Newspaper Page Text
GOLD BRICKED. The Story Now Current of How the Lloyds were Swindled. A Backwoods Miner From Arizona and a Yarn About His "Pard." One Means of Accounting for a $10,000 Promis sory Note. There have been a great many inqui ries and suppositions as to how the note of O. H. Holt, a former clerk in the insti tution, for the sura of 810,000, came to be included among the worthless assets in Lloyds National bank. No one seems to know much about this but the bank officers and, of course they are not divulging bank secrets at a very rapid rate at present. There are reports, how ever, that an explanation of this financial transaction, by which the Lloyds' deposi tors were left in the lurch to the above amount, may be made and possibly be fore the matter gets in the courts. Several pnrtiea in Jamestown liavo been informed that this sum of 810,000 was taken from the bank by the old'and often worked scheme known as the "gold brick scheme." Current raport has it that such a transaction occurred in August. 1891. The Alert is not familiar with ail tLe details and only the sub stance of the deal can be given. Whether the story is true or not remains to be seen, but there is a probability that the statements which follow are, in the main, correct. The opening chapter of this financial romance in which the shrewd and conservative banker, Cashier James Lloyd, is intimately concerned are known to several people in this city, at least. One pleasant day in the latter part of July in the year 181)1, while President William Lloyd was in Europe making an impression upon English investors of the Alliance Loan and Trust company, a stranger giving the name of Harper ap peared in Jamestown. He was unknown to the Messrs. Lloyds, and in fact, no one here was acquainted with the man. He was dressed as a miner in a coarse back-woods suit of clothes. He was a middle aged man and presented every indication of honesty, truthfullness and simplicity. In fact he was rusticity and simplicity, on the surface, itself. He soon made bis way to the residence of the Lloyds and disclosed the object of his visit to Messrs. James Lloyd, O. H. Holt and another gentleman who hap pened along the walk while the above trio were in conversation, and wbo joined the group. Old man Harper's story was that he had list come in from Montana where he had been in search of an old time partner of his, by the name of Lloyd. Mr. Harper's simple manners and plain out-spoken ways at once interested his bearers, and Mr. Holt particularly was noticed to be greatly engrossed with the story of Harper. Harper had a dialect that was perfect of its kind. It was a back-woods country accent that fitted well with the simplicity and honest ap pearance of his person. He said he had lived in Arizona many miles from a railroad, and had mined it in that section for twenty years. He never came to a town or postoffioe, except three or four times a year for mining supplies. He lived among the Apaches and Indians, and in his unassuming and simple wav told many interesting tales of adventure in raining enterprises. But he had been there so long and had heard nothing of his partner that he had at last deoided to come search of him. He intimated that he had discovered several valuable mining claims and said it was understood between them, when he left his partner many years before, that whichever one struck it rich would hold half for the other. He was there fore looking for his old partner Llovd in order to divide the findings he had made in Arizona with him. Mr. Harper was so green that when be saw the electric lights he wondered "what tbey mout be, that want lit by a match." He said that he was on his road from "Montany" where he had been in search of his partner and had dropped off here learning that a family by the name of Lloyd resided here. He thought that he might get information from them if his old partner was any relation and learn his whereabontB in that manner. He was much in doubt as to which road he would take to return home and seemed greatly disappointed at not gain ing any information of bis long lost "pard." He 'lowed" that he would go back the same way he came as then be would take no chances of getting lost in going home to "Arizony." From this point the observation of Mr. Harper's movements became somewhat more obscure, but the current report in St. Paul uud Fargo is that he was one of the most accomplished swindlers in the northwest, and that he is known to at least one or two parties in the state per sonally »h an expert sharper. The next stage in this little drama vu enacted at Detroit, Minnesota, and here the trail of the movements in tbia well planned plot becomes faint and only a part of the real facts are known to the public, but well known to several indi viduals. Among them is a prominent official of Becker county, Minnesota, who had interested himself in the case, and who undertook to work it up profession ally. Harper is remembered by those who saw him to have been' about 5 feet and 10 or 11 inches in height. He was dressed like a German foreigner from the back woods. He had a heavy black beard which was a little curly. His hair was also black and shaggy, which was prob ably a wig. He wore a black hat with a very low crowu, and left Jamestowu the last of July for Detroit, Minn. The story is related that Mr. Holt at Detroit, claimed that Harper could not speak English but could understand any thing that was said. There were also two other men conuocted with the deal one registered as