The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1924-04-04

of Orders
is Charged
Warrants Issued for Represen-
tatives of New York Ex-
change Company Which
Failed for $l0,000,0 900
Firm Had Branches Here

Z. W. Wagner 4 Co., prior to its
failure, maintained two branches in
Omaha, one in the Omaha Grain Ex-
Change building and the other in the
Hotel FontenelIe.
Although the company did an eS-
tensiye business here, no one in the
city suffered an appreciable loss
through the crash.
New York, April 3.-Detectives
left for Chicago tonight with bench
warrants, in search of four men
against whom a grand jury today
returned 80 indictments for bucketins
orders of the New York stock ex.
change firm OF L. W. Wagner Ce.
which closed its offices in Al cities
in December, 1921. and failed for
SO. .000, 900.
The bench warrants named Enf'
W. Wagner, directing head OF tbs
firm: Frank w. Donaldson. manager
of its main office at Chicago: Chariss
y. Johnson. mana ger of its New fcrs
branches. and Ernest Tiettens, the
concerns chief financial adviser.
Members OF the district attorneys
staff have gone to Albany TO prepare
extradition papers In expectation thai
the quartet viii fight removal TO Ne~
York for trial.
Operates i'm Many Cites.
z. ". Wagner & Co.. wa-3 one o,
the most active brokerage firms IL
America. II had membership IN the
New York stock exchange. the New
York cotton exchange and the Chi
cago board Of trade.
With a main office in Chicago and
two branches in New York. IT operat-
ed in SO other big cities. rs private
wire system was noted. TWO years
before the house failed it distributed
among its employees 100000 In Christ
mas bonuses
The indictments charge that heads
OF the firm swindled it's customers
| by trading against them through
system Of le house accounts"
Colossal sums were alleged TO have
passed through these accounts. In.
vestigators for the district and fed
eral attorney were reported to have
told the grand jury that in two years
of delying through as many OF the
firms records as they could IND,
they were unable even TO estimate
the extent OF it. transactions One
house account alone was short
s2o, ,ooo.0o at one time. they testified.
Records Missing.
Authorities declared before General
Sessions Judge Mcintyre. in whose
court the grand jury presented the
indictments, that records most vaiu-
able TO the prosecution were missing.
Detectives, who went TO Chicago 70
investigate reports that some OF the
firms ledgers had been destroyed.
returned saying the records had been
sold for junk and transformed into
paper pulp.
There were so compiainants against
heads Of the bankrupt brokerage
eompany-men and women in al
walks OF life.
The Armours OF Chicago and
Charles Chaplin were said 10 have
been customers Of the hankrupts.
Morris Friedburg. Detroit jeweler.
claimed TO have been swindled of
s4oo. 600 in a deal for wiilys Overland
stock. William III. Rohlever charged
he was defrsuded OF thousands OF
dollars in a Famous Players -Lssky
corporation stock transactions.
Order Bucketed. Claim.
Thomas X. Morris OF Syracuse sc
cused the Wagner concern of bucket
ing his order for Baldwin Loconlo-
tive shares. ]. !. O.Brien Of this
city said he had been similarly oe
frnuded in the purchase Of 1,see
shares of United States Steel.
Sixteen months after the failure
John S. Sheppard. receiver for the
hankrapts. submitted plan for set
Ting with creditors for so per cent
Of their claims in cash and so per
cent in notes OF a corporation TO be
organized to realize on show" assets
the firm was believed TO possess.