Omaha daily bee., 1921-07-28
Grand Jury
May Probe
Action Comes as Result of In.
vestigation by Assistant At
torney General 7. J.
Mcclure
Judges Hold Conference

Grand jury investigations into the
failure of the Guaranty Securities
company and several other Omaha
concerns which recently have become
bankrupt, has been recommended by
I. J. Mcclure, assistant states at
torney general.
Attorney General Davis, in Lin
coin, admitted at noon yesterday
the calling of grand jury had been
taken up with district judges here.
He will come to Omaha today to
take action in the matter.
The proposed investigation will
bring to light manipulations in high
finance which will make fiction look
tame, according to Mr.. Mcclure,
who has been carrying on quiet in
vestigation of recent failures.
To Call Conference.
Judge A. c. Troup, presiding judge
of the district court here, said he
would call a conference as quickly
as possible, if Attorney General
Davis requested him to do so.
II can't say what attitude
the other judges will take in the
NATTER" said Judge Troup, nor dc
l care to commit myself on it al
present. There will be enough
judges in Omaha within few days
to hold conference and make a de-
cision."
The defunct Colonial Timber and
Coal company. whose destinies were
so closely entwined with that of the
Guaranty Securities company and its
bankrupt mother organization. the
Pioneer State bank, will also be a
subject of the proposed probe, Mr..
Mcclure said.
Hint Other Investigations.
1t also was intimated that the af-
fairs of the Skinner company, the
bankrupt Lion Bonding and Securi-
ties company, the Omaha Refining
company and another Omaha organi-
cation which has sold much stock,
would be looked into if the grand
Jury is called.
attorney General Davis has as
sured me that he will use every
means at the command of his office
to insist on bringing justice where
criminal statutes have been violated"
said Mr.. Mcclure yesterday.
Meet Little COOPERATION.
"In the investigations which l my
elf hive conducted we have met
with little, if any, cooperation with
those concerned. | am ashamed of
the law which permits bank wreck
ers Ito 60 on riding around in auto
mobiles when boys who acciden-
tally overdraw their bank accounts
are sent to the penitentiary. l have
urged, and will continue to urge,
grand jury investigation"
On the heels of the Guaranty Sc
curities company failure comes in
formation that stockholders in the
Lion Bonding company will receive
not a cent from the wreck of that
organization.
Discover Manipulations.
Although the auditing of the bond
ing company's books has not been
completed discoveries are being made
of manipulations which will result
in the filing of charges by the state,
it was intimated yesterday.
Asked if he planned to take any
action in the Brewerage Potash COM
pany, which has been investigated by
the government, Mr.. MCGUIRE ex-
planned that its failure occurred be-
fore he took Office.
Great losses were suffered through
out the state by stockholders in this
company, and four officers are now
under federal amdic.ment for using
the mails to defraud in the sale of its
stock
Audit Not Complete.
Asked yesterday whether the au-
dlting of the books of the Lion
Bonding ond Surety company had
been completed sufficiently to war
rant him to direct Attorney General
Davis to institute criminal proceed
ings against its officers, w. B.
Young, state insurance commits
sioner, said:
1T would be ridiculous to draw
any conclusion as to whether officers
are guilty of any criminal act. The
audit is far from completed. Cam
celled policies are coming into the
office in Omaha by the thousands
each day. From five to six entries
are necessary, and it may be weeks
before the audit is completed.