The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-04-27
Port Angeles Fugitive Ex-
Banker in st. Louis Jail.
THE SHERIFF GOES AFTER HIM.
Rehearsal Of His Misdeeds and How
He Came to Be Captured.
tor Wasson's Statement-The RosIyu
Robber Suspect Boand Over-Colville
River Overnows Its Banks.

The bunko banker. Benjamin F. Schwartz,
formerly of this city. has been arrested in
st. Louis. where he is now held in Jail
awaiting requisition papers. The Posr-
INTELLIGENcEB proved the medium
through which the arrest was made. Some
two weeks ago In correspondence sent
from the Chicago bureau of the Posr-IN-
TELLIGENCER it was learned that Schwartz
was in Chicago, dressed well, smoking
cigars and was living at the Palmer house.
Sheriff Morse at once began to investigate.
kilograms were sent to the Chicago
chief Of police, which gave as q reference
the correspondent of the Posr-INTELLr-
GKNcER Schwartz was located in Chicago
on April II through the Posr-INrELLlGEN-
GER. as stated. That day Chicago's chief
OF police telegraphed to Sheriff Morse for
full information, so as to swear out a war
rant. which was furnished. In the mean
time Schwartz, from some source, was in
formed of impending arrest and suddenly
skipped from Chicago. but he was later
located In st. Louis, Mo-. and there ar
rested yesterday by the chief Of police Of
that city. Tomorrow Sheriff Morse will
start for Olympia for the governors war
rant. being detained today owing to the
burial of his father. In two weeks
Schwartz will be returned to serve out his
sentence.
The public is fully informed regarding
Schwartz and his operations in this city.
He was by all odds the boldest swindler
that has ever appeared in this city. Com
ing here with scarcely any money. he at
once began stupendous operations, organ
izing the First National bank as his first
venture. In This his smooth tongue in
duced others to furnish the money and
elect him as president. Fortified with this
standing he began to speculate in real
estate, street contracts, water and electric
light franchises, until at an opportune
hour the officers of the bank began to in
vestigate, when it was found that for the
good Of the bank Schwartz should be re-
tired. This was promptly done on April
IA. 1891. Schwartz was then known to be
entirely stranded, but he hustled around.
borrowed few dollars here and there,
when he organized the Bank of Port An
geles with "capital of $4,000" It was
suspicioned that the ''bank" was Schwartz
and that Schwartz was the 'bank." He
maintained, however, with much effront-
cry that he was backed by . syndicate Of
San Francisco and other California capi-
talists. Not many of the citizens of Port
Angeles gave him their deposits, but
enough was given 80 that he was enabled
to make pretense st business. He
would loan money and when it became
due would give receipts against the notes,
pretending that the notes were lost. All
the time he was either using them with
other bankers as collateral or else had
sold them. Thus his operations con-
tinued for fourteen months, up to October
8 last, when he was compelled to suspend
business, being unable to meet the de-.
mands by checks.
A superficial examination showed that
his entire operations had been fraudulent
and that there was no redeeming or miti.
eating circumstances that spoke in his be-
half. He was arrested for embezzling
trust funds a. the treasurer of the West
ern Washington Improvement Company,
but owing to technicalities got clear. He
was next arrested for the embezzlement of
a note and mortgage, the property of M.
w. Gay. He was arraigned. tried and
convicted. He made . great fuss over
this, saying that he was being prosecuted,
but the evidence was overwhelming, all,
in fact, being in his own writing and rep
reservations, which he could not deny.
Schwartz was sentenced to only eighteen
months in the penitentiary, which was re-
garded as mercifui and light. His attor-
ney at once gave notice of appeal, but on
the night of December % last he made his
escape, tho jailer claiming that Schwartz
ran out of the door while he was putting q
stick Of wood In the stove. He ran in the
darkness, and q little investigation showed
h. CzL
had confederates. Many theories were ad-
vanced. but the one mostly believed was
that he had at once gone aboard a vessel
bound for San Francisco or taken passage
on fishing schooner for Victoria, thence
east on the Canadian Pacific.
However this may be, the boldness of
the convicted felon in going to Chicago,
there mingling with his feilow-men in
public places. is only another evidence of
his utter carelessness. He believed that
he was secure; that no such fate as the
penitentiary would overtake him that his
crimes were but mistakes, which would be
forgotten and overlooked as soon as he
was away from his victims and the scenes
of his bold operations. In this, as in all
others, he is undeceived, and can but be-
gin to realize that the way of the trans
gressor is hard"
CHICAGO, April 26.-tSpecial. The no.
lice department here had what the average
Chicago detective would call q "picnic"
trying to locate Ben Schwartz. Of Port
Angeles bank fame. Acting on the
information published in the Posr.
IsrELLIGEscER, Sheriff Morse tele-
graphed on here and fugitive
warrant was taken out. Schwartz. how
ever, had taken fright at meeting several
Washingtonians and failed to show up at
his old headquarters at the Palmer house
as frequently as formerly. 1t was though.
he had skipped to Omaha. Sheriff
Morse was extremely desirous of
capturing him, as his dispatch to the de-
partment here must have cost at least $50.
This was. though. the fault of de.ec-
tive who wired that he had located
Schwartz. when, as q matter of fact, he
had not.
THE MOGUL sMALLPOx CASE.