Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-08-23
TWO OTHERS IN
FINANCE BAND
ARE ARRESTED
Continued From Page ONE,

!
oined the band IN an attempt to retrieve
| his losses, said TO total $245, 900.
at was the most important statement
we have yet received in this sensational
case" said CIinnin.
1t was through Harshman's confession
( taht the arrest of Davis, former head OF
the Winton Automobile Company, was
ordered earlier in the day, officials said.
Federal authorities refused to reveal the
details Of Harshmans confession, al
Though admitting ne had told all" It
was stated Harshman had offered to ap-
pear as a Government witness in the
prosecution Of the band. 1t is likely he
will turn States evidence" His bail
was fixed at only $1,000.
Kohn's story, according to Assistant
District Attorney John Y. CIinnin, iii
charge Of the Investigation. revealed new
! schemes of the "swindle trust" running
into hundreds Of thousands Of dollars.
Kohn was caught red handed by Clin-
min who posed as a credit man for a
securities house to which the gang at
tempted to sell $4,000 worth of notes
signed with the name of T. W. Davis,
! Cleveland millionaire
! Authorities have not been able to de-
terniine whether Davis actually signed
the notes, or whether the signature was
a fake. Davis was indicted, officials
said, because he refused to cooperate in
aiding to hunt down the alleged
| swindlers
/ OFFICIALS SEARCH
FOR OTHER FRAUDS.
Besides nearly 100000 worth of
! spurious securities, seized when Charles
W. French, 'the wolf Of La Sale street."
and partner OF John W. Worthington,
was arrested, officials started search for
other alleged fraudulent securities
amounting to millions OF dollars, after
Kohn told his story.
The details of the huge conspiracy said
to have been revealed by Kohn were with
held pending arrest of six additional al
legged members Of the gang, for whom
warrants were Issued.
Six of the accused leaders already are
held.
Authorities indicated that the other
deals were to be engineered through the
American Rubber Company of which
Kohn was vice president Before his ar
rest Kohn offered to sell $4,000 worth
Of notes of American Rubber Company to
/ Clinnin, who was then posing as Mr..
/ Smith, credit man" for the securities com
pany which discounted the notes in the
/ 500, 600 deal
On raiding the Worthington rooms
( 100000 worth OF American Rubber Com
pany notes were seized
/ OHIO MILLIONAIRE
Is sWINDLED,
Federal agents believe the gang swim
died Davis out of S2,5O0,00o, as revealed
in letter which was seized in French's
rooms at the La Sale hotel. Davis ap-
/ pealed to French for financial help, say
/ ing be would blow out his brains unless
/ you and your swindling gang return to
me part OF the s., 10000 which you have
| taken from me IN The last two years"
After using Davis to the limit by sell
Ing worthless notes carrying his name,
according 70 the story OF the investiga-
ton, the gang planned to play Kohn and
the rubber company, Of which ne was an
official. as pawns in obtaining money on
alleged worthless securities
James Horace Fleet, one of the six IN
der arrest, denied any connection with
the gang.
French is an honest, hard working
man." he said. 81 know of nothing
crooked in his dealings
The money we tried to raise on these
notes were for the building of a cement
road between Cleveland and Akron.
1 THE $4,000 authorities say Davis
was cheated out of was used by him for
;
Youngstown Railroad. This was sold
! later to Arthur Stewart, Goodyear Tire
and Rubber Company official, at good
/ profit"
I Fleet said Davis is worth $4,000, 900
French and i've alleged associates were
arrested in an elaborately furnished suite
in a hotel. French previously had been
arrested in connection with the opera
tons Of Worthington, but had been re-
leased on his own recognizance, after
telling Col. John V. Clinin, assistant
United States attorney, what purported
to be the history Of Worthington's al
legged operations.
Among the men for whom warrants
have been issued, but who have not been
apprehended. are A f. Strelzin, a NIL
waukee broker; Ernest strelzin, his
brother; Richard Weinstin. Timer L. Ger
Der and II. L. Peak, Cleveland bond
statesmen; C. K Strobel, Akron, Ohio,
and Alva Harshman, already at liberty
after his arrest as a confederate Of
Worthington.
USED DTCTAPHONE
AND TAPPED WIRES.
Apprehension of the members of the
band followed a probe replete with the
melodrama of tapped telephone wires,
| secret codes and dietaphones.
It has not been revealed just how the
alleged swindling Of Davis was accom-
plished. His connection was discovered
when Federal agents leaFned French and
Worthington had been dfscounting Davis
notes for huge sums in Cleveland and
other eastern cities. Davis is said to have
become criminally involved as a result
of his efforts to retrieve his vanishing
fortune.
Rudolph e. Kohn vice president Of the
American Rubber Company, a 100000
tire concern, is one of the men under ar
rest. He is said to have made a complete
confession Of his knowledge of the opera
lions of the band.
Kohn was arrested after he had en-
deavored to discount at the Merchants &
Manufacturing Securities Company $780,
600 worth of sixty day notes signed ~
S. w Davis.