Semi-weekly register. (Brookings, Brookings Co., S.D.) 1894-1898, 1894-11-28
MILLION AND A HALF SWINDlE.
Sensational Disclosure Follows a Yank.
ton Loan Co. Failure

ton Loan GO. Failure
Foreigners and Eastern People Beaten
by Bogus Securities.
A dispatch from Yankton to the
Associate Press says that the biggest
financial sensation in South Dakota's
history has just come to light in the
collapse of the land and loan firm of
Pierce, Wright & Co., announced on
Friday. The failure was brought
about by the discovery of forgeries
perpetrated in issuing school bonds,
tax sale certificates and other secur;-
ties through the London branch of the
house. Although Pierce had 5000 900
worth Of property here, it has all been
transferred by mortgages or trust
deeds, and a careful search failed to
reveal dollars worth of property in
his own name. No one here is in
volved in his downfall. The frauds
thus perpetrated will probably aggre-
gate 81 100000. The firm of Pierce,
Wright & Co. is composed wholly of j.
II. M. Pierce, Mr.. Wright having
withdrawn from it some years ago.
The firm" has had Offices at London,
Eng; Spokane, and at Holyoke. Colo,
and has done business in all those
places. The principle office Of issue
has been at Yankton, which has also
been Mr.. Pierce's place of residence.
The London Office was the place where
his various issues OF fraudulent papers
were negotiated and turned into cash.
Mr.. Pierce has dealt largely in school
district bonds and tax certificates.
These have been generally of ficti-
tious character, being manufactured
by the wholesale and forged or ficti-
tlous signatures attached, together
with seals, verificatiOns, etc. He
seems to have found a ready market
for his bogus paper, probably through
the good standing of his London house.
Who is responsible for the various
acts of forgery is only matter of con-
lecture. Perhaps Mr.. Pierce did some
OF it or did none of it. That it was
done there rests the evidence Of the
fraudulent paper. In his school bond /
issues he has covered the South Da-
kota counties of Yankton, Bon HON.
me, Hutchinson, Turner, Clay and
Union, so far as is known. The busi-
ness has been going on many years.
A SAMPLE OF THE FoRGERIEs.
The last school bond to come to
light is dated December /, 1898. 1t
purported to be the bond Of independ-
ent school district No. 2. of Bon HON.
me county. 1t was for the sum of
S25, 900, payable to j. P. Crennan, who
died several years before it was issued.
w. Fl. Brown, of Yankton, is the al
legged notary, who attested the docu-
ment. An opinion as to it's legality
is attached signed Gamble Bros, per
H. S. Gamble" The firm of Gamble
Bros. was not in existence at that
time and III. S. Gamble was never a
member Of the firm. The signatures
are forged. 1t is guaranteed by
Pierce's London house. This paper
was sold to English parties and has
recently been made the subject of in
vestigation by r. Mallinson, of Texas,
an Englishman This is given as a
sample of his work. The aggregate |
amount of fraudulent school bonds
and tax certificates is not known, but |
is very large, and there are in addition
numerous fraudulent mortgages,
which have been palmed off upon I'M
suspecting Englishmen.
FLoATED OVER A MILLION.
1t is the opinion of gentleman in |
a position to know something about |
the business that Pierce has floated |
from 81, 100000 to $1,500,O0O worth Of
this manufactured paper. What he
has done with this money has not |
been argued out. He has built extern
sively in Yankton, some of the most
substantial Improvements in the city |
being the result Of his investments.
He has lived extensively, too, main
tanning an establishment here and |
one in London. He has put $4,000
into the grade and right of way of the
Yankton and Norfolk railroad, though
there is a belief that the money for
the railroad work was not a norton of |