The Washington herald., 1921-07-27
WINE, WOMEN AND
GOLD IN TRAIL OF
FUGITIVE BANKER
Hectic Career Revealed
As Chicagoan's Past
Is Uncovered.

CHICAGO. July IS. Wine anc
wild women, good times at the
cabarets, and an unholy greed for
gold appears to be the best answer
as to why Warren C. spurgin. pres
+Ident of the Michigan Avenue Trust
Company. is now a fugitive and the
Is short approximately
$500. 900.
Vigorous deniais have been made
by his relatives and former busi-
ness associates that there is
woman in the case, and 1t was en-
phasized that Spurgin had always
kent free of the wild night life OF
Chicago. But his associates out
side the bank tell a different story.
"a Flock of EN-
Miss Elizabeth Thompson. cashier
Of the American Discount Company.
who was arrested yesterday and
spent the night in detention home.
today admitted going with SpunSin
to various cafes. Closely following
the arrest of Miss Thompson. Chief
Investigator Newmark OF the
States attorneys Office, said Spur
gin had been hitting the high spota
In Chicago's underworld for months
before the bank went to the wall.
"It is true II was not case OF
a woman" said Newmark. 1T ap-
pears to have been a flock of them"
Mrs. Spurgin and her daughter,
Vivian, came back to Chicago to-
Aanlarad thew
had returned to offer what aid they
could to bank officials and State and
county authorities in Strengthening
out the tangle.
Mrs. SpurSin declared she could
not understand her husbands ac-
tion. 81 didn't know his affairs
were in such condition-it Is ter
rible." she said. He simply told us
he was going away <o- a time
that he was in trouble. He asked US
to leave the city. too"
Revelations concerning Spurgin's
financial operations came today as
bank officials prepared to submit
data to James f. McShane, assistant
States attorney. Spurgin, IL was
found, escaped. as far as is known
now. with only $4,000 of the banks
funds, $4,000 of which may be in
Liberty bonds.
Deals Are Uncsvered.
The two big deals he put through
during the last two days of his
incumbency as president totaled
some 100000. He operated, Off
cials believe. through some twenty
five dummy depositors." accounts
which on the books represented peo-
pie who do not exist
For the last two years these
dummy depositors." on Spurgin's
Say So" have been allowed to bor-
row considerable sums of money
from the bank and to give notes
for the sums. Up to two days be-
fore Spurgin left, these notes to-
tailed $63S,000. At that time Spur
gin appeared with S664,000 in
bonds of the Warren Oi. Company,
the Geneva Coal and Mining Com
pany and the Euradies Mining
Company. AS far as officials know
now, these bonds are worthIess-the
trust deeds on which they were is
sued never having been recorded.
SpurgiR entered the sG6t.OOO in
bonds to the credit of the dummy
depositors," taking up the s63s,O00
in notes which the bank held. The
remaining $4,000 he deposited to
his own account. He later drew a
check for $4,000 against this
amount, receiving it in cash.
Got the Cash.
The second deal was of a similar
variety. There was $4,000 in re-
putable securities held in the bank
as collateral for certain loans
Spurgin instructed the bookkeeper,
it is said, that 100000 had been
deposited to take up the note on
which these securities were given
as collateral. Here again the re-
naming s2S,o00 was deposited to
Spurgin's personal account, against
which he drew a check for s17,50C.
He thus received cash totalIng
$4,000. 1t is also believed that he
hypothecated his bank stock, receiv-
ing $4,000 from at least one con-