Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1915-12-31
MORE DEVELOPMENTS
IN INSURANCE PROBE
STONE ARRESTED SUNDAY. FAILS
TO GIVE $12,5OO BAH-OTHER
EVENTS OF WEEK

The arrest OF Frank Stone in Port
land last Sunday on charges of grand
larceny and forgery on which Gene
Kearns, a local saloonkeeper, and ].
F. Gillies, had been arrested last Fri
day; Stones incarceration in the city
jail in default of $12,5O0 bail. the
release of Kearns on $4,000 bail, the
placing of Arthur Young Of Tacoma
and Dave Blake of Seattle. proprie-
tors of other saloons in which alleged
fraudulent warrants were cashed.
under $500 bond each for their ap-
pearance as witnesses, and the enter
ing of a plea of not guilty by Gillies
to the grand larceny and forgery
charge, the fifth against him. in
which Stone and Kearns are also in
volved, were the principal develop
ments of the week in the investiga-
tion of the frauds in the state indus
trial insurance frauds.
Governor Lister last Friday offered
reward Of $500 for the apprehen-
sion and delivery of Stone. who had
been missing from Olympia for six
weeks, and Sunday night word came
from Portland that he had been ar
rested there. He was brought to
Olympia Monday by Patrolman
George Campbell Of the local force.
Stone claims that he virtually gave
himself up to the Portland police,
made no effort to furnish his bond,
having told two friends to communi-
cate with the authorities. He has
which was fixed at $12,50O. while ].
F. Gillies is also atill In Jail in default
of $11.500 bond, Kearns being the
only one % far charged With come
plicity In the alleged frauds who has
furnished bail.
GoyeE1ne Dantes naQoeA
No formal claims for tle 4goo -
ward for stones arrest have bosn
filed with Governor Lister, though
rumor says several will be presented.
and consequently there has bean no
disposition Of It. Incidentally. the
governor Thursday emphatically de-
MED the published report that he had
ordered Stone brought before him for
. "quizsing''. which, this same publi-
cation said. stones attorney. Thomas
NJ. Vance. had advised him to refuse
to do.
Stone. according to statements re-
ported to have been made BY Dave
Blake and Arthur Young. saloon men
who cashed fraudulent warrants
against the Industrial insurance fund.
was the man who appeared with
bogus claimants and obtained the
cash. The particular state draft
upon which the warrant against Stone
was issued II said to have been
cashed in Dave Blake's saloon last
January. called for 1880. and pur-
ported to be in payment Of the ,claim
Of one Thomas Mason" for injuries
received on road work in Cowlits
county.
Immediately after Stone was
brought to Olympia he was taken to
the attorney generals ONCE and ques-
toned. His story is that he left
Olympia November 20 with $50 in
his pocket, for a visit to the San
Francisco exposition. telling his wife
he was going to British Columbia for
fear, he said, that II he told her his
true destination. she would want to
accompany him, and he wanted some
body here to attend to his business.
He returned to Portland about De-
cember 8, he said. and had been liv-
ing there under the name Of Jack
Edwards. There are local stories to
the effect that Stone took $1,000
with him, and lost most Of 1t at the
gambling tables at Tia Juana, the
Mexican Monte Carlo. He was
"broke" when arrested.
Gillies' Trial January ~.
Stone denies all connection with
the looting of the industrial insur-
ance fund, and blames former Chief
Of Police Ben Hall for being impli-
Gated in the alleged frauds. Gillies
entered his plea of not guilty on the
fifth charge, that growing out of the
Mason case, when arraigned Monday.
and trial was set for January II, the
same time as the first charge upon
which he was arrested, that Of falsi-
flying public records.
Prosecuting Attorney Geo. F.. Yam
tbs issued statement this week, re-
plying to published reports that there
had been a break between Governor