The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-03-25

fortunate man In the country. Tho paper
was SO good on its face that it was easily
disposed Of collateral Some Of the banks
were eager to loan money on it. The dis
count was between 20 and 30 per cent. The
banks usually got per cent. They were a
good thing.
And all the time that SouthaIl was swind-
ling his friends he met them with a smil-
ing countenance and seemed the most happy
man In the world He was the last man
one would pick out as having conscience
heavy with guilt and future dark as
death hanging over him. 1t is most as
tonishing case all around.
1t was said yesterday that the men
who were most seriously involved in
the swindle had agreed to stand to-
gether and assist each other through
the difficulty. They felt that they
should do this in order to protect the
credit Of the enterprises in which they
are interested. If they did not try to
redeem their paper they feared other
concerns would be crippled.
SOuthaH Confronted.
1t was said yesterday that Southal
has confessed fully his guilt Nearly
month ago he was called to the of
flee of banker and confronted with
number Of his victims and several
lawyers. He was quickly Informed that
MS raScality had been discovered, and
was asked what he proposed to do in
the way of restitution. He saw that
he was cornered and confessed every
thing. He admitted that he had issued
false time checks since $780, and that
in the states Of Minnesota and Wis
consin alone there was over $467, 900 of
the bogus checks afloat.
He then agreed to settle the matter
ana was given an opportunity to do
SO, but he was unable to do anything
and at length his victims moved in the
matter. 1t Is thought strange by those
who are cognizant of the facts that he
did not get out of the country or kill
himself. His action in loading UP with
life insurance is taken as an Indication
that he had an idea Of making way
with himself after providing for his
family IN that manner
Kept Set Of Books.
1t is said that Southall kept an &C
curate account of every false time
check that he issued, and that If his
books are produced it will be seen how
much the sWindle amounts to. His
system Is said to have been the most
elaborate and to have kept him busy
tracing the ramifications Of his frauds.
1t was necessary for him to do this
in order to keep track Of his paper and
to know when it would fall due
surprise has been expressed that the
holders of the time checks did not
complain when it was not redeemed
But 1t appears that they did On sew
eral occasions when the paper had be-
come old and had musty odor hold
ers went to him and asked why it could
not be taken up. Southall would look
them In the eyes and tell them that
the expected appropriation had not
been made, but that it was sure to
come, and they went away ashamed
that they had questioned him.
An Awful Tumble.
Just about the time that the people
of the United States were trying to
grasp the fact that a man had arisen
among the common people who had dis
covered a system whereby he had been
able to steal half or three-ouarters
of q million dollars without ever any
body catching a glimpse of his game,
there was filed in the office of the CITY
clerk document so paltry in it's con-
ditions that one would never think of
connecting 1t with the man who Is &C
cused of having perpetrated what looks
like the most gigantic swindle Of these
days.
It was a contract, or lease, such as
the man of limited means has to sign
when he buys a few dollars worth of
IuIuilule WHICH ne INTENDS to try and
pay for on the installment plan. 1t set
forth that the man whose dealings on
paper had attained such q magnitude
that the whole country was talking of
him. ]. H. Southall. had, on Dec. 6, 1897
bought Of the Smith & Farwell com
pany, house furnishings to the amount
Of $59.25, and that he bound himself to
pay for the same at the rate of SIS
month.
There must have been something Of a
slump in the paper market during the
past few months, for the terms Of the
contract had evidently not been lived
up to, as it was only filed on the day
when the story of Mr.. Southalrs re-
markable system of financiering was
made public.
Banks Are Protected.
Although several banks hold the
bogus time checks as collateral, it was
said yesterday that they were protect
ed from loss. The losses would fall
upon the men who had put up the pa
per- These are principally the mem
bers Of the little syndicate to whom the
time checks were sold by Southau.
They will have to make good the sums
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