New-York tribune., 1921-08-24
Arrest To-day of Cleve.
land Auto Magnate Is
Expected as. Sequel to
Chicago Bond Deal
Officers Recover
$l,602,000 Stocks
orthingtonBand Round.
Up Lands French and
Five More in Prison

CHICAGO, Aug. 2S.-Millions of dol
lars OF worthless notes, stolen bonds
fraudulent deeds OF trust and forcea
certificates Of deposit have been fIurg
on the markets Of the country. Fed
eral agents declared to-day after in
vestlgating operations of a band sun
posed to have been headed by Charles
W. French and John W. Worthington
Banks, bond houses, investment Sc.
curty brokers and wealthy business
men from coast to coast were said to
have been the victims or dupes in one
Of the most gigantic swindles ever
barred BY, Federal agents.
Six million dollars worth Of stolen
bonds, nearly $3,O00,O00 in worthless
notes and hundreds of thousands Of
dollars worth Of trust deeds and forced
certificates of deposit have been traced
by Department of Justice agents, it.
was declared.
The revelations resulted from a con-
fession accredited to Alva w. Harsh
man. supposedly former private sec
retary to French, who surrendered TO-
day
rive more Arrests
Five more men were arrested to-day.
S1,602, 900 in securities were recovered
and a warrant issued for the arrest Of
q. ". Davis, Cleveland millionaire
director Of the Winton Automobile
Company, in connection with the in
vestigation.
Rudolph E. Kohn. vice-president Of
the American Rubber Company, and
j. H. Leets. Of Cleveland, are said to
have confessed.
The arrest Of Davis was ordered
after the police had intercepted let
ter bearing his signature, addressed to
French, who was arrested here yester-
day as head of the gang. The letter
pleaded with French 10 Eestore part
Of 50 $780, 900, which, it said, French and
his associates had taken in the last
two years. The letter said that the
writer required the money to support
persons dependent upon him and threat
ened suicide unless it was returned.
Davis has been shadowed tor two
was the fina! link in the chain of evi-
dence against him and the warrant for
Ills arrest will be executed tomorrow.
Asks for S2,5oo,0oo
The letter. signed by Davis, covered
six pages and was dated August s.
It said:
Please do not take what I am writ
ing to you as whine I am not in
the habit Of crying after I have lost
If I were the only one to be consid-
cred | would not care.
"But there are others who are en-
tirely dependent on ine for ,ivcii-
hood. 1t is for that reason that I am
now forced to beg you to return az
least a little of the millioDs--to be ex-
act. $4,000, ,O0O-which you and your as
sociates have taken away from me IN
the last two years"
Harshman will be used as a govern
ment witness. He was released on
IS 600 bonds. He is expec sd to con-
vict French by his testimony. Owen
also is said to have made complete
confession, is expected to convict
Workings Revealed
The discovery Of securities to-day
came through revelations concerning
the operation Of Worthington's "Paciic
Trust Company" Of Independencc, Mo,
and French's "Guarnnty Securities
Trust Company" of Kansas City, Mo.
The Pacific Trust Company was CAPT
talzcd at $4,000. The capital stock
was purchased with a $4,000 note
signed by Davis.
The Guaranty Securities Trust Com
pany had no capitalization. 1t was q
trust agreement drawn up between
Worthington, French, Harsnman, Evans,
Charles w. Denickc, manufacturer of
steel furniture, man named Littleton,
now Dead and David H. Robin, Chi
cago lawyer. /
wero in a tin box in French's trunk.
The box contained, among other securi
ties, the following:
Dayton Financing Company. Dayton,
Ohio, 100000 worth Of notes
Il. w. Davis, notes for S500,000
Evans Motor Car Company, Akron,
Ohio, notes for $43, 900.
Midwest Auto Sales Company, Day
ton, Ohio, notes for $4,000.
II. NJ. Strong Metal Products Com
Continued on pago slx)