The daily banner. (Cambridge, Md.) 1897-2008, 1921-01-26
MORE ARRESTS
NEAR IN SWINDLE
ButterweCk But Link In Crooked
Real Estate DEALS.
WAS IN TROUBLE EEFORE
Allentown Man Said to Have FIGURED
In Triangle Tragedy Which Ended
In Suicide.

Allentown, Jan. 26.-Additional ar
rests are expected hourly In the alleg-
ed fraudulent mortgage deals uncover
ed by the crash in the affairs of Harry
A. ButterweCk, builder and real es-
tate OPERATOR in which at least 5000, 600
has been lost, with Ii chance the losses
may runY6 a million.
Butterweck, who was arrested last
Friday and is in the county prison
here, charged with forgery and embez-
element, is but an important link In q
chain Of realty operators and mortgage
and insurance brokers involved In
crooked deals, Is the opinion Of lead
ing attorneys.
1t Is rumored warrants already have
been issued for people Known to have
been associated with Butterweck. So
extensive were his operations police
are certain others must have had 8
share.
J. H. Dixon, Il city detective. re-
veale1 that Butterweck was involved
FIVE years ago in a shooting affair.
Milton w. Morrow, Of this city, who
shot his wife and then committed sui
eide, first fired at Buttcrweck also,
Dixon said. Jealousy was blamed by
the detective.
The county courthouse here cOntin-
ues to be besieged by anxious mortgage
holders, many of them aged men and
women whose savings of lifetime are
at stake. The crowd in the recorders
"a Id tEI
gers" convention.
District Attorney 1obst stated evil
dence already in hand indicates other
persons in high standing are involved
with Butterweck.
The desperate straits IN which But
past months Is indicated by the fact
he issued no less than six mortgages on
house at 222 s. st. Cloud street.
1t is figured by lawyers ne piled
mortgage upon mortgage IN that prop
erty for the reason he still held the
deed 1t Is worth about $500 and the
mortgages plastered upon it are said
to aggregate $4,000 One of the vic
tins Is Rev. A. NJ. Leibensperger, Of
bethlehem, whose claim is in the hands
CT former Assemblyman Ira T. Erd-
man. In addition to a $4,000 mortgage
en- the ST. Cloud street house, Mr.. Lei
bensperger has a mortgage on Thigh
man street property, also said to be
worthless.
It was on ST. Cloud street that But
terweck began TO give mortgages on
houses that do not exist, it is alleged.
He gave half numbers TO houses that
are not there, and If there would be
In alleys between houses.
It is openly stated the heaviest VIC
tim Is Councilman J. Herbert koh-
Ter, Allentown's commissioner of pub
lie safety, who, through en- attorney,
invested in Butterwtck mortgages.
A victim who will lose his home IS
Harrison R. Fehr, Tr., younger son If
the former president Of the Lehigh
Valley Transit company. The property
Is rated worth $4,000, ON which he
made substantial part payment, CIV
Ing mortgage for the rest.
1t now turns out Butterweck had
previously mOrtgageI the property so
Fehr had better relinQuish 1t as the
entire obligation is $4,000.
One of the alleged 'ictims of Butter
week, who Is forty-fve yeurs old, finds
he has a deed to an underground al
ley instead Of house ne believed he
owned.
Former Congressman Fred E. Lew
is, twice mayor Of Allentown, asserted
scores of persons who had invested
with Butterweck, will lose their saw
ings.
1t Is alleged the builder invol"ed his
customers In more than $500 900
through mortgage killing, and 100000
besides in sums given rs partial pay
ments on houses they bought from him
Issuing him mortgages for the rest.
Butterweck's plight WIS brought
about by Mrs. Emma Wilson, who haf
purchased a mortgage on a prOpert!
owned by Edwin and Ida Diefenderfer
CT Allentown. 1t was for $500 WheI
she received no interest she complain
ed to the DiefcnderfeTs, md they re
rIied they had reduced the principal
to $1215 and had been paying the In
tcreSt, both to Rutterweck. 1nvestiga
ton disclosed the mortgage had been
assigned to Monroe Knauss.
The Diefenderfers swOre out a war
rant for Rutterweck charging him with
nmbezzlement.