Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1900-08-02
CAUSED BY BAD LOANS.
Warrant for Ia Arrest OF u Heavy
Cattle DeaIcr-An Alleged
Second GiIlctt.


Kansas City. No., July Ca war.
rant has been issued for the arrest OF
Edward L. Swazey. charged with in.
ten to defraud by selling to- the Third
national bank of Springfield, Mass, a
mortgage Of 81 ,259 ON 261 heed Of cat
tie owned by j. FL. Kenney. of Hemp
| hill county, Texas. 1t is alleged that
Sw;izey represented that the mortgage
was a first lien. whereas it was a sec
ond lien. If true. the operation is
identical with those pursued by Grant
Gillett, the Kansas plnnger, who mort
| gagged cattle to the mount of over q
million dollars. Gillett crossed to old
Mexico, where be has since resided.
According to a report from the of.
fee of the Bankers and Cattlemen's
/ Protective association, the Swazey's ir-
Irregularities approximate $4,000. Tn
til the time Of its financial collapse.
three months ago Mr.. Swazey was =
member of the local commission firm
OF Laid, Penny & Svvazey. The firm
did a general Cattle commission bust
ness at the stock yards.
The loss is said to be generally dis.
tributed amor G banks, son of them
III the east. SC that il is not heavy on
any one person or concern.
Swazey is we'll known in Kansas City
and through the cattle country west
of here, having been in the business
for many years. lie is said to be on
board the steamship H~erlnlse, sailing
for Buenos Ayres. South America, hav.
ing gone on board July 8. Just two
hours ahead of Detective Kirk, who
followed him. from Kansas City to New
York. armed with Il warrant which
was issued by the authorities here.
At the time of the failure of the
cattle firm of Laid, Penny & Svazey,
it was impossible &c discover the
anount involved, especially as the
company did business over such a
wide range of country. Three days af-
terward inquiries began TO come in,
and simultaneous reports of the e
tai, as well as the physical collapse OF
the Junior member of the firm.
Thomas L. Lsdd, senior member OF
the firm, makes the following state
ment
II do not know the present where
aborts of MI. Swazey, but have beep
HI III = boA1 II S+NCAtt@ ~ - ~
BILE authority, that he has left for
South America. If 1t is true, I can not
account for his departure. I do not
believe Mr.. Swazey has done anything
criminal. As far as we krcw at pres
ent his books are all straight, and we
have no reason TO suspect that he has
been in any way dishonest with the
firm.
"Mr. Swazey was the financial man
cf the firm. He handled all the paper
and had exclusive control of that de.
partment of the firms hltsiness. In
the latter part of June we discovered
that we had become overloaded with
paper, and it was then that Mr.. SwaZey
Informed us of certain big leans made
in Oklahoma which proved to be bad.
This was a she TT time before his mind
collapsed. which I believed was caused
from worrying over these bed cans.
His failure to- inform US of the threat
cned financial crisis was possibly due
to his proud disposition, rather than
any intentional wrong.
"Soon after Nh. Swazey suffered the
collapse of his mental faculties he was
taken to Chicago. l later heard that
lie had been placed in an asylum in
Maryland"
The Journa to-day says:
later developments in the alleged
enlbezzlenIent of E. T.. Swa2ey indi-
cate that he h;s been operating on a
mnch larger scale tEan was at first
supposed, and hal the alleged fraud
may run up into the hundreds of thou
sands. Stockmen and others who
know the status of the case compare
lively well, say that other arrests will
follow il Swazey is taken.
attorney L. C. Boyle, who is prose
cutting the case, refuses 10 make 8
statement, but promises startling de-
veiopments in the near future"
SHOW TRAIN WRECKED.