The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-09-11
STOLE TOPAY
DEPOSITORS,
BANKER SAYS
President of Colorado ln-
Stitution Admits New
York Fraud.
SAVED HOME FOLKS
Paid 100000 Debts to
Prevent Ruin; Calm
at Arrest.
BIZ United Press

BIZ United Press
NEWCASTLE, Wyo.. Sept. IL
Assuming the role of a modern Rob-
in Hood, G. D. Waggoner, the Tellu-
ride (Colo) bank president, whose
Main street Shrewdness cost Wall
Streets wizards $500,000, confessed
here today he alone conceived and
executed the gigantic New York
bank swindle to repay depositors Tor
losses they sustained through clos
ing down of large mines, owned by
eastern and English interests, and
withdrawal of deposits by owners or
those properties.
Within a few hours after his ar
rest at Chambers Park, a resort
north of here, Tuesday night, Wag-
goner dropped his assumed manners
of the suave eastern f1nancier for
the simplicity of the small town
business man.
I'm glad it's all over" Waggoner
said. "I knew it was coming and
was not surprised when officers
found me.
"I suppose 7 shall go to jail for
the rest of my life. The way feel
now 1 don't know whether 1 shaH
even hire a lawyer when I get 10
Denver"
Got Nothing Personally
Waggoner declared he had reaJ-
lied nothing personally from the
transactions and his only aim was
to save the bank at Telluride an6
prevent the depositors from losing.
A man of Sd years, slight ana
unprepossessing, Waggoner, after ne
had changed back to his working
clothes" appeared tired and worried
by the ten-day hunt for him. He
told his story as rapidly as possible.
"My bank had deposits at one
time of $1.750,o00 The mining in-
dustrv went to the bad. I wanted
to get some money for the Telluride
bank that the New York banks
couldn't get back.
at was my belief it would be
better to have the banks OF New
York lose than the people OF
Telluride, who had worked all their
lives to save the money which was
in my bank.
First, sent the coded kilograms
and then went to New York ana
presented the drafts which trans
ferred the r )ney from the Chase
National bank to the credit OF the
Bank of Telluride"
Tells of Swindle
He described the swindle which
amazed Wall Street The kilograms,
which Waggoner said he wrote and
filed himself, written in bankers
code, were sent from Denver to New
York banks asking credits for ire
mendous amounts. On Aug. 81, Wag~
goner appeared in New York, 1den~
tilted himself, and the New York
banks, accepting the kilograms from
the Denver banks as authentlcs
honored them and Waggoner COLI
lected $49000O in certified drafts.
AS he dined alone Tuesday night
two officers entered and he was a
prisoner.
The officers were ready for any
emergency that might be expected
from desperate westerner, cool and
calculating enough to take half q
million dollars away from f1nanciers.
But they found mild mannereds
smiling man who yielded to arresa
and said:
"Sit down and eat with me-"
Paid Banks Debts
Waggoner paid $260,000 debts OF
his bank with the bogus credit willis
in New York The Central Ham
over bank released collateral Of this
amount and mailed it to the Tellu-
ride bank. When the sWindle scheme
was revealed, a scramble was
started Immediately for these
"spoils."
The federal government was en-
listed because the package Of coll
lateral was sent through the mails.
The state of Colorado wanted the
collateral because it would greatly
boost stability of the Telluride
bank. Federal postal authorities
ordered the package to be delivered
to the Colorado town after aid of
Colorados senators, Waterman and
Phipps had been enlisted.
State Bank Commissioner Grant
Mcpherson said he would endeavor
to save the funds for the Tellu-
ride bank while the New York
banks, it is indicated, will endeavor
to recover losses through the courts.