The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-10-20
GOVERNMENT
SETS.NET FOR
SUSPECTS
Twenty-Six Minneapolis Resi-
dents Indicted in Bond
Theft Cases
S5oC,Ooo.0O WORTH SOLD
Newspaper Men and Statesmen
Among Those Charged by
Federal Agents
$5oc,ooo.oo WORTH SOLD


Minneapolis, Oct, DISCRIMINATING
Investigations which began more
than year ago, indictments against
twenty-six Twin City persons were
returned by the October federal
grand jury, all charging conspiracy
in concealing and disposing Of bonds
stolen from the United States mails
in the sensational New York and Chit.
cago s2,50O,O00 robberies early in
1921, it became known today when
first arraignment took place before
Federal Judge Page Morris.
The startling turn in the long in
vestigation of "hot bonds" operations
in the Twin Cities came out of an
extra session of the grand jury, the
deliberations of which were closely
guarded by the federal court and its
attaches. @s~
In addition to the bond theft in
dictments, returned secretly by the
p federal grand jury late yesterday,
three other persons have been indict-
e. They are: H. E. Sorlien, Mime
apolis, former banker, who was first
arrested in the Investigations early
in the spring and Edwin J. Ritter
and Clarence Cochran, both Of St..
Paul, charged with concealing the
bonds.
Half Million Stolen.
More than $500,000 of the bonds
stolen in daring nN,fl thefts had been
Aoated in the Twin Cities, officials
said. "
Many of the stolen securities,
which includes industrial, liberty and
municipal bonds, have been recov-
cred. The latest recovery was $685.
900 in bonds reported to have been
held by an innocent investigator on
deposit at Minneapolis bank.
The evidence in. the stolen bond
cases was presented to thes grand
jury after the government had
brought into Minneapolis its pick of
federal agents, mon from the Offices
at New York, Chicago and San Fran
cisco, to work with the regular at,
taches of the postofice department.
Expect Clean-Up. .
This staff of men, who spread out
over the Twin Cities and into the
surrounding district, obtained infor-
nation early, they are reported to
have said, which was sufficient to
warrant indictments but their OBJ
ject was to close in on the men high
er up. In this, they are said today
to have been only partly successful.
They are reported to be convinced
that when they complete the arraign-
ments, they will have at the bar ct
justice not only the men who actual
J " disposed of the bonds but the men
who brought them to the Twin Cities
and directed their disposal.
Two Out on Bond.
Stanley Mccormick, former vice
president of Stevens and company,
bankrupt bond house of Minneapolis,
and his wife, were arrested by dep
uty United States marshals and ar
raigned febore ederal Judge Page
Morris. Mccormick was held in $1O,-
600 bonds, while his wife was held
! in $1,000 bail. ~ ....~
i A third arraignment took place
. when Arba Perry, former head OF
! bond house in Minneapolis, was
! brought before Judge Morris. He
! pleaded not guilty and his bond was
] fixed at $4,000. ........,
i Additional arrests will be made as
! fast as warrants can be served, La
! Fayette French, United States dis.
i trict attorney, said, adding that dep
uties were sent to all parts Of the
l city today to serve the warrants and
head off what is said to be a frantic
efforts of persons named in the in
/ Edctments to escape. ....
D One woman, it was said, is among
\ the per!;ons named in the indict-
nments, which charge Conspiracy in
Eviolation of the penal CODE" The
Il first persons arrested were Mr.. and
HMrs. Stanley Mccormick. He was
i vice president and treasurer of the
defunct Stevens company, bond
Il house and is on trial on a charge of
embezzlement.
Twenty-six Minneapolis residents,
including bankers. bond statesmen
\ and three or four newspapre men
have been indicted by the federal
grand jury, charge with implication
/ in nation wide bond thefts, LaFay-
ette French, United States district
attorney, announced today.
The indictments were voted late
I yesterday by a special grand jury,
and service of warrants started to-
/ day. 1t is charged nearly S5OO,O0O
in stolen bonds were disposed Of in
Minneapolis. The bonds are alleged
to have been stolen in the $4,000, 900
mail robbery in New York, October
t24, 1921, and the $1,5o0,oO0 theft in
\ Chicago, January 18, 1921.