Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-03-09
PENSION CERTIFICATES
More Developments in the Investigation
Going On.
VsiaE Certificates ms Collateral for
Different Plans.

Some of the developments in the invests
cation now going on to determine the ex-
tent OF the practice OF borrowing money on
pension certificates expose outrageous i'm
| positions upon the pensioners.
Examiner Connolly, who has charge Of
the investigation, returned from Baltimore
| this morning, where he had been conduct
ing raid similar to the one outlined I'm
The Star several days ago. He raided two
| attorneys and captured eight certificates
in one place and three In another. He also
released from actual bondage an old PEN
sfoner who had been kept a prisoner for
hfteen months. The case was a particular
~ sad one. and shows to what ends the
money sharks will resort to fleece the poor
pensioners. Fifteen months ago a PEN
sioner, whose name is withheld, applied
to an attorney in Baltimore for a small
loan Ire was asked IL he had his pension
certificate with him. and he answered by
producing the document which recognizes
him as a ward of Uncle Sam. The attor-
ney took IL ard advanced the small loan,
adding he could come to his house and
board. Seeing other old soldiers there he
soon became member of the household
where he has been kept a prisoner for ff-
teen months, being permitted TO go out
only once every three months to certify to
his voucher, and directing the office where
TO send the check. When the check arriy-
ed the Shylock would compel him TO in
dorse IT, and then handing him one or two
dollars at the utmost, keep the balance
adding that the remainder was for his
meals and lodging. The soldier was eligt-
bic Tor the Soldiers Home in this city and
tried by every conceivable means to get
there. But the money lender. like n leech,
hung on to him and drained every cent he
could from him. His practice was to keep
the men and by feeding them and selling
old secondhand clothing to them virtually
draw the little money that the government
gave them each quarter According to the
testimony of this old soldier he would often
anal do ff,
ORDER to get n drink of whisky. Exam
lner Connolly had him released. and today
ne appeared al the pension office dressed
in a new suit of clothes and radiant
The examiner unearthed another and far
more dangerous scheme of defrauding the
pensioners than has yet been discovered.
In the examination Saturday of one of the
pensioners il was discovered that his GER
tifcate had been executed on the 4th day
of March and he had sworn to IL that day
before a notary public. This could not be
correct, since the certificate at that time
and for a week previous had been in the
possession of the pension office examiners
When closely questioned he dropped word
that put the examiners on another scent
Following up the clue. the examiner found
That in this city there was i'm operation a
company operating under the guise OF an
investment company which made IL a BUSH
ness OF Lending money to pensioners upon
their pension certificates. One of the VIC
tins OF this company was found this morn
ing and examined at great length before
lilt tAdNHlneT. Ills testimony was startling,
In reply to question he repeated several
times that he had never sworn 10 his GER
tlhcate wien II was executed; that the at
torney did not require il. and he did not
think he had TO do IL. lie was a poor ig-
norant colored man. and had been since
last summer paying this company enor-
nous rates of interest. In his frank ig-
norant manner he explained how he had
been directed TO the firm and how he had
explained that he wanted TO borrow SIS
The man told him that before he could
borrow any money he would have to be-
come stakeholder in the company. and
that II would cost $50 The shares were
Tor 500. but that was a little matter. The
pensioner explained that he did not have a
cent, and the broker said that made no
difference. as he would advance it This he
did, at the same time handing the per1-
sioner a little book. which. he explained
! he was to bring around every pay day and
pay In his assessments. He took the pen
sion certificates for collateral and kept
them.
There are great many cases of this
KIND, and the department is endeavoring to
get the evidence In such shape that when
the time comes to arrest the alleged Of
tenders there will be no doubt of the
strength of the governments case