The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-08-10
ARRESTS MADE
IN KANSAS FAKE
BOND SCANDAL
Mystery Man OF Midwest
Finance and Aid Are
Held Under Bond.
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TOPEKA Kan Aug l0.-Alf NJ
Landon today promised a house
cleaning 70 the last piece Of dirty
linen in the investigation Of al
legged forgery Of Kansas municipal
and school district bonds aggregat-
ing well over a half million dollars.
The state legislative council meets
next week to consider and recon-
mended matters for consideration
Of the special session Of the legis-
lature in September
Landon said the council would be
asked TO make a thorough investi-
CATION Of The alleged forgeTies and
report 20 the legislature.
Meanwhile the state treasury was
guarded by state troopers. ordered
by Landon to take charge Of the
Office after State Treasurer Tom
Boyd admitted granting permission
10 Ronald Finney 10 take Sl50000
In bonds from the state vaults.
Spectacular Figure Held
Finney. perhaps the most specta-
cular figure in midWestern financial
circles with a wealth and variety of
ventures 20 his credit. was under
SIS 900 bond He was charged with
dealing IN forged securities.
Lee Caldwell. employed in Finney's
office. was arrested Wednesday night
on the same charge After he was
taken IN custody on order of Les
ter Goodell. Shawnee county at
torney, GOodell left the city for an
unannOunced destination.
Authorities intimated The posi-
bility Of additional arrests today.
The states most sensational finan-
cial scandal Of recent years came
10 light with the discovery that
series Of eight bond issues aggre-
eating 1929 900 had been duplicated
al least twice
Bonds Are Duplicated
Two sets. one said to be the orig
inal and genuine bonds. were found
in the state treasury. The original
bonds were i'm the school fund COM
mission. one set was taken as
surety for deposits OF three banks
now closed The third was said to
be on deposit in Chicago.
The three banks. at Emporia.
Eureka and Neosho Fails. closed on
announcement Of the alleged for
gcries. Two were controlled bv
Finney's father and the third BY
other relatives.
The state militia was ordered to
command the treasury after BOYD
admitted giving access to it 10
private citizen. and. At The outset
OF the investigation. trying to deny
the same privilege to government
officials.
Troops Guard Office
Boyd'S statement. If true indi-
Gates he either was party to per-
hitting Sl50000 of state bonds to
be taken by Finney to Chicago for
a purely personal transaction or was
a party TO sending Sl50.OO0 of forged
bonds to Chicago in the same trans
action Landon said in commenting
on the military seizure
II have ordered the admtant-
generals Office to place guards night
and day over the state treasury"
Boyd demurred. pleading for time
to get an opinion from the state
attorney general The plea was
ignored
Mystery Man of Finance
Mystery has pervaded the spec
tacular financial operations of Fin
ney in recent years. He maintained
a SumptuOus residence and office
in a hotel here Two airplanes were
at his command with quick flights
10 Chicago and other cities common.
His commodity ventures were said
to have run his profits into the
thousands. Purchase OF 10000 head
of Texas cattle. his father said.
was expected to WELD a profit of
So a head But he was listed as a
bond broker. and in that field dealt
widely