The morning times., 1895-07-11
Borrowers PlaGked First by One,
Then by Another.
HOW THE GAME is WORKED
Discovery of a New Method of Roping
inthe Unwary y-Syndicating Worth
less Property at Exorbitant Sums.
One of the Victims Made the Syn
dicate Disgorge So, 900.
A new phase OF duplicity is derivable from

tne TWO sHylock companies OF tins city.
The Capital Loan Guarantee Company
has come TO terms and has agreed to pay
up. Recently Mr.. w W Yennawine, who
is believed to be the soul of the Washing
ton Mortgage Company, returned TO town
and indicated his desire 10 settle on behalf
of his company. The claims were put in
the hands of the company by Messrs. RaIston
& Siddons and it is now more question
of amounts to be paid than the payment
itself.
The newly Indicated species of fraud
referred to has come about in this way:
An applicant asks one of the companies
for loan. The company appraises the
property, executes a trust deed and lends
500 and takes a note for $l1o for
month and thenceforward charges $11
per month for carrying the note. There
are of course, appraisers fees included in
these charges.
PLUCKED BY BOTH.
Some time after this, although the
security is perfectly good a dispute arises
between the borrower and the company.
He is told that they don't care to carry
the loan any longer, and all he can then
do is 10 go to the other company.
He goes, must Increase his loan, and
appraisers fee of So especially. In this
way it is plain that the borrower win be
flounderlng III the money mire until he has
paid small fortune in interest and eX
tensions, and viii still owe the original note
There is even worse case, in which
third party, money lender, got the
benefit of abouC all that was left 10 the
borrower. The latter surrendered his
company papers to the individual
Shylock. and when the latter made a good
sum of interest he turned his papers back
again to the company, and the game began
| again and was about TO be played over
again from Alpha to Omega and back
again when The Times agitation called
! a halt
| Things like these are apt to daZe ordinary
money lenders, for they have in them
| genius far beyond that of the Napoleon of
! finance in the thrty-third degree.
INDIVIDUALSHYLO : SETTLING
In addition 10 The complete surrender
| OF the two companies, the individual shy
| locks are coming in and sitting down at
the mercy seat of Judgment. One of the
money lenders who took a vacation when
| he was wanted in court, has written to
| The Times attorney, offering aud agreeing
! to settle one OF his most fraudulent cases
| All of his cases VIII doubtless he ar
ranged out OF court TO the benefit OF his
1
The shady trans icuon in money lending
and dipping the unwury are not confined
/ to the various classes heretofore given
uuenviable exploitation in The Times,
| There are spectators on large scale who
/ have swindled the confiding, and quite
! lately one Of them disgorged $4,000, aud
/ il was out OF court at that.
He had sense enough not to make a
defense. These skilIful gentlemen belong
to a fortunately and necessarily small
number OF real estate brokers on street
TWO CASES IN POINT.
Here are two cases which are vouched
for by the lawyer who took a hand in
rightiag the wrongs in the transaction: A
contracted TO buy a lot of land for 5000
He went to several friruds and said: Now,
| we can have q good thing in this If, say,
/ ten Of us chip in and Wen syndicate the
purchase for $500, the purchaser keep
ing the amount OF purchase to himself.
Before it is ncCes saTy for him to complete
! his contract he has gathered together
$4,000 ont of which he pays $500 TO the
seller and on the transaction he is $4,000
to the good He, of course, takes the deed
to trustees representing the syndicate.
! When the members OF the syndicate discover
the fraud, perhap they get their money
| back-perhaps they don't
A transaction involving the CO TO such
a speculation OF SSU .OUU was recently Idld
bare in this attorneys office. The actual
price paid for the property was $40, 600,
but it was syndicated for $3.50 900.
All went well until the speculator got
q letter in the morning to the effect that
he must come to the lawyers office in the
afternoon prepared TO pay to one of the
victims the cheerful sum of So 600. 1t
was paid
CONFUSING THE RECORDS.
The special success of the speculation APP
pears to be in his ability to confuse the
records after having taken men into his
confidence. The thing is worked like this:
The deed of the property to the trustees
goes on record for instance, on the 1st of
| July. The deed of trust securing the original
venture, has already been on record a
month prior to that time.
A second deed OF trust which is really
for the benefit of the syndicator, but os
tensibiy in some other persons name, does
not go on record until later time; SO that
the transaction, 80 far as the records ap
pear, is SO disjointed as not to attract the
attention of the people most interested.
1t sometimes, however, comes out anC
then the speculator must come to time
or get u black eye before the public; ol
they get a decisive letter in the morning tC
the effect that they must settle before
sundown.