People's Pilot, Volume 4, Number 50, Rensselaer, Jasper County, 6 June 1895 — ARMOURS CHARGE FRAUD. [ARTICLE]

ARMOURS CHARGE FRAUD.

Attempt to Foreclose Mortgage Implicates Paul Schulz. Tacoma, Wash., June 5.— In attempting to foreclose the $1,350,0000 mortgage against the Tacoma Railway and Motor company, the New York Guaranty and Indemnity company has encountered the Armours of Chicago, who have set out, according to the statement of the local stockholders, to either compel a compromise or show up the alleged street railway wrecking methods of the General Electric company. Incidentally the suit has brought out a misappropriation of $750,000 of the local company's bonds by Paul Schulz, who committed suicide when his creditors pushed him to the wall. The Armours became interested in the local street railway company several years ago, when it had $750,000 in capital stock. On this Schulz issued $1,500,000 in bonds and disposed of $1,350,000 through the New York Guaranty and Indemnity company. The Armours are innocent stockholders, and. not being represented in the issue of bonds, claim the bond issue was excessive and unwarranted. In placing these bonds, it is alleged, Schulz made use of a dummy syndicate. Another feature of the deal was the purchasing of a suburban railway for $350,000 when it was valued at bub $69,000, besides turning over to the seller a bonus of $141,000. All this the Armour stockholders claim was done in collusion and with a, view to permitting the General Electric company to wreck the local street railways.