The morning call., 1891-08-11
GIGANTIC SWINDLE.
The Mails Used for Fraudu-
lent Purposes.
Victims From Every State Of the Union
and ali Glasses Of People.
Prosperous Career of the " National Capi-
tai Savings, Building and Loan ASSO-
citation p" Suddenly Ended.
Special TO THE MORNING CALL

uuctlng the association nave SWinuleu thou
sands of people from every State in the
Union, and have taken in from $1,000 TO
S350,0O0, giving nothing in return. Their
victims are found in all classes of people.
From facts already in possession of the
authorities the scheme well paralleled that
of the great Fund W. swindle. which was
broken up about five years ago. There are
still two men at liberty, having disappeared
several weeks ago, and it is believed they
got away with most of the funds. For more
than six months letters have been received
from all parts of the country by the post
office and city authorities protesting that
the company was not what it was repre-
sented to be; that it was collecting money
and making 10 loans.
THE SALE OF STOCK.
Inspector Stuart has been working on the
case four months. He found that the con-
Germ had agents in every State in the Union,
who were selling the $40, 600 900 OF stock the
company had for sale. These agents were
sent circulars and documents showing the
association to be gilt-edged. When In-
spector Stuart took charge of the case
Lewis +. Mortimer, General Manager and
Secretary. was apparently the responsible
man, and handled the cash received in large
amounts every day. Stuart visited the com
pany's office frequently, disguised as a
letter-carrer. in order to secure evidence.
Several weeks ago Mortimer disappeared,
and to-day, having waited in vain for his
return, Stuart decided to secure the other
visible members Of the com bination. George
o. Ferguson Of Lincoln, Ncbr., representing
ahpnt GiV-tU vi in cit
mOned here, and with his assistance the
necessary evidence was completed and the
arrests made. Three young lady clerks
were taken into custody as witnesses.
DEMAND FOR SHARES.
Mr.. Ferguson, in an interview, said:
"The association was represented in Lin
coin by local firm acting in good faith
Nebraska people are very much in favor of
building and loan associations. and the
offers of the concern were snapped up
quickly. 1t sold shares for so cents each,
with a monthly payment for ninety-six
months of Sl1 05. At the end Of that time
$1,000 loan would be paid for. Then there
was membership fee of $50, appraisement
fee of $50 and S45 for three months pay
ment in advance, thus making S95. The
concern made one $500 loan that was gen.
ulne, and this was just enough baitt to induce
others TO invest, and hundreds sent money
loans to make a contract for home. Stores
were let ana building began. The money
never came, and we wrote TO Chicago to
learn what was the trouble. Finally Pro-
fessor EHwood of Wesleyan University,
VINO was heavy investor, came to Chicago
to Investigate. Manager Mortimer seemed
to be such fine business man, and gave
such assurances that the loans would be
forthcoming that Ellwood went back satis-
fed. But the money never came, and finally
| "a hEf tha e+Etf ftnAo ot,+I,
tiles"
LOANS MADE.
Inspector Stuart and District Attorney
Milchrist went over the concerns books and
found that seventeen legitimate loans have
been made in as many different States.
These. it would seem, were made to allure
other investors. No records of any other
loaus could be found, although the books
show money has been received from hun
dredS of people in places where a single
loan was placed: rough estimate of the
amount received is $4,000 in the year and
half the association has been in existence
The books show that the association had
agents in all the States, but the most active
were in Omaha, Denver, Des Moines, Port
land, Oregon, Galveston, Olympia. San
Francisco and Minneapolis. These agents
transmitted hundreds of dollars daily in
checks, drafts, money orders and registered
letters. Until within few months ago, it
Is said, the concern did a heavy business in
Dul IL appears tue authorities
there made Inquiries which resulted in the
manager leaving. When the association
was organized, February 81, 1890, the off
GERS were: Alfred Downing President; n.
b. Tollnlan, Vice-President; Lewis f.
Mortimer, General Manager and Secretary.
Mortimer seemed to be the leading spirit in
the enterprise and Immediately ncorpor-
ated the concern with capital of $50, co.,
600. lie was good manager and soon had
money flowing in at rapid rate.
A SUDDEN DEPARTURE.
Everything went smoothly until closing
OF the philadelphia branch, when Mortimer
came back here and began gambling with
his business associates. Finally he ousted
Downing, electiDg one f. A Wentworth
President. Downing threatened trouble
ana Mortimer, saying his son was very i'll in
Philadelphia, left suddenly and has not been
seen since. 1t is said lie took about 100000
that. the association had in bank here,
leaving about $1,000 which Downing had
tied up by Injunction. Mortimer was last
heard of July 10th in New York City.
Downing aud Tollman both admitted that
enormous sums have been taken in, but as
serted that they were not in it," Both
alleged that they never received more than
small salary out of the affair. Downing
added: :" Mortimer got it all. We started
in whatI believed to be an honest building
TO be an honest man, as | had
known him in the insurance
business number Of years previous"
Downing, who came here from Peoria, re-
fused to talk further about the work of the
association. He is rather poorly dressed
man, and does not look as though he has
been sharing the enormous profits. Vice.
PRESIDENT TollnaD, on the contrary, looks
extremely prosperous, although asserting
that he had made nothing from the assecia.
tlon. He says he is an artist, and Morti-
mer, who was a friend, asked permission
10 use his name as an incorporation. He
consented, receiving no money. He added
that several weeks ago he and Downing de-
cided to send out circulars to the stock
holders to "see II some settlement could not
he reached" They were discussing these
negotiations when arrested. ToIlman ad-
mltted that since the associations formation
he knew OF $4,000 having been received.
BADLY BITTEN.
Inspector Stuart said he was we'll salts
fed that both the President and Vice-P Pres
ldent are not so innocent as they pretend.
Both got badly bitten" said he, "but both
were in the deal and knew all about the
swindling going on. They didn't get much
OF the money, Mortimer getting the bulk Of
1t, and l have not the least doubt that he
got away with Sl50,000. Ii ever there was
slick man it was Mortimer. have gone
70 ms once time and again disguised as a
letter-caTrler and seen him sign hundreds of
fat registered letters containing large
amounts OF money, and he smiled sweetly
every time the letters came In. He is a
clever talker and n smooth man generally.
ana wou!d convince almost any one who
talked with him five minutes that he was the
ssquarest business man on the earth" Down
each by Commissioner Hoyne. Both had
lawyers on hand and Toilman was Quickly
baiisd out. Downing was unable to secure
Dondsmcn and spent the night in the