Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1920-06-30
Chicago Companies Organized
BY Former Omaha Man, Now
In Los Angeles, Facing Sc
rious Financial Difficulties.
INTERLOCKING DEALS
FEATURE OF BUSINESS
Liabilities of Two Concerns
Involved $4,000, Assets
A,50O-Attorney Davis Re-
mains to Face Muse.

Echoes of the financial difficulties
of Peter Elvad during his career in
Omaha, are being heard in Chicago
III connection with receivership
which has been appointed for the
Continental Engineering Construc-
ton company and the Fidelity Sc
Curities company.
Charles Z. Davis. who was an at
torney with Elvad during the latter's
connection with the Bankers Realty
Investment company in this city,
was president of both of the Chicago
companies at the time one of the
directors forced receivership.
Davis is still in Chicago, facing the
music. Elvad left Chicago last
month and is now in Los Angeles.
According to reports from Chi
cago, operations of the two windy
city enterprises were similar to
those of the Bankers Realty Invest
iment and North American Hotel
companies of Omaha.
Named as Receivers.
The Great Lakes Trust company,
Chicago, was appointed to serve as
receiver for the Continental and
Securities companies which have
suspended operations. Assets are
said to amount to $4,000 and liabili-
ties are Sl30,000.
Mr.. Elvad left Omaha year ago
last month to engage in business in
Chicago. A year previous to. his
departure he was instrumental IN
the organization OF the Continental
Construction company, placing a
Sunan named Simpson in charge as
IINesident. When Elvad reached
Chicago he displaced Simpson and
Charles Davis was named as presi-
dent.
Stenographer is Secretary.
Davis was a member of skele-
ton organization which Elvad took
with him from Omaha. Others
were William and Charles Johnson,
brothers of Mrs. Elvad; Arthur
Gross, lawyer; F. w. Fitzpatrick,
architect, and Miss Florence Nash,
stenographer. Miss Nash was ap-
pointed secretary-treasurer OF the
Continental company soon after she
arrived in Chicago. Investigations
of the two Chicago companies have
thus far disclosed that Elvad was
not an officer of either, but that he
furnished the brains and DAVIS
fronted as president
One of the transactions which the
receivers are endeavoring to recon-
ciie involves rote given by DAVIS
for $4,000 of stock. of which S25,OOO
was said to have been disposed of
in Nebraska. Some of this stock
was exchanged for notes which were
held against the Continental COM
pany.
Interlocking Transactions.
The Continental and Fidelity COM
panics, which were closely related,
carried interlocking transactions.
One company promoted bank build
ing companies and the other fur
nished the plans and usually OBJ
tanned the contracts. In the case OF
a new bank building in Havana, ILL.,,
Mr.. Davis, as president OF the tidel-
ity company, promoted the financial
deal, obtained building contract in
his own name and then sublet the
contract to the Continental COM
pany.
"[Nhen it is all over | don't be-
lieve Davis will have a cent LETT"
said former associate OF Elvad IN
Chicago.
Conducted School Here.
Peter Elvad came to Omaha in
1907 or 1908 and for several years
conducted an automobile training
school. In 1912 he organized the
Bankers Realty Co. and was made
president. Soon afterward he or
ganized the North American Hotel
Co., of which he was member of
the board of directors.
In. May, 1919 directors of the
Bankers Realty Co. became dissat-
ished with Elvad's management and
Elvad resigned as president, dis
posed of his interests in both the
realty company and the hotel COM
pany and went to Chicago.
Estimates or wealth.
Local estimates OF his wealth while
a resident of Omaha vary from
S50,000 to $500,000. One man who
was closely associated with him in
business says he does not believe
Elvad was ever worth more than
$4,000 or $50,000 Another Omaha
business man, who knew Elvad
equally we'll says he was worth half
a million when he left Omaha.
While here he was married to Miss
Sadie Johnson of Kennari, Neb.
Mrs. Elvad and their one child are
reported to have left Chicago with
Elvad and it is believed they are
now with him.
For some time before leaving
Omaha Elvad occupied a residence
In Fairacres, which is one OF the
finest in the city. He spent money
freely and lived like a prince" one
of his former business associates
said TODAY