Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-08-25

price being paid down and a one
year note, due mex January, given
for the remainder. Thornburg was
installed by French as president, IN
der, Harshman's direction.
The bank was then hypothecated
with a Madison, Wis, bank. AS a
result the $4,000 paid. the cashier on
his home was the only money ac-
tually involved in the deal.
SIT was a plain a Of 'kiting',"
Colonel Ginning explained today.
''Harshman tells me that French then
sent a bundle Of the bands notes to
him, with instructions to put them in
reserves and undivided profits. Harsh
man says he refused. I rather be-
1ieve that he did prevent the footing
OF the bank" ~ s
"Harshman's vague reference to the
Ohio man whose certified .checxs
were used, eventually led us. to z. w.
Davis OF Cleveland and Canton, a di-
rector Of the W1nton Motor company.
Harshman claimed some Of Davis
notes given to French and totalline
100000 were hidden in Harshman's
home at Milwaukee. I sent him there
yesterday In custody of a secret serv-
ice man to get the paper. They are
due here today with it."
Brought &s,00o,0oO.
Morris Wolfe, the agent, arrived, this
morning with not 100000 but more
than $3,00o,0o0 in notes and securi-
ties and several bundles of records,
papers and correspondence which
Harshman had turned over to the
government at Milwaukee yesterday.
'.At this end we. learned through
dtctagraphs," Colonel Clinin said,
THAT French and his friends were
negotiating through 4 Chicago trust
company for the purchase of a Min
nesotA bank. We f~orestalled that
deal and warned the bankers. We
learned Of plans to place some Of the
banks notes In a Chicago bank. We
directed the banker to- play them
along and keep US advised. We learned
Rudolph Kohn, president Of the
American Rubber company, which
81, 500 rainc0at store four or five years
ago to a million dollar paper COM
pany, almost over night, was trying
to market $4,000 worth OF Davis
notes.
Produced, False Report.
I'VE directed thep respective pur-
chasers to ask for a financial state
ment on Davis. Kohn explained Da-
Wis was a very wealthy man who never
made financial statements. Eventu-
ally he produced what purported tc
be rating from "a we'll known com.
mercial agency.-We found a clerk IN
the agency mad been paid $40 to alter
the report, emitting certain parts.
A the final interview I appeared
IS credit mar for the note purchas.
ers. We asked Kohn for the agency
report again. He explained he had
left it at his hotel. Then I gave hin
a check for $28, 500, took his receipt
and the notes, and arrested him as h.
started to leave. In hts pocket ".
found the falsified report on Davis
The raid on French'sn suite and tn,
arrest Of a half dozen Of the alleged
principals here and al many more IL
Milwaukee and OHIO cities followed.
The Investigation of French's activi.
ties Is. being carried on today in severa
widely separated points outside of Chi.
cago, including Kansas City, Ottawa
Ont, Victoria, B.. c., and Cleveland
Canton, Akron and Sandusky,t Ohio
Centralia and Mount Carmi, Ill, anc
other, places. Colonel Clinnin is seek.
ing more Information about 90 com.
panies which French is said to have
organized.