The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-01-13
A MORTGAGE FRAUD.
Serious Charge Of Swindling
Against Angus McAulay.
TAMPEs.Nc WITH AN ABSTRACT.
He 10 Arrested for obtainfng Ffrst
Mortgage lean when II Was Really
Second Mortgage


yesterday on warrant sworn out before
Justice Caldwell By Joshua ". Wrestling,
charging that he obtained 81 30 on false
pretsnses. Great secrecy Was observed in
al movements connected With the asfsIr.
even TO the extent Of appointing special
eon.tahls TO follow the prisoner around IN
his seemingly hopeless search for bonds
men.
Mr. Wrestling and his son. Frank h.,
have loaned considerable money from time
20 time on city property in The interest al
Eastern investors, and received large
sum last August from Philadslpliia cap
italixt. MeAulay heard of 10 and On
August 8 commenced negotiation for
loan Of 81 200 on the east forty feet Of lots
and 5 OF Deans addition to Seattle. Mr..
Wrestling. according 20 his information.
told McAnlsy that hs was willing TO loan
the money on improved property. free
from membranes. 10 the extent OF
a. p.r cent. OF its real value.
McAuisy IL said 70 have nodded assent To
what Mr.. Wrestling said and given the
information that the property In question
Was owned by his brother. John r. Nc
Aulay. bu. that he had general power of
attorney from him. He showed this
ing power to the holder 90 mortgage the
property. II is claimed that McAuiay then
declared that the loan would be the only
inonusbranes on property well located and
bringing rental of so month. Franz
Wrestling went ont with AcAulay - In
stsct the premises. and found that the
property would stand valuation OF
from 81 go 10 5000. lie reported to his
a q - -. 81
require an abstract before passing the title.
On the morning Of August q McAuiay
brought in an abstract that had been con-
tinued up TO date BY G. r. Whitflesey. the
ahstractor. Mr.. Wrestling examined IL,
page by rage. and says that there was no
record of any kind To show that there was
mortgage on the property. IL is Gus
to.nary for attorneys 10 examine titles by
inspection of certified abstracts and as the
abstract nurported 10 contain ali instru.
ments flied with the auditor of King
county. Mr. Wrestling gave certificate TO
the effect that the property was unincun-
bcred so far as the abstract gave evidence.
lie claims To have then asked McAuiay
If there was any insurance on the property
and, having received negative answer,
said that il would be necessary TO have
and tho policy made payable TO the
mortgage. McAniay attended to that
part OF the affair immediately aud OBJ
tanned a policy for 81, 500 in the Reading
Fire Insurance Company. of which Young
& Jacobson are agents. When this was
placed in Dir. Wiestling's hands he asked
his son TO draw up the note and mortgage
There can be no doubt about what kind of
4 fer in.
semi-circle across the top of the paper
are the words: First mortgage" then
follows the writing as to amount, interest,
etc. The mortgage that accompanied
this note says that il lis intended as a
first mortgage To secure payment of
81. aDn, " and is signed John +. McAuiay.
by Angus MoAulay," according to the an-
thority of the general power of attorney.
After McAulay received the money he
departed. and the Wiestiings sat for mo-
ment thinking OF the giit-edged loan they
had made. Some time afterwart, it Is
claimed. MeAulay borrowed the abstract
from Mr.. Wrestling and has never re-
turned it. Last Thursday Mr.. Wrestling
met Mr.. Tremper. Of the firm of Osborne,
Tremper & Co. on the street, and while
taking with him was asked the question:
u
first mortgage pa
Mr.. Wrestling said that he certainly did.
Mr.. fremper said that there was certainly
another mortgage Ia favor of the Lombard
Investment Company Tor 81 500 of a pre-
yious date. Mr.. Wrestling said that there
was no such instrument IN tho abstract
when he had it. and that McAulay Dor.
rowed the money on the understanding
haF fhssy fab
Its title. SIR. Wrestling hurried 10 the
office OF The Whittesey Abstract Com.
paay and found that Mr.. Whittse-
sey had handled the abstract himself aud
MAS certain that the LOMBARD investment
mortgage was iuciaaed when IL .eGt has
hands. Mr.. Wrestling Was then informed
sha; this was NOT the arst case wherein
MeAuiay had borrowed money on mon
erty. and when tho abstracts we're lnsestl-
gated AZ appeared ~ IT certain transfer.
had been removed. Mr. Wrestling imne-
diatsly consulted his son. aud at his re-
quest Meauiay went 10 Mr.. Wiestlins's
office. There was quite an exciting
scene. in which MeAulay was told
IN plain language what was wrong. and
the demand made for additional security
lie agreed. il is said, 20 do what he could.
aud said that be had heea expecting
money from his brother To settle the mort.
gage. The on!s thing ne could do was 10
turn over forty acres OF land IN southern
Oregon. worth $50 an acre. Frank West
ling told him shat be had lied so much
that he did not dare take his wor,i ON any.
thing, even the Value OF land aud wired "a
reliable attorneys IA oregon respecting IN.
valuation. The reply Vas. Worth 50
an acre"
Tho testimony when il comes ou. ga
Justice Caldseil's court viii be Ia aha
effect that McAulsy confessed that he
knew the mortgage had been taken out Of
ths abstract, but not by himself. and tina,
De sot The money by lie simply because
lac had 10 have IL II will also lie shown
that McAalsy said the abstract was in the
possession 81 man named Harry Wilson.
tat when u same - telling who nc WAS ar
pTeliaesag she abstract, be would not or
could not 30 IL. Frank Wrestling told him
he MAS willing thai he should have time l.,
straghten cut the matter and the onlv
restriction on als liberty would BE a nran.
10 be paid BY MeAalay hisnsels. ahose
duty woaid bs 80 keen track Of him.
Wrestling said he did not propose G., have
MeAalay skip the country. MeAusay ob.
ieetea 10 the expense AMI asked 10 ho
given unrestricted liberty while DO wAs
trying 30 settle the matter. lie also referred
10 the sorrow is would bring 10 his Young
wife - have him diSgracea. AsAsors Of
COMPROMISE iienry kriega VAS called n a,
special constable - Iook amer McAuisv
Thursday pight Yesterday tAa matter
Vas lad before tie yrys.eSuttne atf,-wsV,