Las Vegas age. [volume] (Las Vegas, Nev.) 1905-1947, 1928-11-24
GIGANTIC FRAUD
ROMANTIC TALE
Court Action Bares Details
of Schemes Which Cost
Las Vegas People Much
Money.

After a long, tedious week, the
trial Of the case of John L. Rus
sell versus Oren Ruffcorn, involv-
ing the ownership of the Russell
ranch, drags to close.
Inc plaintiffs case rested tsts
morning, and it is expected that
the defense will complete the pres
entation of it's case this afternoon.
BY holding a night session this
evening it is hoped to be ready
for the arguments by Monday
morning.
With court converting every
morning at nine o'clock, and one
night session already held, attor-
neys for both sides, as well as
Judge George Bartlett of Reno,
will no doubt breathe a sigh Of
relief when the matter has been
decided.
To the casual onlooker the case
is just another civil court battle
involving a world of technicalties
and wordy legal references. Un-
der the surface, however. there is
a story as romantic as any in the
v'Grld of finance.
Involved are the local mortgages
amounting to SPOT 10000, contracts
of the company reaching almost
s17,000,00000, and a tale Of high
hopes and apparent mismanage-
ment of concern which gave
every promise of being success.
The National Land Value Guar
antee Company Is a California cor
poration, and to enable 1t to do
business in the state of California,
Judge z. B. Evans, Of Monrovia,
and former dean Of law of Drake
University. fathered an act of the
legislature.
The National Land Insurance
Company, a subsidiary company,
was a Nevada corporation, and in
compliance with the law, :his COM
pany secured mortgages in and
around Las Vegas amounting to
SPOT 100000. These mortgages were
ostensibly for the purpose of en-
abling the company to do business
and, according to the understand
ing of the mortgagors were to be
deposited with the Nevada state
treasurer, as security. and were
not Transferable
An attempt to transfer them to
the National Land Value Guar
anty Company brought on the ac-
tions in the local court, which re-
suited in the recent DEGREES OF
the court, canceling the mort
cages.
John L. Russell mortgaged his
ranch west of town to Oren Ruff
corn, one Of the officers Of the
National Land Insurance Com
pany, for the sum Of $50, 100000
this amount to be first payment
on a contract for the purchase OF
stock in said company amounting
to $167 10000
Russell, and George B. Clifford
were two of the most active pro-
moters of the National Land In
surance Company, of which Charles
G. Greene and F. E. Luesley were
the originators and moving forces
Russell is suing for the cancel
lation OF the mortgage and the
return of his property. Contracts
for 100000 in insurance already
issued, form the basis Of the de-
fense in resisting RusSell's action
The scope to which the company
might have reached Is indicated
in testimony to the fact that con-
tracts had been signed up for al
most S13,0O0,00000 more than the
$4,000 10000 actually issued.
The inference drawn from teSti-
mony not allowed by the court Is
that the high powered activitie;
of a few of the promoters who
splurged financially In the rent
ing and furnishing Of offices, hir-
ing of help, and salaries to them
selves. combined to wreck the COM
/ pany. The idea involved was new
but recent developments indicate
| that it Is sound and feasible II
properly managed.
Greene, according to gossip go
ing the rounds, disapproved Of the
methods being used, saw the crash
coming. and got out from under.
Testimony revealed the exist
cIlCG Oh d S6G VI tkCOu1 h4d4 I<hOACc
worked out over q long period OF
years, which may be worth all the
way from nothing to $1,000. 900 90.
According to some witnesses they
were without value, and accord
ing to the testimony Of Judge
Evans, they we're beyond price"
Another romantic touch was fur
rishe dhv testimony regarding the
discovery of Is secret cards, COW
cred with cryptic figures and let
tiers, somewhat In the nature Of
crossword puzzles. These we're dis
covered in a sealed envelope, un-
der the flap of which were the
names of Greene and Luesley, and
their meaning is supposedly known
only to those two.
One witness testified that he
had worked out a solution which
gave these words and figures the
meaning of make profits"