E. D. Finley and the name of the other is unobtainable. The sheriff of Becker county, who had his attention attracted to the case, is not entirely familiar with the full details and what followed the first appearance of Mr. Holt at Detroit. But ho kept an eye on the developments as they came about and informed himself concerning the same as near as he could at the time. He believed that some thing unusual was going on, and in a report of the same says that Mr. Holt first came to Detroit OD the 27th of Jhly or. the 29:,h he left and returned again on the 30th with the Arizoua miner that livery team was hired by Mr. Holt at i3 m., on the 30th of July, and at 4 p. m., he and Mr. Harper drove out about a mile from town. Mr. Harper returns with the team to the barn about 7 p. m., and disappears that same even ing. It was noticed that Mr. Holt was very anxious and nervous about the re turn of Mr. Harper, on the 31st. The former left Detroit at 4 o'clock coming west to Jamestown. He returned again August 1st, at 10:43, this time accompa nied by Mrs. Lloyd and daughter, and all registered at the hotel. The James town party returned west the same even ing at 12 o'clock, and it was reported at the hotel that neither ate anything dur ing the day. Mr. Holt returned again to Detroit. August 2d, alone. Being shown a room for the purpose of sleep, he does not stay there, but goes out-ou the piazza and walking up and down nervously asks if Mr. Harper has re. turned yet. He leaves again at 4 p. m., that evening. August 2nd, a third party turns up in the person of E. D. Finley, registering from St. Paul. He goes to the livery stable and hiring a rig leaves town in the direction Harper left when there. Shortly after dinner the team rented by Finley was overtaken by the sheriff, Fin ley was not driving the team, but the fourth party epoken of wa9 and he had something covered up by the rain-boot in the buggy. This was about a mile and a half from the city. The driver seemed excited and nervous us he was passed. About an hour and a half after wards the owner of the livery team, the sheriff himself, saw bis horse and buggy in the brush and thought that something was wrong, but gave the matter no furth er attention until the following day when he went to the spot, the horse not hav ing been returned and saw the animal tied in the brush. There was also found an excursion ticket issued, to Harper, dated at Jamestown, August 1st, and torn in three pieces a half gallon of liquid, a bathing towel, a pair of stock ings and hat box. In the evening of that day Finley himself returns the team to the stable. It was supposed at the time that the movements of this party were connected with an abdnc'.ion cose, but, of course, such was not true. It is also presumed by the Detroit people that Harper was a detective and had disguised himself. Finley and the fourth party disappeared and have never been heard of since. The druggist of whom the bottle was purchased by Finley, says that Finley asked if he could get it filled with #ith distilled water. When told that they had none he said that any kind would do. On Friday it is stated that Finley and Mr. Holt went fishing to Long lake, a short distance from town. Mr. Holt was also seen at the book of the hotel talking with Mr. Harper about a windmill. Mr. Holt was telling Harper, who claimed never to have seen a wind mill before, in his life., how it worked. When Mr. Holt left he deposited with, the hotel proprietor a note to Mr. Har per, aaking Harper to telegraph him at Jamestown. Every time that Harper and Holt were seen together it was noticed that the former was very nervous and both exceedingly interested in each other, Mr. Harper explaining things in his simple and earnest way. From these various peculiar move ments and singular transactions it is stated the result was as intimated above, that the gold brick soheme, the exchange of what was possibly a gold brick for the spurious one, was worked upon the peo ple from Jamestown. It is currently reported in St. Paul, at least, that such is the case. It is supposed that Mr. Holt believed in the stones of old man Harper and imparted h's belief to Mrs. Lloyd, interested her and Cashier Lloyd in the case and that they in turn favored the transaction for the sake of some great gain to be derived, but by which some 810,000 disappeared from the cash of the Lloyds bank, and the note of O. H. Holt left instead. As improbable as it might at first ap pear. the story of how the Lloyds depositors were filched out of 810,000 by the old gold brick fake, as told in The Alert last night, is confirmed by the Capital, which says it has known the facts a long time, but promised a "dis interested party" not to tell. The Capital says the swindle occurred in 1892 instead of 1891. Thw is not correct. The deal occurred in 1891. as stated Richer by 810,000. Word has been received from the offi cials of the People's National bank of Pittsburg, Pa., of which D. McK. Lloyd, is president, that they have remitted to the receiver of Lloyd's National bank the amount due and charged against this bank's .account on the note of W. M. Lloyd. The remittance amounts to. 810,000 less the discount of 8111.07. It will be remembered that D. McK. Lloyd was indicted by the grand jury and it was charged- against bitn that by corre spondence between William M. Lloyd and D. McK. Lloyd a ficticious credit to this bank was made on the books of the Pittsburg bank in the sum of 110.000. To go back to the time of the closing of the doors of the bank