Shy on Dividends
“In 1912 the first trouble arose over dividends not being forthcoming from his investments. He was still strong in Berlin and went there and raised fresh capital with which he succeeded in placating some of his investors. Then he was attacked in a Vancouver German paper which charged him with unscrupulous methods in handling foreign capital. Copies of this were mailed to Berlin to members of the Reichstag by the Vancouver editors, and the matter was brought up for discussion by that body. Alvo was game. He sued the local paper and secured judgment in a criminal action against the editors. But the fat was in the fire as far as his German clients were concerned, though he managed to keep his affairs afloat.
“In the early part of 1914 the financier’s creditors, both in Europe and Canada, were pressing him. He was tied up in such a mass of deals, counter-deals, and trades of property with Arnold and the Dominion Trust Company that an army of auditors has never as yet succeeded in untangling them. He owed over $10,000 to one of Vancouver’s chartered banks on some Victoria Island timber deals, which he had anticipated selling to the British Columbia government for a park reserve. The Vancouver manager and a dozen of the staff were dismissed through their connection with this loan.”
He doubtless had advance notice of the outbreak of war, for he suddenly left Canada.
Later interviewed by a New York paper he said he could “best serve his country and his clients by returning to the Pacific Coast,” and from the outbreak of the war until his arrest on the suspicion that he was implicated in a plot to steal the plans of the Puget Sound Navy Yard of Bremerton, he remained in Seattle and other American Pacific Coast cities.