The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-08-24
100000 THEFTS
NOW LAID TO BAND
Whole Country Flooded With
Worthless Notes and Stolen
Bonds, Confession Shows.
CLOSE IN ON LEADERS
Alleged Accomplices Of Wor.
Ellington in Robbery Trust
Put Under Arrest.

CHICAGO, Aug. 2s.-Mi:l,ons of dol
lars of worthless notes, stolen bonds,
fraudulent deeds of trust and forged
certificates of deposit have been flung
or the markets OF the country. Federal
agents declared to-day after investi-
eating operations Of q band alleged to
have been headed by Charles w.
French and John w. Worthington.
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
uriearthed by Federal agents.
Six million dollars worth of stolen
bonds, nearly 100000 in worthless
notes and hundreds of thousands of
dollars worth of trust deeds and
forged certificates Of deposit have been
traced by Department OF Justice
agents, it was declared.
The revelations resulted from a con-
fess!on accredited 10 Alva w. Harsh
man. who was declared to have been q
private secretary to French and who
surrendered to-day. He was alleged to
have told Of deal negotiated by French
for the purchase Of bank In the middle
West that involved the exchange Of
100000.
Many Big Firms Drawn In.
Washington man. according to
Harshman, was to obtain certified
checks for 100000 there. These checks.
he said, were to be presented to the bank
owners and when the band gained con-
troll Of the establishments they were to
cash all certificates Of deposit the bank
owned. The money. he said. would then
be forwarded to the Washington man.
who would deposit It before the certified
checks on the original transaction were
cleared and returned. Many other SINH
lar deals were also described.
In another case II 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. il was said, was cashed
and the bank left holding the securities
which would be identified and reclaimed
when It tried to realize on them.
"A
have signed notes used by the bank
were: Curtis Printing Company. Akron,
Ohio, 500: Mackey Truck Company,
Akron, ST. 600; Porcupine Mountain
Lumber Con pany. Cleveland. $4,000
Portage Market. Akron. $4,000: Hen
niger Plumbing Supply Company, Akron.
$4,000; SchwartZer Wrecking Com
pany, Dayton, Ohio. 100000: Midwest
Automobile Sales Company. Dayton,
$4,000; Dayton Financing Company.
DAYTON. 100000 T. w. Davis, Canton,
$500. 900; Apple Financing Company,
Dayton. s3oo. 900 American Rubber Com
pany, Chicago. $4,000: y. NJ. Strong
Metal Producers Company. Cleveland,
$4,000; Cleveland Home Manufacturing
Company. $4,000; George B. Wickens.
Lorain, Ohio. 100000. and the Portage
Packing Company. Akron, $1,000.
Alleged Leaders In Net.
IN addition about $500. 600 in notes
supposed to have been signed by the
American Rubber Company. have not
been found. The total notes known 10
have been issued was put at s1,602,00O
by Federal officials to-day.
It was also revealed that the band
was operating in Kansas City. According
to John v. Clinnin. Assistant District
Attorney, all notes issued by the band
were disposed of by the Securities Com
pany OF Kansas City
According to the alleged confession
made BY Harshman the band made
considerable money disposing OF real
estate mortgages.
Another deal said 70 have been made
IN Milwaukee by the band is being in
vestigated by Government agents. II
was declared 10 have netted the swim
dlers $780, 900. II was said that A. T.
Strelzin, who was arrested to-day In
Milwaukee, will be questioned regarding
this transa ction.
All the members Of the band now ur.
der arrest are said TO have been named
by the former secretary as implicated
in a swindle scheme to sell $4,000
worth Of alleged fraudulent bonds. signed
BY Il. w. Davis. vice-president or the
American Rubber Company, who Ia said
TO have lost s2.500.00o In the operations
of the gang
Their arrest at that time Is said Is
Clinnin to have saved a wealthy resident
or Washington from loss of $500. 0O0
in an alleged swindling scheme being
planned.
Worthington was arrested some weeks
ago and Ia being held In 500, 600 bonds
IN connection with mail robberies total.
ling approximately 100000. French
alleged TO he his right hand man, was
arrested yesterday with several OF his
associates. To-day =. X. Strobel was
taken into custody 10 Akron. Ohio, and
a. x. streziin was arrested in Milwau-
kcc,
"Harshman's arrest was voluntary"
said Col. Cllnnin. ia speaking or the
former secretary and alleged confidence
man warrant had been issued for
him, charging completely to use the mails
Continued OF, Seventh pcGe.
The Greerbrier. The White and Cottages.