it will be stated that there was a credit of this bank on the books of the People's National bank of Pittsburg, of which D. McK. Lloyd is a director, in the sum of $10,000. That same day, the Pittsburg bank, learning that this bank had suspended payment, cancelled that credit and notified this bank that they had done so in pursuance of a letter on which the credit was based. The signature of the letter showed William M. Lloyd had prom ised D. McK. Lloyd, that if he should secure that credit, this bank would not draw against the other and that it should remain in the bunk where he got the credit, but might be cancelled off at any time. To secure this credit William M. Lloyd put up his own note for 810,000, which D. McK. Lloyd was to negotiate when he bad secured the credit. The Peoples National bank negotiated $10,000 and W. M. Lloyd was credited with $10, OOO.Tbis bank never drew out any of this money and Wm. L. Lloyd's credit was increased that much. His overdrafts would thus hove amounted to 835,000, iustead of $25,000. While the bank did not get the credit, William M. Lloyd did. and used it. The People's bank cancelled the credit, said that th»y were not liable and refused to pay. D. McK. Lloyd was indicted on thot entry. It is now easy to see that the indictment brought him and the People's National bank to a realizing aense of the situation and compelled them to pay the amount. This payment does not necessarily re lease D. McKnv Lloyd from the indict ment against biui. Stole a Team. Saturday a. ra. Frank Neidecken was arrested for the theft of a team of horses fiom the stable of Wm. Walker, a North ern Pacific switchman, living in the vicinity of the old court house. He was taken before Justice Bigelow, but the expense of a trial made unnecessary by his pleading guilty to the charge of grand larceny. He was bound over to the district court to await the sentence of the court. The team had been purchased from Frank Niedecken dunng the latter part of January by Mr. Walker and $5 paid on the purchase price. This morning when Mr. Walker went out to his stable he found the lock broken and the horse stalls empty. Later in the day he was informed that the missing horses were in the barn of Henry Severn, living west of the river, and the animals recovered to gether with the self confessed thief. Highest prioe paid for connty and city and school districts warrants. W. B. S. Trimble. JAMESTOWN. NORTH DAKOTA. THURSDAY FEBRUARY 22 1894 IU The Alert. In 1S92 the Lloyds block was built, and William Llovd remained in Jamestown during that summer. He left for Europe, July 2nd, 181)1. The Capital further says. that J. M. Lloyd let Mr. Holt have the money from the bank. The brick was tested and declared to be genuine and during the exchange of the money for the brick a copper brick was substituted for the other one. The confidence man got away with the §10,000, and the bank got an other valuable security, upon which it will realize, according to the Capital. 100 cents on the dollar. OF STATE INTEREST. Cactus Legislation Materially Assiq£ed by Governor Shortridge. Teachers' Attention Drawn to a Needed Moral and Sani tary Reform. Dull Times in and Around the St. Paul Hotels.—Future Horse Business. Gov. Shortridge, who is in Washing ton in the interests of cactus legislation, had a bearing before the house commit tee on agriculture, Saturday, the com mittee having under consideration Boen's Kussian thistle bill. The governor detailed the history of the agitation in North Dakota to suppress the thistle. He told of several conventions held and said the state would do all it could, but it needed help on account of the large amount of government land and untax able railroad lands. He read letters from the governors of Minnesota, South Dakota anil Nebraska indorsing the luoveiiji-nt. Gov. Shortridge made an excellent impression, says a Washington dispatch, by his evident sincerity and knowledge of the subject. Mayor Bnttz of Jjuttzville, Ransom connty, also spoke of the destruction wrought by the weed in the northwest and fully substantiated the statements of the governor. His personal exDeri ouces with the weed on his own farm were also given. Both Congressmen Boen and Johnson look for a favorable report to the house of the bill, though members of the com mittee state that they fiad more in the measure than they expected and believe that a few changes will be necessary. It will probably he amended by reducing the amount of the appropriation and providing that the money shall be ex pended only on the government land, as Senator George, of the senate committee on agriculture, proposed weeks ago. The state superintendent of public in struction has just issued a manual of the elementary course of 6tudy for the common district schools of the state and in a paragraph urgently calls the atten tion of the teachers, to a growing evil that is abroad in the land—the filthy and H'ile condition of the school out houses. The state superintendent says: I know of and have made complaint of school houses in this state where the out houses were snowed full in winter, and too vile to enter in summer, leaving the pupils without the proper means to obey the calls of nature the whole day. No wonder that their brains are inactive their digestion impaired and their cir culation sluggish. And not only are tbey pest houses where disease is germi nated, but tbey are immoral influences that burn and blacken the pure young souls of innocent children, and perpetu ate and strengthen the evil in evil. This is no place for false modesty to prevent action. 