Jacob "Howling Wilderness" Smith-- Part 4: About That Bounty Brokerage Scheme of Jacob's

Was this how Jacob Smith made all his new-found wealth?  You mean it didn't come from his father-in-law trying to hide his money and declare bankruptcy?

Here is Jacob Smith's bounty brokerage scheme:

During the war, eastern Union states offered bounties of up to $700 for recruits.  Midwestern states offered up to $300.  Wouldn't it be something to recruit in Kentucky, pay the recruit the $300 then send him out to recruiters in the east, get paid $700 and then split the $400 with those people.  Evidently, Jacob Smith saw an opportunity and took it.

Mr. Smith said he at first thought what he was doing was perfectly legal.

But, he took $92,000 from the eastern recruiters to cover the scheme.  Instead of using it for the intended purpose, he took that money and started making investments in side ventures of his own with it. Those included whiskey, gold and diamonds.  When the eastern recruiters found out and demanded their money back, Smith noticed that they did not engage the law to get it and decided that he wouldn't give the money back.  Then, their little scheme must have been illegal.

His investments were highly profitable and he claimed he had paid the easterners back all the money.

Verrrry Interesting As the Guy on Laugh-In Used to Say.  --Old Secesh