Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-08-25
j. s. CLAIMS BIC
'BUNCO' DISCOVERY


confession of the workings of an al
legged $6,OO0,000 swindle ring was
made today by Rudolph E. Kohn,
government officials announced, as
roundup Of members of the gang
continued.
Kohns story, according to District
Attorney John V. Clinnin, in charge
Of the investigation, revealed new
schemes Of the "swindle trust" run
ming into hundreds Of thousands Of
dollars.
Kohn was caught rcd handed"
is is said by Clinnin, who posed as
a credit man for a securities house
to which the gang attempted to sell
$4,000 worth Of notes signed with
the name of 2. w. Davis, Cleveland
millionaire.
Authorities have not been able to
determine whether Davis actually
signed the notes, or whether the sig
nature was a fake" Davis was in
fused to cooperate in aiding to hunt
down the alleged swindlers.
Besides nearly 100000 worth of
spurious securities seized when
Charles French, "the wolf of LaSalle
street" and partner of John S.
Worthington, was arrested, officials
today started search for other alleg-
ed fraudulent securities amounting
to millions Of dollars.
The details Of the huge conspiracy,
said to have been revealed by Kohn,
were withheld pending arrest Of six
additional alleged members of the
gang for whom warrants were is
sued. Six of the accused leaders
are already held.
Other Deals xntimated
Authorities indicated that the 9TH
er deals, however, were to be engi-
neered through the American Rub
Der company, of which Kohn was
vice president. Before his arrest
Kohn offered to sell 100000 worth
company to CIinnin, who was then
posing as Mr.. Smith, credit rhan'
for the securities company which
discounted the notes in the $4,000
deal.
On raiding French's rooms 100000
worth of the American Rubber COM
pany notes were seized.
Federal agents believe that the
gang swindled Davis out of $780,
600. This belief was based on a let-
ter which was seized in French's
rooms at the LaSalle hotel. Davis
appealed to French for financial help,
saying he would blow out his brains
unless you and your swindling gang
return to me part of the $2,500,000
which you have taken from me in
the last two years"
After using Davis to the limit by
selling worthless 1otes carrying his
name, according to the theory of the
play Kohn and the rubber company
of which he was an official as pawns
in obtaining money on alleged worth
less securities.
James Horace Fleet, one Of the six
under arrest, denied any connection
with the gang.
French is an honest, Woodworking
man, he said. [ know of nothing
crooked in his daIings.
The money we tried to raise on
the nots was for the building of q
cement road between Cleveland and
Akron.
"The s2.5OO,OOo authorities say Da.
Wis was cheated out of was used by
him for the purchase of the Akron
Canton and Youngstown railroad
This was later sold to Arthur Stew
art, Goodyear Tire and Rubber Of
fetal, at a good profit"
DAVIS SAYS IT'S ALL
''NEWS;'7 is PROMINENT MAN
CANTON, O., Aug. 23.-"It is all
NEWS " HE, Sdlu a. W. Law ID, NCill~
ton and Cleveland manufacturer,
when asked today regarding notes
bearing his name as president of
the Winton Automobile company of
Cleveland, which were used by Chi
cago men in an effort to borrow $780,
600 in that city.
1T cannot understand why I should
be dragged into this. They are
twenty years subsequent with it. l
have known French for years and
have loaned him THOUSANDS of dol
lars in the past. To. connect me
Davis left Canton for Cleveland
early today He divides his time
between the two cities. Although
he has a large residence, he seldom
Winton company of Cleveland and
is president of the Diamond Port
land Cement company, of Middle
Branch, near Conton. He also has
numerous other industrial interests.
Davis has been rated as million.
aire for years. Recently he sued
aonther Canton man, a former BUSH
ness associate, for more than ST.
100000, which he claimed was due
him. The case was settled out of
sTRoBEL, AKRON REAL
ESTATE DEALER, HELD
AKRON, o., Aug. 23.-Charles K.
Strobel, president OF the Charles X.
Strobel Real Estate company, was ar
rested last night and turned over to
a United States deputy marshal from
Cleveland.
Strobel, according to police, is
wanted in connection with an alleged
100000 swindle scheme for which five
men were arrested in Chicago yester-
day.
Strobel said he was unaware Of
any federal violation.
eff there is anything wrong with
the transaction I do not know about
it," he told police.