'The law provides for these build ings, and it is your* duty as teachers to see that the school where you teach has comfortable and convenient buildings, and that they are kept clean and free from all kinds of drawings and writings. All over the land is going up a cry against these moral and physical abom inations. Let North Dakota lead the van in purging and purifying them, and through them the health and morale of our children. This is a call to duty. I request county superintendants in visit ing schools in their counties to make in spection, not only of the outhouses, but of the school walls, and make note of their condition to use in granting cer tificates where the fault is the teachers or reporting to the school boards for improvement. Bauker Whipple of Devils Lake, is not going to remain inactive in the money making line if wheat is only 40 cents a bushel and little of it to be had at that price. He is looking after the sale of North Dakota securities, county war rants, etc., for eastern money lenders and says there will be no trouble in dis posing of every county warrant in the state, with possibly the exception of one county, that has exceeded its debt limit, at a good figure if the paper only ran longer. Most of it is short time and not desirable on that account to the eastern investor. Mr. Whipple is learning to do what bis hands find to do and in the past year, or so, has disposed of a large num ber of better grade of horses to the farmers around Devils Lake. He says the horse importing business, however, will not be as profitable again, as nearly every farmer has a colt or two about ready for the market. There have been a great many home bred colts raised in North Dakota within the past two years. A number of experiments with the so called Christian science treatment having1 WEEKLY ALERT. been tried during the Grand Forks epi demic, with unsatisfactory results, the Herald protests against further attempts in that liae where human lives are in volved. When the "science" healer goes into a sick room and immediately banishes medicines prescribed by pro fessional men skilled in physical healing, the Herald thinks he does a foolish, if not a criminal act, and the chances are more than nine to one that his patient will die. 1 Christian science may have some curative effect upon the mind and the spiritual and immortal part of man, but the corrupt body, laden with disease, and afflicted with ailments of a purely physi cal nature, requires something more than faith or a vivid imagination to restore it to health. Captain Carson, one of the leesees of the Merchants hotel in St. Paul, speak ing about the business in that famous hostelry, says: Nobody is coming to town these days except when they have to and they stay as short a time as possi ble and get away. All our old friends seem to como to the Merchants just the 6ame when they do come. These times remind me of the Irishman's question. Mike said to Pat, "How are you getting along these hard times?'' Pat answered. "Pretty well but, the. times is pretiy bard." "Yes," said Mike, "but they are not as hard now as they were in when we were in power before." Mrs. Eisenhuth, secretary of the board of university and school lands, has been advised from Washington that the fol lowing list of selected lands would be approved at the general land office. Washington, D. C., in a day or two: Agricultural college. 7,700.18 acres deaf 6cbool, 2,256.95 acres public bnildings, 5,500.52 acres reform school, 2,585.43 acres school of mines, 2,319.21, and state normal schools, 5,737.94, making a total of 26,106.23 acres. The information does not state for which normal school the selection is credited, but it is piesumed to be for both. Pembina county has a school popula tion of 5,354 children, this being an in crease of 246 over the sensus of last year. Cass county has 5.946 pupils enumerated. The enumeration of the children of school age in the state is not yet com plete, eight counties being yet to hear from, but the census shows an increase of 3,728 over last year. The apportion ment of the school fund would have been made Monday if all the reports had been The Great Northern road has raised its rate on lignite coal for the short haul in North Dakota to 25 cents per ton. The railroad commissioners have another job on hand to keep the road within statuatory limitations on this coal rate. The News of Grass Lake, Mich., an nounces the death from a cancerous trouble of Mrs. Malnight. wife of John Malnight, a former resident of James town. The deceased was 36 years of age and leaves two children. The LaMoure Chronicle brings out N. Hubbard of Fargo, as a republican can didate for governor, and J. M. Devine of LaMoure county, for another trial as state superintendent of public instruc tion. The "Grabber" is the somewhat novel title of a paper recently established at Burlington. Ward county. Weather Forecast Charts. For over a month past Postmaster Smith has received from the local fore cast official at Huron. South Dakota, de partment of agriculture weather maps showing the local forecast for 36 hours in advance. These be has had placed in a public place in the postoflice for the inspection of the public and for their in formation. The map covers the entire United States with especial reference to the northwest. Isobars, or heavy lines, pass through points of equal barometric pressure, while isothermal lines, repre sented by a series of dots, show points of equal