OCR Text |
Show GREAT SWINDLING SCHEME UNEARTHED Seattle, Wash., Jan. 16. In the ar-v ar-v i late yesterday of T. R Kelly, secretary, and Arthur Bird, treasurer, of the Pacific Mutual Bond & Loan company on federal warants changing them with using the mails to defraud postolllee inspectors declare they have unearthed one of the largest swindling schemes ever conducted in the Pacific northwest. Warrants have been issued for other officers oi the company who are being v,oiiL-ht throughout the country Kelly and Bird were arraigned before a United States commissioner and held to the grand jury under $4,000 ball each, In default of which they were remanded to jail. According to postofflce inspectors the Pacific Mutual Bond and laan company, which was incorporated in Washington two years ago with a capital cap-ital stock of 25q,000 lo lend money on farm mortgages, really had no money to lend and duped prospective borrowers by charging an examination fee of one per cent on the amount or the loan desired. The mone obtained in this way, the government alleses. was diverted to the use of the officers offi-cers of the company, and no farm loans were made Postofflce inspectors say the company com-pany had agents in all western states and at one time operated extensively in Utah and California |