South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-08-24
MILLIONS OF
DOLLARS LOST
BY U.S.. FIRMS
Alva W. Harshman, Alleged
Member Gang" Confesses
Plot to Federal Men.
FRENCH RING LEADER
Worthington's Right Hand
Man Arrested Following
Startling Stories.

CHICAGO. Aug. 29-Nriuiona ~
dollars Of worthless notes, stolen
bonds, fraudulent deeds OF trust and
forged certificates OF deposit havs
been flung on the markets OF tho
country. federal agents declared
Tuesday after investigating opera
tons Of band alleged 10 have been
headed by Charles w. French and
John E. Worthington.
Banks, bond houses. fnvestr,e-e
security brokers and wealthy husi-
ness men from coast 20 coast were
declared 10 have been the victims II
dupes OF one Of the most gigantic
swindles ever unearthed by federal
agents.
Six million dollars worth OF stolen
bonds, nearly $4,000. 600 in worthless
notes and hundreds OF thousands Of
dollars worth OF trust deeds s~f
forged certificates Of deposits have
been traced by department OF ius-
tee agents, Il was declared.
Harshman Confession.
The revelations resulted from n
confession accredited % Alva e.
Harshman. who was declared 70
have been a private secretary u
French. and who surrendered Tues
day
French was once known I'm tho
west and the far west az railroad
magnate. He rlanned railroads 90
cover Ohio. and then. it is alleged.
without waiting 20 get them in on
Grafton he startled California with
a big project. including a steel r7tV
| at an Diego and a railroad from
! mat city 70 Denver. French took "A
party OF capitalists n the scene n
a private car rented him by no
Pullman company ar s35 a. day. Ar
ter using the car for los DAYS
French IS said 20 have neglected u
pay for its use
The party was taken 20 the Fed
! eral building and. with the excep-
ton Of Mrs. Hawkins. held under
$4,000 bonds each by United states
Commissioner Glass. He was al
legged 10 have told OF deal neg'ts-
ated by French for the purchase az
a bank in the middle west that in
N-A1 ~ llril ef- OF = HNNsUNN-
Cash Certificates.
A Washington. p. c.. man. accord
ing 70 Harshman, was 20 obtain GER
titled checks for 100000 drawn
there. These checks were 20 be Dre-
sented 20 the bank owners. and when
the band gained control OF the ee-
adjustment they were 20 cash all
| certificates Of deposits.
The money. he sa.d. would then
| be forwarded 20 the WASHINGTON
man, who would deposi. it before
the certified checks on the original
transaction were cleared and re-
turned Many other similar deals
were also said 20 have been made.
In another case. IL was asserted.
a large amount Of stolen securities
were placed with a small country
bank in return for a certificate Of
/ deposit The deposit slip. 10 was said
was cashcd and the bank left hold
ing the security which would be
/ Identified and reclaimed when j.
tried 10 realize on them.
Names Of Firms.
Among names Of the firms al
legged 20 have been sirncd 20 the
notes used by the banks were.
Curtis Printing company Akron.
I o, $4,000; MacEey Truck COMPANY.
/ Akron, $4,000. POrcupine Mountain
| Lumber company. Cleveland. slO.-
900; Portage Market. Akron. s21.-
I 900. Heninger Plumbing supply
company. Akron. $4,000. Schwartz
CT Wrecking company. Dayton. O..
| o., 800, 900; Midwest Automobile
Sales company. Dayton. Dayton
Financing company. Dayton. $780,
600; Z. ". Davis. Canton. o.. $780,
/ 600: Apple Financing company.
Dayton. 100000, American Rub
Der company. Chicago. $4,000. II.
| ". Strong Metal Products company.
Cleveland. $4,000. Cleveland Home
Manufacturing company. $4,000:
George B Wickens Lorain. o.,
100000, and the Portage Packing
company, Akron. $4,000.
Notcs Unbound.
IN addition about $500. 900 IN notes
supposed 20 have been signed hy The
American Rubber company have not
+ been found The total notes known
\ 20 have been issued was put az 81
$4,000 by federal officials Tuesday
/ L was also revealed that the band
was operating III Kansas cry. Ac-
cordirE 20 John y. CI1nln. acting
district attorney. al OF the notes
issued By the band were disposed of
I by the Securities Company OF Kansas
I city.
/ According 20 the alleged confess
sion made by Harshman. the band
made considerable money dLsposins
Z OF real estate mortgages.
Another deal said % have been
made IN Milwaukee by the band Is
being investigated by government
agents. II was declared 20 have net
ted the swindlers 100000. u was
said that A. +. S-re-z.n. who WIS
ARRESTED Tuesday IN Milwaukee WI
be questioned regarding this trans
action
Worthington was arrested some
weeks ago and e being held in $780,
! 600 bonds IN connection with the
mail robberies totalling approNmat-
ely 100000. French. alleged 20
be his right hand man. was arrested