Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-26
4S BANKS MENACED
BY HUGE SW|NDLE
Widespread Financial Disasters
Would Have Followed Success
Of Schemes, Says Prober
HAD DU POINT ON LIST
BY the Associated Press

Chicago. Aug. 26. The financial
failure Of at least forty eight banks and
kindred institutions in the Middle West
would have resulted had all the oper
ations of Charles w. French and John
W. Worthinpton been carried to sue
cessful conclusion. Il was declared to-
day by John V. Clinnin, Assistant
United States District Attorney.
The statement was made after an ex-
animation of $21 100000 in spurious
securities and fraudulent notes seized
from various enterprises sponsored by
the alleged heads of the ''swindling
trust" and the robbery group. who
with associates nre being held here,
Not only were financial institutions
TO be involved, but some Of the biggest
financial men in the country were listed
as prospects. The names Of hundreds
Of prospective victims Of the machina-
tions Of the financial wizards were found
il. the possession of Alva Harshman,
French's = secretary, according to the
Assistant District Attorney.
Had Du Points Name
Among the names listed was found
that of r. Coleman du Pont, United
States Senator from Delaware and
wealthy manufacturer of explosives.
Scores of other names prominent in the
irancial world were found in this
ledger Of lambs"
in contrast 20 the dealings Of the nl-
legged swindcrs IN millions and their
plans TO wreck scores of banks, a pic
ture was presented yesterday Of the ac-
t.vities of the same group in what Fed
cral authorities termed the 'piker'S
held"-clCaning war savings stamps.
Cashier Staub. Jr., dealer in for
cign stamps. told Mr.. Clinnin that
Worthington had tried to sell him some
war savings stamps, and when shown
stamps seized N raid on Worthing-
tons Office. declared they were can
cclcd stamps and had been cleaned by
being washed in acid.
Events today were expected to move
swiftly in the expected denouemcnt of
further operations of this group of So
called bond experts who, according
to Federal authorities, hoped to number
some of the strong financial institu-
tions and business enternrises of the
Middle West as their victims.
Elmer L. Gerber, brought here from
Cleveland last night, after his arrest
there led to the recovery of some $15.-
O00, 600 in securities. IS to be quoS-
toned today. An alleged confession
made By him may prove part of the
basis for the Governments case, ii was
indicated.
Tue arrest of Z. W. Davis. Ohio
banker and wealthy manufacturer of
Akron, who is said to he involved in
the case, was expected today and he
will probably be brought to Chicago
for questioning.
Joseph F. Brc!tcnstein, District At
torney of Cleveland, today said after a
conference here that the Cleveland angle
OF the affair had been entirely cleared
up. A score or more Of Cleveland con-
Germs are said to have been involved in
the schemes OF those under arrest.
The prime object Of the alleged conf
dence group was to dispose Of millions
OF dollars worth of notes through many
small banks in the West and Middle
West. according to etatcment Of Owen
T. Evans made public today by Mr..
Evans. a former national bank exam
iner. was arrested with Wcrthington in
with mail thcfts and has
turned Government witness.
According to Evans. all the negotia-
tions that he handled were strictly legal.
and notes he disposed of had security
back of them. He placed loans in many
small banks, according to his statement.
Worthington, he said. hired him TO
cxamine banks TINT he intended to pur-
Chas" for an Eastern syndicate that he
represented.
Lauds French's Character
Gerber talked freely after being
brought here last night. \ eulogy on
the honesty and high moral character Of
French was among his first utterGnCps.
II never knew more honest, up-
right and decent Citizen" he said.
speaking of the alleged head of the
"swindlc trust
He was always thinking Of others
end willing to help them in any way he
could.
Gerber said French's chief object was
to dispose OF notes through trust com.
panies he organized, but admitted that
some Of these trust companies had mo
capital behind them.
4 road from Cleveland 10 Kansas