The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1900-08-06
FRAUD
In Cattle DealS---An Okla
hOma Man Under
Arrest.
scripps-McRae Press Assn.

Scripps-McRae Press Assn.
Kansas City, August e-J. S. Scott,
a cattleman of Logan, Beaver county,
Oklahoma, has been arrested on a
charge of being implicated with e. L.
Swazey in defrsuding banks by mortg-
aging one herd of cattle several times.
The arrest of Scott was brought about
by the Bankers and Cattlemen's Pro
tective association, which proposes by
relentless prosecution to put an end to
fraudulent transactions in cattle
paper.
The warrant for the arrest Of Scott
was sworn out before Justice Jenny
last week by L. G. Boyle, attorney for
the Bankers and Cattlemen's Pro-
tective association. Mr.. Boyle Sc
cured a requisition for the arrest of
Scott, which was honored by the gov
ernor of Oklahoma. All the moves in
the case were made quietly and secret
ly. The papers were given to Detec-
tive E. d. Kirk, who went to Logan
and served them on scott. The detec-
tive telegraphed to Mr., Boyle yester-
day that he was on the way to Ksrs2s
City with his prisoner and would arr
rive Saturday night or Sunday morn
ing.
No suspicion attached to Scott until
after the fight and exposure of Swaz-
ey. Investigation was then made and
it was found, Mr.. Boyle says, that
Scott and Swazey were working to-
gether in the deals. According to Mr..
Boyle, Scott executed the mortgages
and Swazey, as business manager, ne
gotiate1 them and secured the money.
Altogether Scott is said to have made
seven or eight fraudulent loans by
which nearly $50, 600 was secured from
unsuspecting banks. The particular
deal which lead to Scott's arrest was
the placing of $40, 900 mortgage with
a Massachusetts bank and an So, S,OC0
mortgage with q New York bank on "A
herd of cattle which is said to to have
been switched from one county to an
other as the occasion demanded Mr..
BOYLE sal it was represented that
there were 12, 600 cattle in the herd,
and. although the whole immediate
county was secured only 415 could be
found. These were brought to Kan
sas City by the Bankers and Cattle
mems Protective Association and sold.
They brought only 81 900 and had
been mortgaged for $2s,000. All the
deals said to have been made by Scott
were made on December 20, 1899.
]. s. Scott has been in the cattle
business in the Southwest for many
years. and hitherto has borne a good
reputation. He is about 65 years old
and married. He has many rich and
influential friends in the East Mrs.
Scott inherited large amount OF
money some time ago, and there is no
doubt that hard legal fight will be
made 10y Scott for his liberty.
"Scoct and Swazey will both be in
dicted as conspirators," said Mr.. Boyle
last night. 1--WE have strong evidence
of Scott's guilt and there is but little
chance for him to escape. The case
was worked up thoroughly before a
warrant was sworn out for Scotts ar
rest. He was able TO produce about
one-fourth of the / 200 cattle be had
mortgaged twice. Scott owes different
banks total of about $50 900, secured
through cattle paper, and there isn't
single head of cattle to satisfy the
mortgages. The Bankers and Cattle
mems Protective Association proposes
to prosecute such offenders at any cost,
and make cattle paper as safe as any
other securities handled by banks"
Scott deEies that he is guilty OF any
fraud and it is understood he will con-
tend that he was an innocent victim
of Swazey. The warrant for the arrest
of Scott was sworn out in Kansas City,
because the money lent by the Massa-
chusetts bank on the mortgage was
delivered here.
Nothing has been heard from E. L.
Swazey, of the firm of Ladd, Penny &
Swazey, since his disappearance six
weeks ago. 1t is believed that he fed
to Buenos Ayr6s, Argentine Republic,