The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-08-11
People in Every State in the
Union Are Caught.
1T WAS A LOAN ASSOCIATION
The InstalIment Plan-One Genuine Loan in
Town Caught Hundred Suckers
The Officers" Under Arrest


mails for fraudulent purposes. It is
charged that the men who have been con-
Quoting the association have swindled
thousands of people from every part of the
union, and have taken in from 500 600 to
$3.50, 900, giving nothing in return. The
victims are found in all classes Of people.
From facts in the hands of the authorities
the scheme will parallel 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 postoffice and city authorities pro-
testing that the company was not what it
was represented to be, that it was collect
ing money and making no loans. Inspector
Stuart has been working on the case four
months. He found that the concern had
agents in every state in the union who
Were selling the SO, 600, 900 OF the stock the
company had for sale. These agents were
sent circulars and documents showing the
to be giltsedge. When In
spector Stuart took charge of the case
Lewis F. Mortimer, general manager and
secretary, was apparently responsible
man, and handled the cash received in large
amounts every day. Stuart visited the
ccmpany's Office frequently, disguised as a
letter carrier, in order to secure evidence.
Several weeks ago Mortimer disappeared,
and today, having waited in vain for his
return, Stuart decided to secure other
visible members of the combination.
George o. Ferguson, of Lincoln, Neb.,
representing aCOut sixty victims in his
city. was summoned here. With mis- assis-
lance the necessary evidence was com
pleted and arrests made. Three young
ladies were taken into custody as wit
nesses. MIR. Ferguson IN an interview
said: 1.-THE association was represented in
Lincoln by a local firm acting in good faith.
Nebraska people are very much in favor Of
building and loan associations, and the offers
of this concern were snapped up quickly.
Ii sold shares for fifty cents each, with
payment for ninety-six months of
$1L05. At the end Of the time the 81 900
loan would be paid for. Then there would
be a membership fee of $50, an appraise-
ment fee OF so, S45 for three
months payment in advance, thus
making $50. 1.-The concern made one
enough bail TO induce others TO invest , and
hundreds sent money to Chicago, expect
ing on the strength of the loans TO make
contract for q home. Stores were let and
buildings begun. The money never came
and we wrote TO Chicago to learn what was
the trouble. Finally Prof. Elwood, of the
Wesleyan university, who was a heavy in
vester, came to Chicago TO investigate.
Manager Mortimer seemed TO be such
tira hr1si m nd uaU oh
that loans would be forthcoming, that Ell
wood went back satisfied, but the money
never came, and finally 1 laid the case be-
fore the postoffice authorities. Inspector
Stuart and District Attorney Gilchrist
went over the concerns books and found
that seventeen legitimate loans had
been made in as many different
states. These, 1t would seem, VERY
made to allure other investors"
No records Of any other loans could be
found, although the books show money
had been received from hundreds of peo-
pie in places where a single loan was
placed. A rough estimate of the amount
received is SIZE, 900 in tue year and q half
the association mas been in existence. The
books show the association bad agents In
all the states, but the most active were IN
Omaha, Denver, Des Moines, Portland,
Ore, Galveston, Olympia, San Francisco
and Minneapolis. These agents transmit
ted hundreds Of dollars daily in cheques,
drafts, money orders and registered let
tiers. Until within a few months, ii is
said, the concern did a heavy business in
Philadelphia, but it appears the authorities
there made inquiries which resulted in the
leaving.
When the association was organized
IL, 1880, the officers were Alfred
Downing, president; y. Il. Tollman vice
president, and Lewis (. Mortimer, general
and secretary. Mortimer seemed
to be the leading spirit in the enterprise
and at once Incorporated the concern with
a capital of so, 000 900. He was good
and soon had money flowing in at
a rapid rate. Everything went smoothly
when Mortimer came back here and began
grambling with his business associates.
Finally he ousted Downing, electing one +.
A. Wentworth president Downing
threatened trouble, and Mortimer. saying
his son was very sick in Philadelphia, left
and has not been heard of since.
1t is said he took about SIC, 0OO that the as
had in the bank here, leaving
about &. 200 which Downing had tied up by
injunction. Mortimer was last heard OF
July 10, in New York city. Downing and
Tollman both admitted enormous sums
had been taken in, but asserted
they were not sin it." Both alleged
they never received more than a small sal
AIRY out Of the affair. Downing added,
Mortimer got it. We started in what /
believed to be an honest building and loan
association. 1 believed Mortimer to be an
honest man as l had known him in the in
,urance business several years previous"
Downing, who came here from Peoria,
refused to talk further about the work of
the association. He is a rather poorly
dressed man and does not look as though
be had been sharing IN the enormous
profits. Vice-President Toliman, on the
looks extremely prosperous,
asserting he made nothing from
the association. He says he is an artist,
and Mortimer, who was q friend, asked
permission TO use his name as an incorpor-
ator. He consented, receiving no money.
He added that several weeks ago he and
decided to send out circulars to
the stockholders to ''see if some settlement
couldn't be reached" They were discus
sing these negotiations when arrested.
roilman admitted that since the associa-
ions formation he knew of SS1 900 having
been received.
Inspector Stuart said he was well salts
fed that both the president and vice-presi-
lent were 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
,ulk of it, and haven't the least doubt he
rot away with $l50.O00. If ever there was
| slick man it was Mortimer. / have gone
20 his office time and again disguised as q
etter carrier and seen him sign hundreds
II letters and seen him sign for hundreds
II fat registered letters containing large
mounts Of money, and he smiled sweetly
very time letter came In. He is clever |