The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-10-27
ROUND UP IS MADE
GRAND JURY WORK
Twenty Six Are Under
Indictment
ARRESTS BEING MADE
Bankers, Statesmen and Newspa-
per Men Caught In
the Drag Net
lAssociatea press pIspnteh.l

tAssociated Press Dispntch.I
Minneapolis, J October 20..-Twen-
ty- six bankers, bond statesmen and
three or four newspaper men. have
been indicted by the federal grand
jury, charged with implication IN
naticn wide bond thefts, Lafayette
French, United States district at.
torney, announced today.
The indictments were voted late
yesterday BY special grand jury,
and service OF warrants started to-
day. 1t is charged nearly $4,000 in
stolen bonds were disposed OF in
Minneapolis. The bonds are alleged
to have been stolen in the $500, 900
mail robbery in New York, October
"a; 1921, and the s1500,000 theft in
Chicago, January IS 1921.
One woman, it was said is among
the persons named in the indict-
ments, which charge conspiracy il
violation Of the penal CODE" The
first persons arrested were Mr., and
Mrs. Stanley Mccormick. He was
vice president and treasurer of the
defunct Stevens and company, a
bond house and is on trial on a
charge of embezzlement.
Postal Inspectors revealed that
fully $1,000,O00 worth of bonds in
cluded in the loot were circulated in
Minneapolis aud st. Paul. Many
persons dealing in the securities,
the inspectors said, were innocent
OF the fact that the bonds had been
stolen but a few. it is alleged, not
only know they were stolen but
Were eonfederates of gang leaders
in New York and Chicago.
Special Session Grand Jury.
The startling turn in the Long in
vestigation OF .'hot bonds" operations
in the twin cities came out of an ex-
ira session of the grand jury, the
deliberations of which were closely
guarded by the fedora, coui. and its
attaches.
In addition to the bond theft in
dictments, returned secretly by the
federal grand jury late yesterday,
three other persons have been in
dictd.-. They are: H. E. Sorlien, Min
neapoiis, former b.nker, 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.
Mere than 100000 fof the bonds
stolen in daring mail thefts had been
floated in the twin cities, officials
said.
Many of the stolen securities,
which includes Industrial, liberty
and municipal bonds, have been re-
covered. The latest recovery was
$4,000 in bonds reported to have
been held by an innocent Investor on
deposit at a Minneapolis bank.
Picked Federal Agents at Work. ,
The evidence in the stolen bond
cases was presented to the grand
Jury after the government had
brought into Minneapolis its pick of
federal agents, men from the offices
at New York, Chicago and San Fran
cisco, to work with the regular at
taches of the postoffice departm
This staff of men, who spread out
over the twin cities and into the
surrounding district, obtained in
formation early, they are reported to
have said, which was sufficient to
warrant indictments but their object
was to close in on the men higher
up. In this. they are said today to
have been only partly successful
They are reported to be convinced
that when they complete the ar
raignments, they will have at the bar
of justice not only the men who ac-
tually disposed of the bonds but the
men who brought them to the twin
cities and directed their disposal
Mccormick Bnder Bonds.
Stanley Mccormick, former vice
president of Stevens and company.
bankrupt bond house of Minneapolis,
and his wife, were arrested by deputy
United States marshafs and arraign-
ed before Federal Judge Page Nor
ris. Mccormick was held in $4,000
bond, while his wife was held in S.
600 bail. "
when Arba Perry, former head of a
brought before Judge Morris. He
pleaded not guilty and his bond was
liked at $4,000. ss..
Additional arrests will be made as
fast as warrants can be served, La
fayette French, United States dist
riot attorney, said, adding that de-
puties were sent 10 all parts OF the
ejtyl today to serve the Warrants and
head off what is said to be a frantic
effort of persons named in the in
dictments to escape.
According to the district attorney,
the work of the secret service men
and postal inspectors in unearthing
evidence in Minneapolis leading to
the indictments was marvellous"
.They have worked for five
months, he, said "The adding of
link upon link, to the chain which re-
vealed the sources of these bonds af-
ter they had been stolen in New York
and Chicago mail robberies Is high
ly creditable performances"