The Price of a Phony Partnership
A Seattle man alleges he was swindled into buying a worthless photo studio by a pair of partners who claimed to have phantom land holdings.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
I. R. Spalt, Josephine Spalt and W. A. Crowell were sued yesterday by Daniel Brown to recover $500, out of which he claims to have been defrauded by being induced to purchase a worthless photographic outfit. According to the complaint filed in the case, the defendants advertised in the papers that there was a photographic gallery to be had for $600, the business paying a monthly profit of $650. The gallery belonged to the Spalts, while Crowell was a practical photographer in their employ. Brown says it was represented to him that the Spalts were willing to sell out the business for $1,000. Crowell proposed to enter into a partnership with Brown to buy the outfit. Crowell represented that he had valuable lands back east, out of which he shortly expected to realize $5,000, but had no ready money. Brown was asked to advance $500 cash, and the rest of the $1,000 was to be paid in monthly installments of $50, which were to be taken out of the earnings of the gallery. According to Brown's story, the purchase was made under these conditions, but Crowell, in a very short time, made the relation so unpleasant for him that he was almost forced to sell out his share in the business to Crowell for $500, for which Crowell gave his worthless notes. The business, too, he says, proved a very poor one. It is claimed by the plaintiff that the whole transaction was a conspiracy between the Spalts and Crowell to defraud the plaintiff; that Crowell had no land in the east, and that he never paid the Spalts any money.
“Crowell represented that he had valuable lands back east... but had no ready money.”
Business partner disputes remain a perennial feature of the local courts, though modern arbitration and due diligence have largely replaced the dramatic, high-stakes fraud schemes of the 1890s. The claim of 'valuable lands back east' as a lure for local investment mirrors the classic 'get-rich-quick' tropes that have followed Seattle's growth since its inception.
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