Cottonwood chronicle. [volume] (Cottonwood, Idaho) 1917-current, 1921-01-14
ROB CALLAHAN
OF $35O,000
USED FORGED BONDS
WE'RE FACING EN-
POSTURE.

opOkdfle, Jan. J.-lH lie ll1Iii vi
Millholland & Iough, municipal
bond brokers of Spokane, have
embezzled more than $350,000
from James F. Callahan of Wal
lace, Idaho, millionaire mining
man of the Coeur d'Alenes ac-
cording to Jay E. Hough a men,
ber of the firm. who surrendered
himself to the authorities here
this afternoon.
Prosecuting Attorney Lindsey
Immediately after receiving the
confession of Mr.. Hough, issued
a warrant for the arrest of Mil
holland.
According to the confession
of Mr.. Hough, he and Mr.. Mil
holland had entered into a sui
eide pact and were to have shot
themselves in their office at II
o'clock last night. This agree
ment was reached Friday noon,
according to Mr.. Hough. when
he and Milholland discovered the
shortage of the Callahan account
could no longer be concealed.
Mr.. Hough, according to police
advices, said the suicide agree
ment was not carried out be-
cause after he had consulted an
attorney regarding the matter,
he was convinced the only thing
for him to do was to make a
clean breast" Hough is being
held in Jail in lieu of $4,000
bonds.
Mr.. Hough stated to the police
that the embezzlement was achi-
eyed through forged bond S
worth S315.000 and spending of
a large cash fund of Mr.. Gala
hams over which the firm had
direct supervision. The forged
bonds, Mr.. Hough declared, were
delivered to Mr.. Callahan instead
of genuine bonds and the inter-
est coupons on them were paid
by he and Milholland at regular
intervals. In this way he de-
clared Mr.. Callahan did not dis
civer that the bonds he holds are
forged.
The money obtained through
the forgery of the bonds, accord
ing to Mr.. Hough's statement to
the police was spent in speculat-
ing on the New York stock eX-
change.
Millholland Takes Life.
Spokane, Wash. Jan. 9.-John
B. Milholland of the investment
firm of Milholland & Hough OF
Spokane was found dead by the
police here tonight when they
entered his home to arrest him
on a warrant charging embezzle-
ment. He had committed sui.
eide by shooting, the police said
The issuing of the warrant fol
the arrest of Mr.. Milholland was
the outgrowth of charges by Jay
B. Hough, his partner, which the
police state were contained in q
confession to them by Hougt
earlier today that he and Mil
holland had embezzled more
than S350,000 from James F
Callahan, millionaire Wallace
Idaho, man.
Mr.. Callahan, who resides a
Wallace, when informed by tn,
authorities over the long dist
ance telephone of Mr.. Hough''
statement and Mr.. Milholland'.
death, said he was great.
shocked at the news" and would
come to Spokane tomorrow.
Mr.. Hough in his statement t.
the police declared that they hat
lost the entire amount they OBJ
tanned through embezzlement
He said the market was agains
them nearly all the time and tina
only once did they make a bi,
gain, $5S,000 in cotton.
The bonds forged, according Il
Hough. were municipal an,
school bonds. He said it wa
the usual thing for brokers t
have them printed.
The body of Milholland wn
found in a locked room at hi
residence. His wife stated h
had returned home early in tn
evening and shortly before goin
to the room where he body wa
found he had told her of hi
dealings with the bonds.
The two small children of Mi
holland were put to bed earl
and they slept through the Ell
tire affair. Police had bee
watching the residence sine
early evening.