The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1891-08-13
THOUSANDS SWINDLED.
CHICAGO AUTHORITIES UNeARTH A
GIGANTIC FAKE.

feOpfe from bVery STATE IN the Union
Taken In-The National Capital Saw
ings, Building and Loan Association OF
America Comes to Grief
CHICAGO, Aug. 11.-Alfred Downing,
II. II. Tollman and three young women
clerks-occupants of the office of the
National Capital Savings, Building and
Loan Association of North America, "
room AIS Rookery building-were ar
rested by United States Marshals Hitch
cock, Allen and Charles and the entire
epistolary contents of the place taken
before United States Commissioner
Herine, charged with using the United
States mails for fraudulent purposes
and placed under s., 900 bonds for
hearing Thursday, Aug. 20. The three
clerks. Misses Downing, Bartholomew
and Wadley, were notified that they
were wanted as witnesses at the hear
ing. 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 S200,000 to $350,000 and given not
one penny in return. There are still
two men at liberty, they having disap-
peared several weeks ago. These two
men, it is believed, got away with most
of the funds. The strangest part of the
whole gigantic swindle seems to be that
1t was indorsed by the leading CONNER
cial agencies Of the land.
Didn't Stop at Forgery, Either.
The conductors of the nefarous enter
prise did not stop at forgery, either, as
among the papers found in the Office is
paper signed by the Auditor of Public
Accounts Of Chicago, TO the effect that
the concern was a substantial one and
did a good business 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
National Capital Savings Building and
Loan Association of North America was
not what its proprietors represented it
to be and that it was collecting money
and making no loans. Inspector Stuart
took charge Of the matter about four
months ago and has worked ever since
TO make case against the officers of the
association. He found that the concern
was gigantic in its reach and had agents
in every state in the Union who were
selling the 20,000,000 of stock the COM
pany was selling. AT the time Captain
Stuart took hold of the case the head
man of the association was Louis f.
Mortimer, the general manager and sec
retary. He seemed to be the RESPONSE
BILE man and handled all the cash. Several |
weeks ago Mortimer and his father dis |
and neither have since been |
heard from. A short time ago Captain
Stuart sent Inspector Gardner, of Lin |
coin, Neb.. where the harvest seemed to |
be the richest. Here Mr.. Gardner |
found George o. Ferguson, who repre- |
Sented about sixty people that had been |
,windled. Mr.. Ferguson came to Chi |
ago with Inspector Gardner, and the |
result was the captures.
The Snap Given Away.
After the arrests were made Mr.. Fer
yuson explained the modus operandi of |
the gang that had been fleeing the citi-
zens of his town. "They were repre-
'ented in our town by Chase Bros"
aid Mr.. Ferguson, "who acted in good
aith. The people of Nebraska are very
much m favor Of the building and loan
ssociation plan and the offers of this
oncern We're snapped up quickly. 1t
old shares for 80 cents each with a
,aymentof S11.05ea month for ninety
tx months, at the end of which time a
4 200 would be paid. Then there was a
fee of $50, an appraise-
aent fee of SEQ and SIS for
hree months payment in advance, thus
making S95. Tne concern made one
500 loan that was genuine, and this
vas just enough bait to lead others to
invest Hundreds sent their money to
,hicago, and on the strength of the
Oan they expected to make contracts for
ONES, and stores were let and buildings
egun, but the money never came,
Inspector Stuart and District Attorney
hlchrist went over the associations
ooks and found seventeen loans had
cen made in as many different states.
l rough estimate of the amount of
loney the association received is S175,-
10 In the year and half the associa-
ON has been in existence. The books
the association show that it had
gents IN all the states, but the most
ctive were in Omaha. Denver, Des
loines, Portland, Galveston, Olympia,
an Francisco and Minneapolis
Millions In It.
Up to within several months ago tho
ssociation did a big business in Phila-
elphia, where, however, the authorities
OF after the manager and drove him
way. President Downing and Vice
resident Tallman admitted. after their
rest, that enormous sums had been
ken in, but they said that they had
ot ever been Fin it. ~ I'VE took in
over $50, 600 that / know Of"
nd President Downing, rbut / never
ot more than poor salary out of it.
I'D Tallman did not get as much as l
d They got badly bitten, both of
lem, said Inspector Stuart, rbut they
ere in the deal and knew all about
hat was going on, but they did not get
uch. Mortimer got the bulk of the
oney and have not the least doubt he
IT away with $l50,000. Mortimer is a !
ever talker and a smooth man gem
ally, and would convince almost any
le that talked five minutes with him {
at he was the squarest business man
earth. One of the peculiar features
the case is the Endorsement of the
heme by the Bradstreet and Dun
'encies. The officers of both agencies :
amined the association and its affairs, !
1t the evidences Of prosperity were so
eat that the agents made favorable re-
rts. Indiana, Kentucky, Ohio, Penn
lvania, New York and the southern
ates were worked, but the bulk of the
ctims live in states west of the Mis-
sippi