The Bridgeport evening farmer., 1911-09-25
). N. MORGAN
 WILL SUE FOR
 FALSE ARREST
Former U. s. Treasurer De- nounces His Arrest as an Outrage-With Jared FIagg,
 MT. Morgan is Released on Bail
Especial from United Press.)

Especial from United PreSS.) tb
 New York, Sept. 25-After remaining in jail from late Saturday, when they were arrested on Federal war rants charging them with using the United States mails to defraud inves- tors, Jared Flagg noted broker, for mer treasurer of the United States Daniel N. Morgan, and others of his associates secured their freedom on bail this afternoon. They declared which they denounced as an outrage and would bring suits against the Federal officials responsible, for false arrest.
 One important witness is missing She is Madeline Russe, 19, and secre- tary for F'lagg. She is alleged by the Federal officials to have been instru- mental in interesting number of noted financiers in the operation of the F'lagg scheme. Miss Russo is said to have a very remarkable man. ner and mind and the post office of ficials say she had most to do with planning the operations of the con- cern
 Meanwhile, F,1agg customers and of ficials are trying to get possession of s6OOOOO in cash which Flagg was supposed to have on hand. The Fed eral officials had hoped to find from Flagg's books, seized when they raid- ed his offices, the location of this cash. but failed. It is now believed this money is in safe deposit vault, somewhere.
 A number of well known men of this city have invested with Flagg, in the past, but have, it is said, quit the scheme, with their principal and a large profit.
 Through difficulty in finding Fed eral officer to take bail, the arrested principals remained in the Tombs prison over Sunday, from which last as follows:
 s"The outrageous treatment to which we have been subjected has been such that I can only demand that the court pass upon it at once and without de- lay. No illegal act has been commit ted and the enormity of our arrest will appear when the facts come out.
 "D. N. MORGAN
 FIagg's statement, a denial of wrong doing, was as follows:
 'eThey say I am running a Miller syndicate.' Let them bring forward one-let them show me one customer to whom I have ever paid a dollar out of his or any other customers s money, and I will make no further protest dSdlHSI Cl1Cif llSI 1ldLOtQ pTO- ceedings.
 .'Every dollar in profits, on closed transactions, that I have paid out has been honestly made. When stock has been bought for a customer the date the price and the name of the Stock Exchange broker from whom it was bought has been sent to the customer When the stock has been sold, the date, the price and the name of the Stock Exchange broker to whom it was sold has been sent to the custom CT with a check for the difference, less commissions, tax and interest
 '"These profits, on closed transac- tions, have averaged over 50 per cent. per year for over three and one-half years. Had there been'no profits no money would have been paid out.
 After conducting business on this basis for about four years I am ar rested and accused of intending to defraud some person who has never had an account with me and to whom no misrepresentation has been made.
 JARED FLAGG
 .'P. S.-The arrest of my friends and clerks, who had absolutely no voice in my business, is an outrage beyond words"
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