Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-16
TELLURIDE CASHIER
GOES TO NEW YORK
Bank Official Who Signed
Checks for Waggoner An =
sWerS Subpoena.

BY the Associated Press.
NEW YORK, September &c. D.
Waggoner, president of the Bank of
Telluride, Colo, today was indicted
by a Federal grand jury for mali
fraud in connection with the
manipulations by which he obtained
half million dollars in credit from
New York banks on fake kilograms.
BY the Associated Press.
NEW YORK, September &c. e.
Downtain, cashier of the Bank Of Tellu-
ride, Colo, arrived here today in obedi-
ence to a Federal subpoena requiring
his appearance before the grand jury
investigating the method by which c. ..
Waggoner defrauded six New York
banks out of 100000.
Downtain, as cashier of the Telluride
bank, signed the three checks which
Waggoner filled in and certified and
used in fraudulently obtaining the half
million dollars here.
Plans Six-Count Indictment.
Charles A. Tuttle, United States at
torney, said that his assistants were
drawing up an indictment charging
Waggoner with fraudulent use Of the
mails, and if the task was completed
before the grand jury adjourns for the
day it will be presented.
7 was understood that the indict-
meft would contain six counts. One re-
lating to each of the forged kilograms
purporting 70 have come from Colo
RADIO bank to its correspondent bank in
New York. and especially to mailed
confirmation of the transaction involved.
May Stay in Jail a Week.
CHEYENNE. Wyo., September 16 Up
Although he Is one step closer final
accounting forg4iis 100000 manipulation
at the expense of six New York banks,
it appeared likely today that c. D. Wag-
goner, president of the closed bank OF
Telluride, Colo, will remain in the
Laramie County jail here for perhaps q
week.
sheriff. Waggonner waS brought here
yesterday from Newcastle, Wyo., where
he was arrested Tuesday.
After a DAY of discussion between
Waggoner, his counsel and relatives,
A. D. Walton, United States attorney,
announced yesterday the next move
would be held up pending further action
Of New York authorities.
Will Await Indictment.
The attorney expected an indictment
to be returned against Waggoner by a
New: York FEDERAL grand Jury today, and
he said he would await receipt Of the
indictment and perhaps bench war
rant before holding hearing here on
the removal order already received.
Walton expected the indictment to ar
rive here by the end of this week, and
said it probably would be at least a
week from today before Waggoner could
be started for New York.
During Waggoi1er's conference with
one of his attorneys, S. D. Crump Of
Denver, it wss indicated that insanity
was to be tbs bankers defense when
he is brought &c trial. A deputy sheriff
informed the Associated Press CORE
spondent that during MS conference
with Waggoner and his wife and son,
Crulnp said he would have Waggoner
examined by an alieniSt.
Crump also refused to say whether
Waggoner would contest the order for
his removal to New York. Authorities
here, however, were of the opinion that
Waggoner would not contest the order
because that action would be futile and
would merely delay final settlement Of
the case.
The bank president presented
changed appearance when he reached
here yesterday.