The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-09-11
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TO new YORK BANKS
Desperate Move Was Necessary
to Protect Depositors in
Telluride Bank
EXECUTED SCHEME ALONE
Would Rather See New York
Institutions Lose Money
Than His Neighbors'
EXECUTED SCHEME ALONE

AsNW SHoSSS, "yO.s NJCPts AAs'h1
G. D. Waggoner. president Of the
Bank Of Telluride, Colo, arrested here
IN connection with the transaction BY
which he obtained $780, 600 credit |
from New York banks on unauthor-
lied telegraphic orders from six Dem
yer banks, said today he engineered
the deal in the hope OF protectine
depositors OF his bank In Telluride.
The bottom dropped out OF things
IN Telluride and desperate move
was necessary" Waggoner said.
I would rather see the New York
banks lose money than the people OF
Telluride, most of whom had worked
all their lives for the savings that
were deposited In my bank"
Waggoner declared he planned and
executed the deal by himself ana had
no confederates.
Forced Bank Closing
The Bank OF Telluride was closed
and placed in the hands or the state
banking department recently follow
ing the disclosure Of the half million
dollar transaction In New York.
Meanwhile the New York institu-
tiOnS which were victimized have
been making efforts to recover COL
lateral which Waggoner presumably
forwarded TO the Telluride bank after
obtaining the credit In New York.
Colorado banking department off,
cials on the other hand are attempt.
ing to seize the collateral and apply
It toward paying off the Telluride
depositors
Waggoner declared that the decline
OF Telluride. once a prosperous min
Ing town. had hit his bank and fhat
with failure staring him In the face
ne conceived the idea of protactinr
MS deposttors at the expense Of TIE
New York banks.
AT one time the Bank of TelI,,rid>
had deposits OF $l.75O 600. then con-
oitlons IN the town went from bad To
worse, ne said. Il wanted to get
some money and put 1t in the Tellu-
ride bank SO the banks Of New York
couldn't possibly get It back. T
would rather see the New York banks
lose money than the people Of Tel.
luride."
Arrested ut Camp
Inc banker was arrested last nirht
at tourist camp 8 miles north az
mere Wnere he had registered under
MS own name. He said he had made
no attempt to conceal his identify
and was driving his own motor ~.
sheriff Carl Howell said WagRoner
admltted the coup by which six New
York banks. after receiving faxed tele-
graphic orders from Denver, deposited
$oOO.OOO to his credit In the Chase
National bank Of New York, but re-
fused to discuss the motive behind the
transaction. He made It clear. how
ever. that he alone was responaihle
Tor the manipulations which resulted
IN complaint charging grand
larceny being filed against hun In
New York.
Waggoner declared he had ssthoueht
out the whole scheme carefully ahead
OF time." and insisted that neither
his wife nor G. w. Downtaiu. cashier
Of the Bank Of Telluride, knew any
thing about the transaction. He said
ne had been travelling in the Dakotas.
Nebraska and Wyoming. and that he
was nearly glad" he had been ar-
rested. He said he expected 70 70
to Jail for the rest Of my life" Tor his
speculattons and declared he might
not even retain an attorney" II he
were removed to Denver or New York
TO face charges Of grand larceny.
Several days after the Transaction
was discovered, authorities at Denver
and Colorado bank officials advanced
the theory that Waggoner manipu-
lated to pay off depositoes Ia his
bank. The bank was closed last week
following the discovery and tho an
nouncement that Waggoner was miss-
ing.
Investigators at Denver announced
one Of the obligations cleared ~
Waggoner's manipulations wos :
100000 loan to the Norwood Cattle
Loan company Of which Waegoner
was president, but J. 9. Anderoon.
secretary Of the company. declared
the company had not benefited . cent
by the transaction.