A Railroad Land Agent’s Half-Million-Dollar Hole in Spokane
Paul Schulze’s defalcation as Northern Pacific land agent grew to $400,000–$500,000, with a Spokane syndicate trying to protect its property.
TACOMA, April 22.—Additional facts show that Paul Schulze’s defalcation as Northern Pacific land agent will reach a much larger sum than has been heretofore stated. The St. Paul syndicate of Spokane is known to have paid him between $400,000 and $500,000 for Spokane property, for which no account was made. P. A. O’Farrell, of Spokane, is here trying to protect the syndicate’s rights. The property purchased is four or five acres near the heart of Spokane.
“The St. Paul syndicate of Spokane is known to have paid him between $400,000 and $500,000 for Spokane property, for which no account was made.”
Insider land deals and railroad-controlled property shaped Spokane’s growth in the 1890s, and the city’s real-estate market still runs on questions of who gets advance knowledge and who bears the loss. The half-million-dollar defalcation is a reminder that booms create opportunities for fraud as well as fortunes.
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