Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1891-08-13
The National Capital, Savings, Build
and Loan Association of
North America.
For Over a Year it Conducts a
Crooked Business in
Chicago.
Many Thousands of Victims in all
Parts of the United
States.

CHICAGO. Aug. 11.-Alfred Downing,
president, and n H. Tollman, vice presi-
dent of the National Capital Savings,
Building and Loan Association of North
America, were arrested today by Post
Office Inspector Stuart, charged with u.s.
ing the mails for fraudulent purposes 1t
is charged that the men who have been
conducting the association have swindled
thousands of people from every state in
the union; have taken in 100000 to
$3.50, 900, giving nothing in return. The
victims are found in all classes of people.
For more than SIX months letters have
been received from all parts of the coun-
try by the post office and city authorities
protesting that the company was not what
it was represented to be; that it was col
Letting money and making no loans. In
spector 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 S20,000,-
600 of stock the company had for
sale. These agents were sent circulars
and documents showing the association to
be gilt edged. When Inspector Stuart
took charge of the case Lewis F. Morti-
mer, general manager and secretary, was
apparently a responsible man and handled
the cash received in large amounts every
day Stuart visited the company's office
frequently disguised as a letter carrier in
order to secure evidence.
Several weeks ago Mortimer disap-
peared, and today, having waited in vain
for his return, Stuart decided to secure the
other visible members of the combination.
George O. Ferguson, of Lincoln, Neb.,
representing about sixty victims in his
city, was summoned here, ard with his
assistance the necessary evidence was COM
pleted and arrests made. Mr.. Ferguson
in an interview said: 1.-The association
was represented in Lincoln by
local firm acting in good
faith. Nebraska people are very
much in favor of building and loan aSso-
Citations and the offers of this concern
were snapped up quickly. 1t sold shares
for fifty cents each with monthly payments
for 96 months. of S11.05; at the end of
that time 81 900 loan would be paid for;
then there was a membership fee of
$50; an APP 5raisement fee OF $40; S45 for
three months payment in advance, thus
making S95. The concern made one $500
loan that was genuine, and this was just
enough bait to induce others to invest.
Inspector Stuart and District Attorney
Michrist went over the concerns books
and found that seventeen legitimate loans
had been made in as many different
states. These, it would seem, were made
to allure other investors No records of
other loans could be found although the
books show that money has been received
from hundreds of people in places where
single loan was placed. A
rough estimate of the amount received
is SITS, 900 in the year and a half the asso-
citation 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 MONIES, Portland,
Oregon, Galveston, Olympia, San Fran
cisco and Minneapolis. These agents trans
mitted hundreds of dollars daily in checks
drafts, money orders and registered let.
tiers. Until within a few months, it is
said the concern did heavy business in
Philadelphia, but it appears that the au-
thorities there made inquiries which re-
suited in the manager leaving.
When the association was organized,
February 81, 1890, the officers were: AL
fred Downing, president; N. Fl. Tollman,
vice president; Lewis F. Mortimer, general
manager and secretary. Mortimer seemed
to be the leading spirit in the enterprise
and at once incorporated the con-
Germ with a capital of $40, 100000
He was a good manager and soon had
money flowing in at a rapid rate. Every
thing went smoothly until the closing of
the Philadelphia branch. when Mortimer
came back here. Finally he ousted Down
ing and elected one F. A. Wentworth
president. Downing threatened trouble
and saying his son was very Ill in Phila-
delphia he left suddenly and has not been
seen since 1t is said that he took
about $4,000 that the association
had in the bank here, leaving about
$1,000 which Downing had tied up by an
injunction. Mortimer was last heard of
July 10 in New York city. Downing and
Tollman both admitted that enormous
sums had been taken in, but asserted that
they were not lin it, and charge that
Mortimer got it all.
Inspector Stuart said he was we'll salts
fed that both the president and vi"e
president are not so innocent as they pre-
tend. Both got badly bitten" said he,
but both knew all about the swindling
going on"
Downing and Tollman were held in
$4,000 bonds each by Commissioner Hoyne.
Both had lawyers on hand and ToIlman
was quickly bailed out. Downing was
unable to secure bondsmen and spent
the night in custody of the deputy
marshal. One Of the attorneys fer the
men said there was no doubt the concern
was rotten to the core, but he believed
Downing and Tollman were simply the
victims of Mortimer guile.