The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1921-08-26
CHICAGO BUNCH
CONTINUED From Page One.I

man says he refused, / rather be-
lieve that he did prevent the looting
of the bank"
Federal Agents Resume ssarh.
With $27.000,000 in stocks, bonds.
notes and other securities-some
good and some bad-in their posses
sion, federal agents today renewed
their search for the end of the gol-
den rainbow which John w. Worth
ington. Charles w. French and their
associates spread across the coun-
try in what the agents believe to be
one of the greatest "swindle trusts"
on record.
Colonel John v. Clinnin. assistant
United States district attorney in
charge of the investigation today
fixed $50,000,000 as a conservative
minimum for total operations.
Twenty companies said to have
been organized by French with a
capital stock of $21,000,000 and in
which he was selling stock are under
Investigation.
Sent Agent for Davis Notes
"Harshman's vague references to
Ohio man" whose certified checks
were used. eventually led US to q. w.
w. Davis of Cleveland and Canton, a
director of the Winton Motor Com
|pany. Harshman claimed some OF d.
Wis votes given to French and total
Ing 100000 were hidden in Harsh
mans home at Milwaukee. sent him
there yesterday in custody Of secret
service man to get the paper. They
are due here today with it,"
Morris Wolfe, the agent, arrived this
morning with not 5000 but more
than 100000 in notes and securities
and several bundles OF records. papers
and correspondence which Harshman
had turned over to the government at
Milwaukee yesterday.
Were to Buy Minnesota /.
+ "At this end we learned through our
that French and his friends were ne
gotiating through Chicago trust COM
pany for the purchase OF a Minnesota
bank. We forestailed that deal and
warned the bankers. We learned of
plans to place some of the banks notes
in Chicago bank. We directed the
banker to play them along and keep
us advised" We learned Rudolph
kohn, president of the American Rub
Der Company which. under French q
tutelege grew from $4,000 raincoat
store four or five years ago to a mil
lion dollars paper company almost ov-
er night, was trying to market $780,
600 worth Of Davis notes. @
Wanted Davis Statement
eve directed the prospective pur-
chasers to ask for financial state.
ment on Davis. Kohn explained Da-
Wis wGs very wealthy man who never
made financial statements. Eventu-
ally he produced what purported to
be rating from a well known CONNER
cial rating agency. We found a clerk
in the agency had been paid $40 to al :
ter the report, emitting certain parts
"At the final interview ! appeared
as credit man for the note purchasers
We asked Kohn for the agency report
again. He explained he had left II
at his hotel Then gave him a check
for $28,500. took his receipt and the
notes, and arrested him as he started
to leave. In his pocket we found the
falsified report ON Davis"
/ The raid on French's suite and the
arrest of a half dozen Of the alleged
principals here, and as many more in
Milwaukee and Ohio cities followed.
The investigation Of FTench's act
ivities is being carried on today in sew
eral widely separated points outside oil
Chicago, including Kansas City, Otta-
wa, Ont, Victoria, B. G. and Cleveland
Canton. Akron and .Sandusky, Ohio
Centralia and Mount Carmi, ILL.,, and
other places. Colonel Clinnin is seek
ing more information about twenty
companies which French is said to
have organized. =.