New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-08-11
VICTIMS IN EVERY STATE.
OFFICERS OF A BUILDING AND LOAN AsSO
CATION ARRESTED
swINDLING CONCERN IN CHICAGO THAT e.
CURED HALF MILLION DOLLARS on
WORTHLESS PROMISES.

Chicago, Aug 10-Alfred Downing, president, ana
" H. Tollman vice president, Of the National Capital
Savings Building and Loan Association OF North Amer
lca were arrested to-day by PostOfoe Inspector Stew
art charged with using the mails for fraudulent pur
poses 1t is charged that the men who have boon
conducting this association have swindled thousands Of
people from every State In the Union and taken from
5000 900 to 5000 900, and given nothing In return.
There are still two hen at liberty they having disap
peared several weeks ago These two missing men, 10
is believed got away with most Of the funds.
For six months and letters have been received
from all parts OF the country by the pOsofce and city
authorities protesting that the National Capital Saw
mrs Budinq and Loan Association Of North America
was not What It's projectors represented IL 10 b. ana
that IL was collecting money and making no loans
Inspector Stewart has been working on the
case four months. lie found that the concern was
gigantic in It's reach, and had agents IN every ea'e N
the Union who were selling the $50 100000 Of stock
the company had for sale. The scheme was ndVeruscd
through these agents, who were sent circulars ana
documents showing the association TO be giltedeed
At the time Captain stuart took charge oil the case
Louis F. Mortimer the general manager and secretary
was apparently the responsible man and handled the
cash received In large amounts every Day Capuaih
stuart visited the company's office frequently dis-
eused as a lettercarer in order TO secure evidence
Several woeks ago Mortimer disappeared and today
after having waited in vain for his return captain
Stuart decided 10 secure the other visible members Oh
.ho combination George o. Ferguson, Of Lincoln,
Neb representing about sixty victims IN MS c'y'
was summoned here With his assistance the necessary
evidence was completed and the arrests made Three
vounr women clerks were taken into custody as VIII
nesses Mr. Ferguson in an interview said
The association was represented in our town oy
a local firm acting In good faith The people Oh
Nebraska are very much in favor OF the ouildlhs
and loan association plan, and the oners Oh thia
concern were snapped up quickly. II som SHARES
for 80 cents each, with payment OF all % each
month for ninety.slx months at the end OF winch
time 81 900 loan would be paid for Then there
was a membership fee of $50, 'appraisemenV
fee OF 500 and S45 for three months payment in
advance thus making S95 The concern made one
$500 loan that genuine, and this was luss
enough bait to lead others to invest and hundreds
sent their money to Chicago, and on the streng'h
of the loans they expected made contracts LOT
homes Stores were let and building begun The
money never came, and We wrote on here 10 learn
what the trouble was and finally Professor Elwood.
of the Wesleyan University, who was quite a heavy
investor came TO Chicago to investigate. lie visited
the Offices, and Manager Mortimer seemed 10 Dc
such fine business man and gave such assurances
that the loans would be forthcoming, that Professor
Flwood went back satisfied. But the money never
came. and finally I laid the case before the post
Office authorities
Inspector stuart and Distrct-Attorney Mlchrist
went over the books Of the concern and found that
seventeen legitimate loans have been made In as many
different States. These, it would SEEM we're made TO
allure other investors, in the Nebraska case No
record Of any other loan could be found although the
books show that money has been received nom
hundreds Of people, from the places where the single
loan was placed rough estimate Of the amount
of money received IS $4,000 in the year and half
the association has been in existence. The books OF
the association show 1t had agents In all the States but
tho most active were in omaha. Denver Des Moines,
Portland, Ore, Galveston, Tex, Olympia, WASH
incton. san Francisco and Minneapolis. These agents
transmitted hundreds OF dollars daily IN checks,
drafts money orders and by registered letters Until
within few months the concern, is said did heavy
business in Philadelphia but it appears that the
authorities there made inquiries which resulted In
the manager leaving.
The association was organized February 81. 1900.
with the following as officers: Alfred Downing, prcs+
dent; " H. Tollman. vicepresIdcnt; Louis F. MORT
mer general manager and secretary. Mortimer
seemed to be the leading spirit in the enterprise and he
az once Incorporated the concern with the long name
with n capital of S2O.OOO.OO0. Mortimer WIS good
manager and soon had the money flowing in at rapid
rate. Everything went smoothly until the closing Of
the Philadelphia branch when Mortimer came back
here and began wTangng with his business associates
Finally he oustcd Downing and elected one T. A. Went
worth president Downing threatened trouble, and
Mortimer saving that his i'll in Philadelphia,
left here suddenly and has not since been seen ~ IS
said that he took almost 100000 that the ASSOCIATION
had in banks here leaving about $1,000 Which
Downing had tied up by Injunction. Mortimer was
last heard OF on July 10 at No 7Oi Eiglthaye, New.
York civ President Downing and Vice Presid dent
Tollman both admitted that enormous sums had been
taken in but asserted they were not In It. LOU
alleged that they had never got more than small
salary out OF the affair. Downing added Mortimer
WINS the man who got it all. We started in what
bceved 70 he an honest building and loan business ana
/ believed Mortimer TO be an honest man. a. ! haa
known him in the insurance business Tor nunuer Oh
vears nrevious- Downing here from Peoria,
iii Vice President Tollman says he Is an artist ana
hat Mortimer WHO was a friend asked permission 70
ne his name as am Incorporation. lie consented and
received no money Tonlan added that several weeks
ngo he and Downing decided TO send out Circulars 70
Stockholders 10 see II some settlement could not %
rcoched They discussing these negotiations
ucSen arrested Downing and TOlman were held IN
10 600 bond, each by Commissioner lioyne. Botn haa
LAWYERS on hand and Tolmaa was quickly balled ou'.
Downing was unable 20 secure bondsmeh ana spent tl'
time in custody OF deputy marshal
At tho clearinghouse at No. 7Oi Eighthave- II
was said last night that no one giving the name Louz
F. Mortimer had stayed there.