Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1893-05-04
HE MADE LOTS OF MONEY.


The dispatches yesterday contained
Information Of the arrest at 81. Louis
OF ID. +. Schwartz, who is wanted at
Port Townsend, Washington, under q
sentence for ombezzlement. The per.
son referred TO IL Benjamin f. Swarlz,
who was known SONS five years ago
rs Speculation in Salt Lake real estate,
Mt which no made considerable money
He was drummer for n oroc H.
cry and glassware house at San
Francisco, and NJ such travelled
over the Pacific coast. While working
Utah he made Salt Lake his head
quarters, selling 10 dealers In outside
cities and towns, though no did very
little In his line In Salt bake, his trade
being mostly with smaller customers.
lie was shrowd In business, and
Instead OF wasting his money as many
In his line do, no saved up snug
sum, which he Invested In Salt Lake
lois. This was just ut the outset Of the
boom, and when the latter was at III,
height he sold out at n handsome
profit.
lie was thus provided with con.
tidefable sum OF money and removed
to Washington Territory, taking with
him nls wife whom he had just
married and who had been teacher
Ia California public school. At
That time Washington was Ia
Hood OF prosperity, aud on tho
way 10 statehood. tie made mo o
profitable speculations there, and coon
became president of the Port Towns
end National bank. When Port Towni-
end began to collapse from the boom
he sold his interests there, and SOON
blos0mcl out as president OF the Poit
Angeles bank. There no enter, d
on his dashlng career. ovtr
year ago his bank failed and he was
arrested and convicted Of embezz!t.
ment and sentenced 10 eighteen
months imprisonment. Before being
put In Jail hr escaped. He took HIS
wife and child and was not heard Of
again on the coast until his arrest at
~. Louis. He had hoen travelling fOt
a Chicago glass company. He II now
held In jail, awaiting removal by the
officers 10 the state OF Washington.
Tho following dispatch regarding
him came from Port Townsend:
Schwartz came 10 Port Angeles four
yearo ago aud organized thu Flrst Ma.
tional bank. Subsequently ho had
trouble with the stockholders and was
discharged. Schwartz then organized
another bank and made himself presl.
dent. He enlisted several moneyed
men In the enterprise anu was appar.
emily doing a prosperous business. The
bank loaned out considerable
money on notes. In dealing with
farmers and non.buslness men, when
the notes Were paid, Schwartz would
give holders hia personal receipt, take
tho money and retain the notes. BY
this method he would koop the notes
In bank as bills receivable aud
pocket the money. This practice was
In vogue several months before II was
discovered, when an examination OF
the books disclosed M cmbezzlement
q $1,000 or $4,000. Schwartz was ar.
rested and convicted on January 25th, |
1862, and sentenced to eighteen months |
In the pcnitentiaty on one charge.
Pending an appeal TO the Supreme |
court he wRs detained In jail ut Port |
A ngeles. On October 2sth, two |
days bsfore he was to be- taken TO the |
he escaped from jnil |
whom the iallor's back was turned. |
sheriff Morse OF Port Angeles has left |
Tor 81. Louis with requisition papers.
Schwartz had Influential relatives In |
where, In 1868, he en-
cred the United States treasury de.
partment and remained fifteen years.
He went TO San Francisc) lately aud |
married. Virginia Narcotics, u graduate
n Mills Seminary.