placed.
rough estimate Of the amount received
is Sl75, 900 in the year and u half the ASSOC
citation has been in existence. The books
show that the association had agents IN
ali the states, but the most active were in
Omaha, Denver, Des Moines, Port land,
Oregon, Galveston, OLYMPIA, San Fran
cisco and Minneapolis, These agents trans
mitted hundreds of dollars daily IN check
drafts, money orders and registered let
tiers. Until within a few months, 1t IL
said the concern did heavy business III
| Philadelphia, but it appears that the au-
thoriies there made inquiries which re-
suited in the manager leaving,
When the association was organized,
| February II, 1890, the officers were: AL.
| fred Downing, president; N. II. lollman,
vice president; Lewisf. Mortimer, general
manager and secretary. Mortimer seemed
10 be the leading spirit In the enterprise
and at once Incorporated the con
Germ with capital Of s2OOOO,0OO,
! He was good manager and soon had
money flowing in at a rapid rate. Every.
thing went smoothly until the closing OF
! the Philadelphia branch, when Mortimer
came back here. Finally he ousted Down
! ing and elected one y, A. Wentworth
president Downing threatened trouble
and saying his son was very i'll in Phila-
delpha he left suddenly and has not been
seen since II is said that he took
about 800 900 that the association
had in the bank here, leaving about
s. 600 which Downing bad tied up by an
! Injunction Mortimer WAS last heard OF
| July 10 m New York city Downing and
Tollman both admitted that enormous
sums had been taken in, but asserted that
| they were not "in IT, and charge That
Mortimer got il all.
| Inspector Stuart said he was well salts
| fed that both the president ard vi"e
| president are not 80 innocent rs they pre-
tend. Both got badly bitten, said he,
"but both knew all about the swindlinU
/ going on.
Downing and Tolman were held in
o., 900 bonds each by Commissioner Hoyne.
| Both had lawyers on hand and Tolman
was quickly bailed out. Downing was
unable 10 secure bondsmen and spent
the night in custody of the deputy
marshal. One Of the attorneys for the
men said there was no doubt the concern
was rotten 10 the core, but he believed
Downing and T)llman were simply the
victims OF Mortimer guile.
sUICIDED IN tALiFoHNla.
Former Iowa Man Takes His Life In the
West
MARsnALTows, Iowa, Aug. la