The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1905-02-16
Kenosha Man Pleads Guilty and
Takes Witness Stand
Against Partners.
TELLS WHOLE FRAUD STORY
The Methods of Securing "Assets" for
the Company are Described in De-
tail.-Cowe1l May Get off With a
Fine, Having Aided the State
From Fridays Dai1y.)

The case OF waiter Mai SHdAA OO'E0AA
of this city, jointly indicted with one
w. A.. Lowell, of Chicago, in the
s.vi1d cat" insurance cases, was called
for trial at Chicago Thursday, and
Cowe11 gave his former business as
sociates a fearful shock by turning
states evidence. Cowell pleaded
guilty and took the stand as a states
witness.
He told the whole story of the wild
cat" business from beginning to end,
and If is believed that his testimony
will be sufficient to convict the whole
gang. 1t is supposed that Cowell will
be let off with nominal fine.
On the witness stand Cowell told
the whole story of the methods used
in organizing the insurance" COM
panies. and the affidavits made by the
directors to give the concern some
kind of a financial standing. The
operations of the gang discount any
thing in the line of "high finance
ever attempted before in this part OF
the country.
The story of the manner IN which
the "assets" of the companies were
secured, as told by Cowell on the
stand, is an interesting one. CoWeIl
explained that ten or twelve atldav1ts
had been secured from friends OF
Lowell and himself in which the
friends. he declared, swore that they
had certain properties and stocks,
etc, greatly initiating the value OF the
properties, stocks, etc, to make them
appear large. These afidavits were
widely circulated, he said. Those IN
troduced in the court Thursday after
noon were signed by the following:
Thomas M. Bell, George N. Ellis,
Walter H. Cooper, Frank W. Bodie,
Joseph Perching, Fred G. Babcock,
Burt w. Pierson.
The affidavits were to the effect that
the signers we're wealthy owners OF
stocks and thousands of acres of inn
proved and unimproved lands. One
affidavit set forth that the signer was
worth millions of dollars, and others
modest1y mentioned that they were
worth 500, 1000 or more.
In his preliminary testimony Cowell
said the afidavits were fraud, but
he was not permitted to express his
opinion as to each affidavit.
One of the atlantis described his
land as being in Virginia, covered
with valuable hardwood timber and
free from incumbrance. Cowe1l said
the title to this land was based on an
old patent issued by the government
100 years ago, and that it is now oc-
cupied by squatters, who hold it by
virtue of occupancy. The title, he
said, was hope1essly c1ouded.
Similar evidence was given IN con-
nection with titles describing other
atlantis.
Perching sets forth in his affidavit
that he is the owner of 92,168 acres in
Stone county, Mo-, and on the banks
of the White river. He states that it
is desirable fruit and timber land
and worth from SIS to $40 an acre.
This title, Cowel1 testified, was
based on an old Spanish grant.
Bell in his affidavit to establish the
credit of the company states he is
member of the Omitted Fire Under
writer's association and that he is
worth at least 81, 100000. He sets
forth he has ESQ residence lots in a
suburb of New Orleans valued at $500
each; 200 resident lots in Omaha,
valued at $3.50 each; 100 acres in South
Dakota, worth $50 an acre; farm lands
in Michigan, worth $35, 900; farm lands
in Missouri to the extent of 10000
acres, valued at SIS an acre, as well as
other property.
Ellis, after the usual preliminary
announcement, swears he is also
president of the Peoples Insurance
company and that he has 100000
acres of land in West Virginia, at a
total value Of ST., 900, 900.
Assistant States Attorney Fake
brought out the statement from Cow
ell the titles had been in the name OF
man named Richardson.
Being questioned concerning Ellis,
Cowel1 was asked where Ellis had his
office.
SIN his hat, replied the witness.
"Did he have any assets?"
s'None except what turned over to
him"
"Do you know of any policyholders
who lost money as result of dealings
with the company operated by Lowell
and yourself?"
eyes sir. About twenty-five OF
thirty in Chicago is as near as can
reco11ect."
''Can you tell if any losses were
paid at all?"
''On1y what Lowell told me. He also
told me some losses had not been paid
because there was no money in the
treasury"
The witness stated the securities
consisted of worthless deeds and
titles presented to the atlantis for the
sole purpose of making the issuance
Of the ahidavits possible.
Cowell said it was with the aid of
the circulars containing the reproduc-
lions of the afidavits that Thomas