The Vice President's Cousin and the $1,000 Port Townsend Swindle

Port Townsend, April 13.—Special.—It is now generally known that the Interstate Building and Loan Association, of Bloomington, Ill., victimized the people of Port Townsend, and there is good reason to believe that the management of that association was not altogether unaware of the peculiarity of the matter they decline to make public.

In this connection it is said the Collector of Customs was also a victim of the smooth-tongued confidence man. Through his attorney he has made an effort to get back his investment. The best judgment is expressed by Postmaster McKennan to all the sufferers, for the reason that when Stevenson was first assistant postmaster general, McKennan was in Washington and recommended him, and earned the title of 'Stevenson's friend.' The anti-administration Democrats had come to look upon Stevenson as the only real, simon-pure Democrat in Washington City.

Under these conditions the time was ripe for Mr. Stevenson's cousin, W. D. Stafford, to drop around and solicit loans on realty. The young man was lionized, and had no difficulty in placing money loans among people who were not backward in asking for all the money they wanted, as Mr. Stevenson had the utmost confidence in Port Townsend. One man who was timid said he would like to borrow $500 on a certain piece of property. Very adroitly Stafford impressed upon the applicants the necessity of paying in small amounts — usually about all he thought they would stand — to accompany the applications for loans. When it came Judge Kuhn's turn he paid in $10, and was given this receipt:

"Interstate Building and Loan Association, of Bloomington, Ill. Received of J. Kuhn, of Port Townsend, ten ($10) dollars for membership fee for shares of stock [in] the Interstate Building and Loan Association, of Bloomington, Ill., which amount shall be returned to subscriber if application is not accepted by the association.

"W. D. STAFFORD, Agent.

"Dated November 16, 1894."

The applicants were required to make out abstracts, and that cost was charged to them. The abstracts were sent to Mr. Ewing, a law partner of the vice president, who was also the attorney for the association, for his examination. As yet the attorney has not even returned the abstracts, although the secretary, in reply to an inquiry, telegraphed that the company had no money to loan, and that no one was authorised to collect loans. He was then asked to refund the money collected by Stafford, but has not even deigned to notice the request.

Then it was that the local dupes became quite angry and prevailed upon Judge Kuhn and Postmaster McKennan to go after the association for redress. They were rewarded by each receiving ten shares of stock, the par value being $100 a share, signed by A. E. Stevenson as president. No request or demand has been made for further payment for the stock. Judge Kuhn's share is numbered 17,353, series 70, class A. Parenthetically, in one corner of the certificate appears the words 'free stock,' though the body of the instrument plainly says that shares are worth $100 each.

It is stated here that Stafford visited other small cities of the Sound and succeeded in swindling many people of various sums of money. It is hard to estimate how much money was taken out of Port Townsend by this scheme, but it is said to reach well up toward $1,000.