Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-08-24

q face value of S15. O00, 900 were seized
in Cleveland today q climax to the
amazing activities of the French
WorthinEton ring OF "frenzied fnan-
cIers." They were found in posses
sion of Elmer e. Gerber, WHO is said
TO have made q confession. The
seizure was made under orders from
Federal authorities here.
CHICAGO. Aug. 24-Spurious stock
transactions and business promotion
schemes totaling close TO S2O.00O.OOO, were
traced today to the gang alleged to have
been headed By Charles ". French.
Federal Investigators made this an
nouncement, after spending the night go
ing over seized records and confessions
made By three of those arrested in con-
nsetiOn with the gangs work.
Nationwide governmental probe of
the Worthington-F French wolves of
finance" now looms
The Governments case. involving
sharges Of frenzied financial operations
h which millions were mulcted from
tuckless investors, will be laid before
William J. Burns, head Of the United
States Secret Service. Il was intlmated
Burns would take personal charge Of the
probe.
WILLIAM ]. BURNS
WILL INVESTIGATE.
Revelations Of the bands operations
have reached such staggering proper
tons as to completely Outgrow the To-
cal investigation. Edward J. Brennan.
chief OF the Department Of Justice agents
here. Is now en- route to Washington TO
fav the details before Chief Burns.
It also was announced that John r
Walker, official OF a leading bank, was
the Washingtonian sought in connection
with the bands attempt 10 purchase a
hank in Milwaukee He was the man
whom the band intended 10 defraud Of
$4,000.
Twenty more persons. many Of them
supposedly financial leaders in the East
ana Middle West, viii be indicted from
evidence now in the hands Of Assistant
United States District Attorney John v
Clinnin, be announced this afternoon
They were drawn into the net by the
amazing confession Of Alva ". Harsh
man Of Milwaukee. one Of the chief aides
to Charles ". French. the financial
shark" aud Honest John Wcrthlnstun.
alleged leaders OF the bnnd theft trust
Investigators traced operations Of the
gang through freDzied schemes Of bank
ing. check kiting, broken fortunes and
bankruptcies.
One death already has been attributed
TO the bands Vaccinations. The victim
was c. II. Llttleton Of Dayton and Akron.
Ohio. After he had been stripped Of his
last penny by the band he followed
French to Chicsgo 10 plead for mercy.
Police found his clothes the next day
on the lake front. His body never was
found.
New evidence showed at least seven
teen companies involved in the specula-
tons. They included banks, railroads.
toll roads. house wrecking electrical
construction, automobile plants. 8ccesso-
ries. metal. furnitures. meat packing, ce-
ment. lumber and plumbing concerns.
The rsmihcations OF the gang caused
Col. John Y. Clinnin. assistant United
States district attorney, TO remark as he
completed long period of. Investigation
that I'm 80 nutty if this thing grows
much greater"
The gang specialized in bank wreck
ing. according 10 evidence Federal agents
said they had uncovered At the time
the gangs operations were exposed thsy
were on the verge Of completing a deaf
70 buy a bank in Milwaukee for $500 900.
According TO the plan Of operation
certified checks on a Washington ID. c.
bank for 100000 would be given for
the first payment for the Milwaukee In
control Of the bank they would issue
$1,000, 600 certificates OF deposit on which
money would be borrowed in Chicago
and rushed to Washington to cover the
checks. With the bank in their hands
and dummy officials and directors they
could proceed as they desired.
Federal agents in Washington have
been asked to arrest cashier Of bank
there who would have handled the
checks and covered up the transaction
az that end.
A E. Strslzin OF Milwaukee, who was
TO have engineered the deal from that
end, Is held.
FOUR BANKS
WERE WRECKED.
Evidence that four other banks were
wrecked in this manner BY the gang was
obtained by the Investigators and negO-
tiaions to obtain control OF additional
financial institutions were exposed.
Operations OF the gang in the south
west through the Pacific Trust Company
of Independence, Mo-, and the Guarantee
Securities Company Of Kansas City, were
uncovered.
IN addition 20 working with banks. a
string Of fake manufacturing concerns.
organized out OF thin air or from some
concern on its last business legs, was
used By the "swindle trust"
Fraudulent securities would be issued
on these companies and sold wherever
there wes a market.
The confession Of Alva Harshman, who
was secretary 10 French. was obtained by
C1innin, bit By DIT after hours OF Ques
tionlng when finally Harshman started
to squeal. he told the whole story with
a bitter TRADE against French.
"I've been the goat for French long
enough" he said. Everything went one
way, into French's pockets. They had
no outlet"
Early today Clinnin started question
Ing James Horace Leet Of Cleveland and
Charles Denicke Of Chicago in connection
with their knowledge OF the operations
Of the gang. Prompted by the example
OF Harshman, they have indicated a de-
sire TO tell all they know. Close con
nsction between Leet and French was in
dicated IN a letter French dictated to the
Cleveland man a few minutes before the
Federal agents swooped down on his
room az the La Sale Hotel.
"Hel Hel I fooled them ALL" French
cackied to q stenographer. taking his
letter to Leet and also into a Government
dictsphone.
"Clinnin and his coyotes can't touch
me now.
Il believe Clinnin IS an honest man.
but / apprehend he is a better soldier
than q lawyer"
LETTER OUTLINES
PLAN FOR FRAUD.
The letter went on to outline the plan
for the Milwaukee deal whereby Leet was
60 20 TO Washington and handle that end
of fha uerotfaffOns tbrough man desiz-