Crawford avalanche. (Grayling, Mich.) 1879-19??, 1891-08-20
STOLE ABOUT sl5O,OOO.
EXTENT OF THE LATEST LOAN
SWINDLE. 49,


Dupes In All Parts of the Union-heceipu
sun Coming In Mt the Rate OF $1,000
per Day-MortImer Is still Ahead OF the
Oncers.
A hasty examination uf 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
more definite idea Of the extent OF the
fraud practiced by the "close" corpora
tion and shows in detail the plan Dy
which 81 900 people were systematically
defrauded. The amount OF the nrms
receipts was somewhat exaggerated by
the first reports. but Inspector stuart
holds that at least S150,000 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. IL
In the possession of Louis +. Mortimer,
the promoter of the project, who is now
being closely chased by detectives In the
East Ex-Judge 5. A. Page and Attor
ney Lyden Evans, for the cheated stock.
holders, and District Attorney Milchrlst
! turned rapidly through the dozen OF
more ledgers and books kept by the cor |
| poration. and the result, roughly esti-
! mated. gives the following figures: To-
! tai amount received, Ss6,0Oo or this
sal, 600 has been paid to the agents
throughout the country. There are Sl3,-
600 assets In sight, 50, 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 L.
Mortimer as commissions, and OF TINS
$4,000 Mortimer must account 10 tne
indignant stockholders There IS ye'
$4,000 to be accounted for. ana Mortl-
mcr is supposed TO have the amount
with him. At least he did have II In
hand when he left the city on "pr ssine
Eastern business" Since July 30 this
wear Sl3. 600 has been taken in and Is de-
posited as a trust fund, subject 10 the
order of the Superior Court In which
the case ~ INV pendtne -.
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 oinciais
look upon him as the important man and
care nothing about the little eaten, ioi
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 ball mas
been fixed at 81. 600, which is looked
upon as an absurd bond for man under
the charge made against him II the OH
oiols cared to hold him. N. II. Tollman
. has also been rricasad on the same
I bond. In view of the fact that uuth
Q men have told all they know ABOUT the
: management OF the Nauonal oapiCa
o Savings. Building and Loan Association
Q of North America and are working
d hand.in-hand with the authorities foi
y the capture of Mortimer, 10 can easily
y be surmised that neither OF these mel
d will be prosecuted, but will be used a.
, witnesses against Mortimer, who ac
= cordinp TO Mr.. Downing, is zone man il
"a "a .thousund. N q "a -as -snsooth- as-a -ahe- best
70 Attorney Lyden Evans has been draw
y into this case by circumstances lie wa
9 at first called upon by Mortimer 10 de
fend certain little suits and knew noth
II ina nf the associations standing. ~
D, did more and more OF the firms lega
S. business until one day he cont teived tn
te idea that al was not straight Mr.. Nor
Of timer was in New York at the time an,
20 Evans demanded at the associations OF
Is fce in the Rookpry Building TO hav
r access 70 the company's books II he wa
g. TO be its legal adviser. 1t was then h
8, met Tollman. one OF the directors, an
OF he told him what he thought. Tollman
ID he saws. became frightened, and aske
h, what he could do TO protect himself, a
er he did not know the association was nc
IL straight. This started the ball rol in0
ne and a receiver would have been aske
OF for by Mr. Evans had not Uncle Sam &c
10 there first
" MORTIMER runs things with hig
T. !. hand" "-SAIf ME Fya8sueaitfs afd III
b. smash things and get ID the nahus "a VI
OF law before. He put his father in q
RI sartetary and treasurer, his brother-lr
en- law iF. o. WentwUrth) as president, an
I'd bad n man in Canada named Choai
whose pro>y lie voted regularly. 1t wa
a sort of family affair between them, an
Mr.. Downing, the president who
Mortimer claimed TO have ousteo c
ty the recent election, was MADE
tool Of as was also the vice preslden
by Mr.. TolIman. These men, DeileV
ri. rot nothing. We arc going now
rv. Geo what we can do for che stockho der
ast There Is $500 left in bank and ~, II
&c ont on loans. the real estate security Il
I've which we believe is perfectly goo
ris That IS about 20 per cent any ho'
tv We will next make al application ior
art receiver. and / believe the associate
est ought not TO be allowed TO go TO pieces
~ there g. n heap of money coming IN
the time. Since the money now in bal
rhs was tied up over Sl5,O0) has been
ere ceived. which the court W II take chsr
,ra- of as a trust fund, and believe that
ms. association that is in receipt OF =
the large amounts shouldn't be allowed
les. go 10 pieces.
the While tho figures got from the nrr
, be books showed that Ss5,C0O had been
.ure ceived, this does not cover the ent
fter scope of Mortimer business lie RAJ
and branch house for three months at Phi
sur- delphia. and of the proceeds it Is said
Teen account was made.
be- The company operated in nearly ev
State in the Union and It's agents W
ct'y in nearly every town The plan Y
rain the regu ar system adopted by build
orm and loan associations, only they fal
uare 10 make the usual loans when called up
tim and the stockholders money can only
,urs. accounted for the one way.
nint. Inspector Stuart said that he does
du- think a record of half the money
best ceived by the association was kept
anch stated that more than fifty Ietters
mar tanning checks, money orders, etc, Ia
envs ing IN amount from S5 to $50, a1d
will dressed to the association. were recei
by one mornings mail.
- 40 A.iss.ng Links.
4bootor-UofpO ia said IN y