The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1926-12-31
EBON Y. PHIPPS IS
UNDER ARREST ON
Federal CHARGES
Indicted On Three COunts-BOnd
Fixed at $6,OOO-Says Will
Plead Guilty

CAarg.l ~its wrOngfully selling
gev1TcmSly ~rc. making false
pzyss ~ -e- .-.strss, and forging
gOvsasrssE.E f,se~iIs, - 3 Y. Phipps,
oversees Fs 4 War eets q
former captain OF Cr-rpan, . lSS
Infantry, was arrested here MS9slas
by ]. B. Platt, a deputy Uretee
States marshal, and taken to BEEte
the following day. His bond vas
fixed at $4,000. Before leaving BOze-
man in custody of the officer, Phipps
is said to have announced an intention
to enter a plea of guilty in federal
court, which is now in session at
Butte. Frank H. Gray Of this city
is his attorney.
The indictments against Phipps
were returned last week by a fed
eral grand jury in Great Falls and
were kept secret until TIE accused
man was taken into custody. Phipps
returned to Bozeman from the coas:,
where he had been employed, only a
few weeks ago. Previously he had
spent some time in Livingston.
Phipps is wildly known in National
/ Guard circles in this state. He
served overseas during the World war
as private in the Montana regiment,
and after the reorganization Of the
163rd Infantry and the establishment
of a company in BOzeman he was
elected as it's captain. In that ca
pacity he had charge Of government
property valued at approximately
$4,000. He was captain of the local
A company for two years, and at one
0 time was a member Of the Bozeman
$ police force.
Had Unusual Opportunities
To fit him for National Guard ser
Y vice, the government had given
e Phipps unusual opportunities for
O training. He was for some time with
c the United States army school at
Fort Benning, Ca, and later at Camp
+ Perry, Ohio, receiving instruction in
target practice. While at these
. training schools he received the reg
ular pay Of g. captain.
Phipps first got into trouble about
u a year. ago, when he was arrested on
= state warrant charging him with
Z having unlawfully sold a quantity d
/ army supplies and converted the pro-
ceeds to his own use. More thar
g 5000 worth of these supplies were re.
II covered from the Army and Navy
store at II East Main street, and lat
l. er goods valued at $500 were fOunC
le in Phipps' room. He was permitted
Ia to plead guilty to a charge Of petit
larceny and was given a fine and
"a jail sentence, which later was sus
= pended. He was deprived Of his com
9 mission as captain of Company C
70 and debarred from holding any Othel
u position with the government.
= More Serious Charges
% Later it was alleged that Phipp.
ar had falsified the company payroll
and investigation disclosed, it is said
1S fictitious names for which he ap
M parently had received checks whicI
he cashed after forging endorse
ments. The matter was turned owe
to government secret agents, an'
since that time Phipps had been un
der surveillance.
At the time Of his arrest a yea
ago Phipps, it is reported, bOaste,
that he would not be punished TO
his delinquencies beyond being re
lieved Of his command here. Thi
alleged attitude has given rise t.
rumors that rather sensational de
3 velopments might be expected. Up {
q the present, however, nothing to sub
stantiate these reports has bee
bronght to light.