Evening star., 1921-08-26
SCHEMES involved
PERIL TO 48 BANKS
u. S. Attorney Says French
and Worthington Success Z.
Would Have Hit Them.
r. the Associated Press.

r. the Associated Press.
CHICAGO. August 26.-Tfe finan-
c1al failure of at least forty-eisht
banks and kindred institutions in the
middle west would have resulted had
all the operations of Charles w.
French and John w. Worthington
been carried to successful conclu-
sion. it was declared today by John
V. Clinnin. assistant United States
district attorney.
The statement was made after an
examination of s21.000.000 in spurious
securities and fraudulent notes seized
from various enterprises sponsored by
the alleged heads of the 'Swindlins
trust and the mail robbery group.
WHO, with associates, are being held
here.
Aimed at Prominent Men.
Not only were financial institutions
to be involved. but Some of the big
Eest financial men were listed as pros.
l'ects The names of hundreds of
prospective victims of the machina-
tions of the financial wizards were
found in the possession of Alva
Harshman, French's secretary, ac-
cording to the assistant district at
tOrney.
Among the names listed was found
that of Coleman Dupont. United States
senator from Delaware and wealthy
manufacturer of explosives. Scores
of other names prominent in the
financial world were found in this
ledger Of lambs"
Events today We're expected to
move swiftly in the expected denoue-
ment of further operations of this
group of so-called bond experts"
who, according to federal authorities.
soped to number some of the strong
financial institutions and business en-
terprises 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
sl5,000.0O0 in securities. is to be Ques-
toned today. An alleged confession
made by him may prove part of the
basis for the governments case, it
was indicated.
Banker May BE Arrested.
The arrest of 2. W. Davis. Ohio
banker and wealthy manufacturer of
Akron. who is said to be involved N
the case, was expected today, anl he
will probably be brought to Chicago
for questioning.
Joseph j.. Breitenstein, district at
torney of Cleveland. today said, after
a conference here. that the Cleveland
angle of the affair has been entirely
cleared up. A score or more of
Cleveland concerns are said to have
been involved in the schemes of those
under arrest.
The prime object of the alleged
confidence group was to dispose of
millions of dollars worth of notes
through many small banks in the
west and middle west. according to
statement of owen T. Evans, made
public today by MIR. CIinnin. Evans,
former national bank examiner, was
arrested with Worthington in con-
nection with mail thefts and has
turned government witness.
According to Evans, all the nego-
tiations that he handled were strictly
legal and notes he disposed of had
security back of them. He placed
loans in many small banks. according
20 his statement. Worthington, he
said. hired him to examine banks that
he intended to purchase for an east
ern syndicate that he represented.
EuIoEizes French.
Gerber talked freely after being
brought here last night. A eulogy on
he honesty and high moral character
OF French was among his first utter
ances
IT never knew a more honest, up-
right and decent citizen" he said.
speaking of the alleged head of the
swindle trust"
HE was always thinking of others
and willing to help them in any way
he could"
Gerber said French's chief object
was to dispose of notes through trust
companies he organized, but admitted
that some of these trust companies
had no capial behind them.
\ road from Cleveland to Kansas
City was one project sponsored by
French, Gerber declared.