The Farmington times. [volume] (Farmington, Mo.) 1874-1902, 1900-08-02
CAUSED BY BAD LOANS.
Warrant for the Arrest OF ueavy
Cattle Deaser--AR Alleged
Second Giiiett.

bhHhaA wy Mu.s July SN.-A war
rant has been issued for the arrcat OF
Edward L. SwRzey. charged with In.
tent TO dcfraud by selling To the Third
national hank OF Springfield, Mass, 4
mortgage OF 81 $50 on 26l herd af cat.
Gle owned hy }. II. Kenncy. Of Hemp
hill county. Texas. II is aliePrd that
Bwnzry rry resented that the irsurigage
WINS a first lien. whereas IL WIS acc
ond lien. II true. the operation is
identical with those pursued by Grant
Gillctt. the Kansas plungrr, who mort.
gagged cattle 10 the amount Of over a
million dollars. Gillett crossed Ia old
Mexico. where he hAs since rcrided.
According 20 a report ts"n the OF.
fer OF the Bankers eRd Catticmcn's
Protective association, the swazey's ir-
rrgulnriiies approximate S;0.O0u. TN
I'll the time ci It's financial collapse,
three months ago. Mr.. swazey was 3
Inemher OF the loCnl commission firm
% Lajd. Penny & swasct. The firm
did a general cattle commission bust.
ness nj the stock yards.
The loss l. said io bc generally dis
tributed amor hanks, snme OF them
in the east. 40 that II is not heavy on
any one prrson or concern.
SwaEey Is well known In Kansas City
and through the cattle country west
of herr. having been In the business
for many years. lie Is said io be on
bouTd the steamship llcrmasr, sBilins
for Huenos Ayrrs. South America. hav.
ing gone on board July .. inst two
hours ahead of Detective Kirk, who
followed hir, from RnuSas Ciiy 10 New
York, armed with warrant which
was issucd 10y the authorities here.
At the time OF the failure nf the
cnttlc firm Of IAdd, Penny & swasey.
II WINS impossible io di'covcr the
amount involved, especially as the
company did business OVER such a
wide range Of country. Three days nf.
terward inquiries hCgan 90 come in,
and simultaneous reports Of the men
tnl. ~ well M the physical collapse OF
the Junior mcinber Of IN" firm.
Thomas l.. Ldd, senior member OF
the firm, makes the following state.
meni:
II do not know the present where.
nbouts of Mr. Swazcy, but have bceP
inforIned.upon what feemS 10 be relia'
BILE authority, that he has left foI
South America. II II II true. I can not
account for his departure. ! do not
believe Mr.. Swazcy has dcnc anything
criminal. As far ~ we know Mt pres
ent his books nrc NIL straight and we
have no reason 60 suspect that he has
been In any wHy dishonest with the
firm.
"MT. Swazry was the financial mar
~ the firm. lie handled all the paper
and had exclusive control of that de.
partE:rnt Of tho firms huiiness. IT.
the latter part Of june W. discovered
that we had become overloaded with
paper. and II was then that Mr.. Swaycy
informed US 81 certain big lcnns made
In Oklahoma which proved 10 be bad.
This was n she ri timr before his mind
collapsed. which believed was caused
from worrying over these he'd loans.
fAlt W VI VIZ w WV. AHtfNl'
rnsd finnncisl crisis was possibly due
10 his proud disposition, rather than
any intentional wrong.
"Soon after Mr.. Swazey suffered the
collapse of his mental faculties he was
taken to Chicago. later heard that
he hsd been placed in an Hrylum In
Maryland"
The Journal to-day says:
later developments IN the alleged
rnbczzlenent OF =. l.. Swayey indi-
cate that he hts been operating on n
much larger scale ttan was at irSt
suppo' ed, and that the alleged fraud
may run mp into the hundreds of thou.
sands. Storkmen ard others who
know the statos Of the case compara-
lively well, H,y that other arrests will
follow n Swazey Is taken.
attorney T.. c. Boyle, who Is prose-
cutting the case, refuses iO make
statement. hut promises startling de.
vrlopments In the neir future"