Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-08-26
Patrons Start Suit Against
Council Bluffs Concern Called
a Trust Company.
CRIMINAL ACTION MAY FOLLOW
charaes That the Promoters Are Con-
Quoting Business Without Authority
Arc Made and Warrant Has Been
issued for Observation-Disclosures is
Asked.
,eo,al tn Times-Republicar,

Special to TimeS-RepupHcaH>
Council Bluffs, Aug. 26.-As result
of the attachment suit commenced
Wednesday against the Northwestern
Trust Company, by Frank Feldhaus'
one Of its contract holders, NUMBER
of those who have had dealings with
the concern joined yesterday in civil
suit for the appointment OF receiver
and criminal proceedings against the
officers. Alex Buchanan, secretary OF
the company, was arrested on q war
rant for conducting a building and
loan business without authority from
the state of Iowa.
Peter B. Jacobs, the president, will
be placed under arrest today, and
date for the preliminary hearing for
both will be set.
The scheme under which the North
western Trust Company has been
operating is said to be similar to the
methods en.tloyed by the "get-rich-
corporate existence. and Buchanan
and Jacobs are the only persons known
to be associated with 1t. The former
lives at Omaha but has been coming
over to Council Bluffs two or three
times a week to get the company's
mail. Jacobs formerly lived near Min
den in Pottawattamie county, but is
now on farm near South Omaha. The
head office in this city, located in the
Wickham block, has virtually been
closed for six months.
Purchase Of Homes.
The business of the company con-
sisted in securing monthly payments
from it's contract holders. agreeing to
furnish them in return with money for
the purchase Of homes, to be paid back
in easy installments. So far as is
known, there are none who have come
into possession of homes thru this
means, while great many have been
paying in their regular dues with the
hope of ultimately receiving the prom
ised benefits. Those who did this are
scattered all over Iowa, Nebraska,
South Dakota and other states. The
concern Of late had not been doing an
extensive business, but at one time had
over 1000 patrons on its paying list.
AT one time the Northwestern
Tru ompany was organized in Me-
braska and had headquarters ineOma-
a. Its business, did not comply with
the laws of that state and it was cons
PEELED to cease operations there The
office maintained by Buchanan and
Jacobs in the Wickham building here
has not been frequented by them to
any extent for several months. They
got the mail containing remittances
from contract holders at the postoffice
and took 1t to Omaha, where until re-
Gently they had room in the New
York Life building. No permit from
the Iowa secretary of states office
was ever obtained, 1t is said.
The petition for receiver, filed in
district court, charges that the officers
of the company have wholly failed to
carry out any conditions named in the
contracts and are making preparations
to defraud the petitioners. 1t is claim
ed that the property of the company
really belongs to the contract holders.
The request for a receivership will be
day.
Postmaster A. S. Hazelton has re-
ceived from the postal department a
request for a copy of the contract used
by Buchanan and Jacobs in carrying
on their business. He will send one to
Washington, and II the plan Of opera
ton should be found to be in violation
of the federal laws prosecution for
improper use Of the mails will no
doubt follow.