Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-08-24
FORCED BONDS
FLOOD MARKET
AGENTS CLAIM
Worthingtons Operated
All Parts of country.
Say Federal Sleuths.
Secretary Tells Police
of Operations Of Big
Swindle Gang.

Chicago, Aug. 23-Untold million.
stolen bonds, fraudulent deeds of trus
and forged certificates of deposit have
been flung on the markets of the coun
try, federal agents declared Tuesday
after investigating the operations of 6
band alleged to have been headed by
Charles W. French and John W. Wor-
thington.
Banks. bond houses, investment Sc
curity brokers and wealthy business
men from coast to coast were declared
to have been the victims or dupes of
one of the most gigantic swindles ever
unearthed by department of justice Of
ficials.
Three Million Traced.
Six million dollars worth of stolen
notes and hundreds of thousands of dol
certificates of deposit have already
been traced by department of justice
agents, it was declared.
The revelations resulted from de-
tailed confession accredited to Alya
w. Harshman, who was declared to
have been private secretary to
French. and who surrendered to fed
eral officials. Harshman was alleged
to have told of deal negotiated by
French for the purchase of hank in
the middle west that involved the ex
change of SS06.0O0 in cash.
A Washington. d. c., man, accord
ing to Harshman. was to obtain GER
titled checks for 100000 there. These
checks. he said. were to. be presented
to the bank owners and when the band
gained control of the establishment.
they were to cash all the certificates
Of deposit the bank owned. The money,
he said. would then be forwarded to the
man. who would deposit it
before the ceStified checks on the orig
lnal transaction were cleared and re-
turned. Many other deals of like
type were also described.
Stolen Bonds Transferred.
In another case. it was asserted, a
large amount of stolen securities were
placed with a small country bank in
return for a certificate of deposit. The
deposit slip, it was said. was cashed,
and the bank was left holding the Sc
curities which would be identified and
reclaimed as soon as it tried to real
ize upon them. ,=-...
In addition. about $5O0,OOO in notes.
supposed to have been signed by the
American Rubber company, have not
vet been found.
1t was also revealed that the band
was operating in Kansas City. Accord
ng to John V. Clinnin. acting district
attorney. all of the notes issued by the
band were disposed of by the Securi-
lies company of Kansas City. That
he said. would sell the
notes and issue trust agreements as
guarantee of the investment.
According to the alleged confession
made by Harshman, the band made
money disposing of real
,state mortgages. He named Mrs.
Della b. Howard. of Portland. Ore.
is one of the victims. He said that
French offered to sell mortgage on
Ter property at De Aura Beach, Ore.
or her. She gave him the mortgage
which he sold for $12, 600. but telling
Ter that he was unable to sell it. he
aid. The face value of the mortgage
vas S17.5O0.
Worthington was arrested some
reeks ago and is being held in $1O0.0O
onds in connection with mail robberics
otalling approximately $6.OOO,000. |
french, alleged to be his right hand |
IAN. was arrested yesterday with sew
rI of his associates. Tuesday, G. X.
'trobel was taken into custody in |
Akron, Ohio. and A. f. Strelzin was
rrested in Milwaukee,.