New-York tribune., 1921-07-21
e m 1lbezzler's 5
sl,l87,O00Gave
Pigs'Steal,, Heat
Bankers Gathered to Help
Packers Embarrassed by
Defalcations Learn of
Strange Use of Funds
De Luxe Barns for Cows
Ingenious Appropriation of
Cash Built Ballroom
and Lake for Visitors
Special Dispatch to The Tribune.


(Cy) Thompson. Minnesota genius"
who rocuspocused Main Street towns
into Utopian villages, filched from his
former employers, George A. HORNED
& Co., Austin, Mimi, packers, the sum
of Sl,187, 900, according to statement
made to-day at the close of credit
ors' meeting held in the First National
Bank.
The announcement was made after
turbulent session participated in by
bankers from New York, Minneapolis
and ST. Paul and officials of the First
National Bank of Chicago. whose check
for $4,000, which never reached the
HORNED company, was the cause of
Thomson's arrest.
/ Thomson is now under arrest in
Austin after making the most amazing
use of the missing $1,0o0,ooo ever
charged to sn embezzlcr. Though
drawing only $4,000 year as the
firms comptrollc~. Thomson became
the towns leading phllanthropist and
developed three stock farms which
were the wonder of tourists. He in
vested in $4,000 worth of Holstein
cattle and installed them in superb
quarters equipped with vacuum cleaners
for massaging the cattle and with fly
traps arranged to kill the flies with
poison gas.
Built a Jazz Palace
On another farm Thomson went in
for scientific swine raising and kept
his drove in steam heated, electric
lighted hog pens. Thomson erected a
small hotel on one of his farms to ac
comm odate tourists, and included with
it dance hall and an artificial lake.
Besides all that he built inrumera
type and erected a clubhouse for his
employees and a playground for their
children.
The HORNED concern has stood on
the brink of financial ruin for the last
ten days as the result of Thoms sons
embezzlements, and creditors fairly
burned the rails to attend the confer
ence in Chicago. 1t is understood that
nearly $4,000,0O0 in demand and short
term notes of the concern are held by
banks, brokers and private individuals.
The statement admitted that the
HORNED company is seriously embar-
~
that the creditors have agreed to hold
back their notes until such time as
the concern can conveniently make
payment.
A Wizard at Finance
E. q. Brown, vice-president of the
First National Bank, who presided at
HORNED concern would be able to make
good the losses suffered as the result
of Thomson's irregularities within two
or three years. He added that in the
mean time funds would be available
for the operations of the company, in
cluding livestock purchases.
A representative of the creditors
will be sent to Austin to manage the
financial affairs of the company, Mr..
Brown said. It.was declared that there
would be no reorganization of the com
pany, but it is expected that in the
near future the Indebtedness caused
by Thomson's embezzlement will be
funded in the form of bonds.
Officials of the company and Mime
apolis and St. Paul bankers were vigor-
ously censured by the New York and
Chicago bankers, it is understood
They were at loss to understand how
Thomson could have embezzled such
large sums and then throw the money
into bizarre agricultural and COM
munity life schemes.
Thomson's system was intricate, in
volving three and often q FIVE cor
nered method of kiting checks. The
pawns were the correspondent banks
of the firm in various parts of the
country. The checks were drawn
against "transfer funds" on deposit
He managed to keep "in transit be-
tween $500,000 and s1,000,oO0 to keep
his operations hidden. The figures
were kept constantly in his mind
Checks were dated SO as to keep ahead
| of auditors