temperature. Arrows on the map show the direction of the wind at the points indicated. The condition of tie atmosphere, whether clear, partly cloudy, cloudy, or whether there is a precipita tion of rain or snow, is shown by a sys tem of small circles. Shaded areas in pink show a chtnge to warmer of 10 de pressor more within the past twenty-four hours, while shaded areas in blue show a change to colder of ten degrees or more. Shaded areas in black represent a rain fall of one-quarter of an inch or more. Postmaster Smith states that he ex pects shortly to receive a frame for the reception of the charts, as they are re ceived and providing a better means of examination of the charts by the public. At present they aro suspended fiom the wall almost out of reach and where but little noticed. NO Board of Education. A special meeting of the board of edu cation was held Wednesday to consider the refunding of 825,000 worth of bonds. Those present were President Roper, Mrs. Hotchkies, and Messrs. Steel, Lut/. and Camp. The finance committee, to whom was referred the question of payment of the bonds, which fall due April 1st, recom mended that for the purpose of refund ing the debt, new bonds be issued to the amount of 825,000, in denominations of not less than §500 each, with interest not to exceed six per cent, payable Jan. 1st and July 1st of each year also, that the oonds shall not be sold at less than par. and to be made payable on or before twenty years from date of issue. The proceeds from the sale of the bond9, or so much thereof as may be necessary, to be used in the payment of the bonds due April 1st. The committee also recom mended that the president and the clerk of the board be authorized to offer the bonds for sale to the board of university and school lands of the state, and in case the offer is not accepted, to be authorized to advertise for bids for their6ale. These bonds which soon fall due were issued April 1st. 1H84, for the yjurpose of build ing the high school, and for the further purpose of liquidating the indebtedness of the board of education. By resolution the report was adopted and. upon the offer of the purchase of the bonds by the board of university and school lauds being accepted, the presi dent and secretary, or other officers of the board, authorized to execute and deliver the bonds. Mr. Steel stated to the board that he had been requested by a member of the board to find out from the county offici als how large an amount of funds had been collected by the district court dur ing the past few years from finet1, and other sources tributary to the school funds, and how much, if any, had been turned over to the school treasurers of the city. A list be had secured from the clerk of court showed that the total fines collected from 1889, to date, in the dis trict court for various offenses, amount to 8615. This list did not include the amount of bail bonds which had been forfeited, which amount to $500 The fines collected, with but one except ion, were for offenses committed within the city and among these are the prohi bition cases. Section 12 of the prohibi tion law states that all lines and all' money collected in the prosecution of liquor cases 6ball be turned into the treasury of the county. The county treasurer will temporarily credit the money to a special fund. The treasurer must keep-a proper record of the money received and paid out in each action and if, after paying all the costs of such action there shall be any remaining, he shall credit the same to the common school fund. The charter of the board of education, section 28, explicitly states that all tines and penalties or forfeitures for the vio lation of any city ordinances of said city and all fines and penalties or forfeitures for any criminal offenses committed within the city, shall, when collected, be paid, by the officers receiving the same, into the treasury to the credit of said board of education, which shall be paid over to the treasurer of the board of education on the second Monday of each month of each year. If the prohibition law is the one to fol low then the city schools have received but a fraction of the amount which they would have received if the section of the charter is the law governing in the case. President Roper was instructed to lofik the matter up. Resignation Sent In. United States District Attorney Camp has sent in his resignation to Washing ton to tane effect April 1st, and although the announcement may be a surprise to many, the step has long been contem plated. Attv. Camp, seen today, states that the duties of the ollice take him away from the city so much as to break up his busi ness here. He canuot attend to either work satisfactorily, while trying to hold both, without neglecting one nnd his home practice he considers the most im portant. His 'commission would not have expired until January, 189(5, he hav ing been appointed in Oct., 1891, to suc ceed John Selby, whose time would have expired in March of this year. The resignation of Mr. Camp will open up a lively contest for the office which it is said will lie principally between At torneys Hildrefh and Mil.'er of Fargo. Bangs of Grand Forks, and O'Brien of Devils Lake. Griggs [county refunded 830,000 eight per cent bonds into six per cents and got 8300 premium. But the new bonds run 20 years and the old ones were optional in 10 or 20 years. Gov. McKinley of Ohio, has promised to deliver a lecture before the Devils Lake Chautauqua association at the coming summer meeting. iff ijft 1 'li Ml!