News: Louisiana Land Swindle; Winn Par., Louisiana
Submitter: Shawn Martin
Source: Dallas Morning News; Dallas, Texas
Date: 01 Mar 2008
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Dallas Morning News – 12/30/1905
LOUISIANA LAND SWINDLE
Chicago Men Indicted on Charge of Using Mails to Defraud
   Chicago, Ill., Dec. 29—The Federal Grand Jury yesterday 
returned indictments against Louis A. Gourdain, proprietor 
of the Imperial Bank, Dearborn and Madison Streets, and John 
H. Dalton, former proprietor of a North Side saloon, both 
accused of using the mail to defraud.  The indictments 
accused them of selling fraudulent options in alleged oil 
lands in Louisiana.  The indictments state that Dalton and 
Gourdain acting under the name of Louisiana State Loan and 
Trust Company of New Orleans, purchased 10,000 acres of land 
in Winn Parish, La. at $1.50 an acre, platted the land into 
lots twenty feet square and offered options on these lots for 
$20 each down to 50c.  These option certificates were made to 
resemble lottery tickets and certain prizes ranging from 50c 
to $5 were paid as bait.
   Monthly lists, purporting to be the list of prices bid for 
the oil land, were sent out to the purchasers of options.  The 
indictment states that the enterprise was a fraud; that the 
lots were worth no more than 1 1/2c each; that no oil ever was 
found on the lands; that no bid had been made; that the assets 
of the company were $5,000 instead of $1,500,000.