Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-19
PARTNER is SUMMONED.
Waxroner's Associate Leaves Denver for
Grand Jury Probe.

WagEoneF's Associate Leaves Denver Tor
Grand Jury Probe.
DENVER, Colo, September 1s (P.-J
c. Anderson, secretary Of the Norwood
Cattle Loan Co., has been subpoenaed
to appear before a Federal grand jury
in New York to testify regarding lis
connection with the affairs Of the
Bank of Telluride, Colo, whose presi-
dent, c. D. Waggoner, is alleged to have
fraudulently obtained 100000 from
six banks of the Metropolis.
Waggoner also is president OF the
loan company, which, Federal officials
said, was closely associated with the
Telluride bank.
Anderson, who planned 10 leave for
New York today, is director Of the
. Telluride bank and -ong-time friend
of Waggoner. He will be questioned,
Federal officials said. regarding $1,000
| in cash and S25, 900 in securities which
| came into his possession as result Of
loan paid at the Continental Bank Of
Salt Lake City by Waggoner.
Told Of Deposit.
When the financial puzzle was being
/ unraveled here after the closing of the
Telluride bank Anderson told State
Bank officials he had been informed by
Waggoner the $4,000 had been depos-
tied to his credit in the Salt Lake City
bank. The funds came from the First
National Bank of Pueblo. Colo, where
Waggoner had sent a draft for s225, coo
to be deposited to the credit of the
Bank Of Telluride.
Anderson said he had no previous
account at the Salt Lake City Bank,
but. acting on instructions from the
banker, ordered that bank to pay a
$4,000 loan of Waggoner's which it
held. This done. he requested the
securities, collateral to the loan, sent
to him here along with the S., 1000 cash.
Anderson is now holding the securities
and cash pending the outcome of the
case. The $4,000 cash, he said, is for
payment of note Of Waggoner's which
he now holds.
Status Not Known.
status of the loan company in connec-
ton with Waggoner's 100000 deal
never has been determined.
The company was first drawn into
the case when Waggoner paid 500, 900
note Of the company at the Central
Hanover Bank Of New York with funds
from $270,00O draft certified by the
Chase National Bank.
Anderson declared he knew nothing
of a 100000 obligation of the company,
but he was aware of q $50, 900 note. He
said he had signed a $4,000 note for
the company some weeks ago but
understood it to be q renewal of the
original and not q new one.
Leaves With Collateral.
John Jepson, deputy Colorado State
bank commissioner, left here yesterday
for New York to testify before the
grand jury. He was reported to be
carrying with him all the collateral
which Waggoner withdrew from New
York banks. He was also reported to
be accompanied by Charles j. Moyni-
han, counsel for Grant McFerson, State
bank examiner, In the liquidation of the
Telluride Bank, although this could not
be confirmed.
When Jepson reaches New York to-
morrow possession Of the collateral is
expected to become the center of q
spectacular legal battle. Jepson has in
dicated that he is prepared to fight to
the last ditch to retain possession Of
the securities for the benefit of credi-
tors Of the Bank of Telluride, which is
in the hands Of the State bank COM
missioner.
Included among the documents Jep-
son is reported to be carrying are sup
posed to be the securities released by
the Central Hanover Bank and ship
ped to the Bank of Telluride after
waggoner paid obligations totaltrg
$2l5,00Q