Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1894-12-01
THEGREATYANKTON FAILURE
How J. 7. M. Pierce Got Away
With Two Millions.
He Arrived at LeMars From England In
1884 a Penniless Youtb-Got Ills
Start by Teaching British
Youth How TO Han
die Hoes.

YANKToN, 8. D., Nov. 23.-The SWIM
dies perpetrated on English capital
lists by j. 4. NJ. Pierce, the Yankton Ma
poleon Of finance, are simply astound-
ing, and involve nearly $4,000, 900.
j.. T. Nj. Pierce is charged
with having plated ne
titious townsites and of bonding them
for nearly $500, 600; with floating
forged and fraudulent school bonds to
the amount of 5000, 600; of hypothecat-
ing forged and fraudulent tax sale GER
tifcates to the amount OF 1925, 600; of
selling bonds on imaginary silver
mines; Of bonding tho Yankton, Nor
folk and Southwestern railway, which
is only partially graded, for 5000, 600,
and with other acts equally as fraudu-
lent. by which English investors were
duped,
His First Appearance.
In 1884 j. Il. NJ. Pierce, with scarcely
funds sufficient to reach his destination,
arrived at LeMars, from England. He
came ostensibly to learn farming, with
a lot of other young Eng!ishmcn, the
majority of whom were more fortunate
than he in having wealthy parents who
paid all expenses. Pierce, who is Pc
culiariy shrowd, and who has since
shown himself to be wonderfully reck-
less, soon abandoned farm life and pro-
cured work in u livery stable belonging
to Mike Madden, another Englishman
who lost his entire fortune. and who
Is now setting type in II Norfolli,
Neb., printing office. Pierce formed
the acquaintance Of c. ID. Maclagan, a
young Englishman OF means, but "a
lightw eight mentally. Together Pierce
and Maclagan bought W farms in Ne
braska, eighteen miles south of Iank-
ton, where they undertook to impart
the knowledge OF farming to young
Englishmen, who were induced 10 go
upon the farm through the influence of
the Maclagan family in England.
These boys paid for the privilege of
working on the farm from $500 to $500
q year. Pierce was ambitious and he
conceived the idea OF establishing a
brokerage office in Yankton for the
purpose Of floating American securities
on the English market and looming
English money to American borrowers.
After two or three years on the farm
Msclagan's mind became unbal-
anced and he was taken
home to England. 1t was then
found that Pierce had title to about all
OF the property that had moe belonged
10 Maclagan. Pierce's accumulation OF
wealth soon became apparent. He
married an excellent young lady, the
daughter of DIR. MacGregor, of this
city.
1t was at this time, or "a little later,
that Pierce announced that his aunt
had died and left him a large legacy.
(His aunt was a Miss Milward. n con
nection of the English needle manufac-
turers). He associated with himself
another E~nglishman named Wright,
doing business under the firm name of
Pierce, Wright & Co. The lankton
Office did o do a large enough
business. and branches were established
at Spokane, Wash, and at Holyoke,
Colorado. A large amount of English
was secured, and loans and in
we're made as Mr.. Pierce saw
Pierce now began to erect build
ings here. Union block was built at a
cost of $4,000, the Pierce hotel at n
cost Of sGC, 900, and a number of resi-
lences aggregating S25, 900 more. Then
his fancy turned to railroads, and he
to build the Yankton, Nor
q cost OF ST5, 900. The British losses
Australia frightened the English
from whom Pierce was
drawing funds, and the supply was cut
off.
This was the proper time for another
aunt to die and leave him a legacy. lie
was obliged to leave Yankton to avoid
creditors. He evidently secured finan-
cial assistance in London, where he has
been living during the past three years
in the most luxurious ease. About the
9Th of October last it is alleged that he
engaged passage on one of the Atlantic
liners, for himself and family, but the
steamship agent declares that but one
passenger came-presumably Pierce.
lie Becomes IA Napoleon.
Now comes the interesting part Of
the story, fresh details of which are be-
ing received daily.
Pierce was bound to become q high
roller and a Napoleon of finance ct all
hazards. In May, 1889, school bonds,
said to aggregate $500, 600. on school
townships in various counties of South
Dakota, were sold, some in New York
and some in England. Nobody seems
to know who issued these bonds. They
purported to be genuine, having the al
legged Endorsement of such reputable
men as $. A.. Boyles, W.. p. Dewey, jr.,
L. l.. Jackson and others, and
in the instance oof the bonds
supposed to have been issued
by school district No. 81, Yankton
oo,,,t,y tha ,aD,,1arstu ~ that. ;ca.,
was attested by the name of n. NJ.
Hills, county superintendent Of schools.
These bonds were negotiated by Pierce,
Wright a. Co., and interest coupons
have been paid regularly by that Arm,
On the ED of December last, school
bonds to the amount of s25, 900. or
school districts in Bon Homme county,
turned up. Their regularity was seem
ingly Endorsed by Gamble Bros, the
leading attorneys of this city, but
these, like the first Issue, are forgeries.
The Bon Homme county bonds were
made payable to John p. Crennan. a
man who died three years before the
bonds were issued.
The last mentioned bonds are now
the property Of the North American
Trust company.
A short time since. it Is said, a party
Of Englishmen arrived at Yankton en-
route to San Francisco. They had VIVA,
purported TO be a letter of credit from
Pierce to his Yankton house calling foi
$40, OOO. There was ne money on hand
and they got nothing, and will lose
their deposit with Pierce.
A week ago Mr.. McClosky OF Bel
fast, Ireland, arrived here in tho inter,
terests of himself and friends, who
thought they owned the electric light
plant and other property. They are
Investigating.
Fraudulent and forged tax sale cor
tificates said to aggregate SEES, 0O(
have been discovered as among the as
sets of certain English investors. Tt
some of these certificates the name o
a. b. Wynn, cashier of the American
State bank. has been appended as tes
tifying to their regularity.
Two years ago Pierce bought q piece
of property south Of the city for 81, 500
which Is worth, perhaps, $500. 1t ]
now a~scertained that two mortgage
have since been given or this property
for $4,000 and $4,000 respectively
This land Is now designated as an nd
dition Ia Yankton.
Union block IL now the property O
Maclagan, cashier Of the LeMars Ma
tional bank.
Hundreds of such transactions al the
foregoing might be accounted. but al