Evening star., 1934-05-09
MUTT AMONG FIVE
BANKERS INDICTED
County Official Also Accused
by U. S. in Cleveland
Bank Case.
BY the Associated Press.


CLEVELAND, Ohio, May 9.-Five
former Cleveland bankers and for
mer county official were indicted by
Federal grand jury today on charges
of making false financial statement
and using the mails to promote a
scheme to defraud.
The latest indictments, climaxing a
year of investigation by Department
of Justice agents. center around al
legged window dressing" statements
of condition Of the Union Trust Co.
and Guardian Trust Co., which went
into liquidation following last years
national banking holiday.
Those indicted today we're Joseph
r. Mutt, former chairman of the Board
Of the Union Trust Co. and former
treasurer Of the Republican National
Committee; Wilbur M Baldwin. for
mer Union Trust president j. Arthur
House, former Guardian president; A.
r. Fraser and Harry c. Robinson,
former Guardian vice presidents. and
Alex Bernstein, former chief deputy
county treasurer.
Bonds Basis of Change.
The indictments against Mutt and
Baldwin involve a transaction whereby
sloO0O,000 in Liberty bonds left with
j. P Morgan e. Co. for safekeeping
by the Van Sweringen Corporation
we're sold to the Union and re
sold" back to the bank a few days
later.
A county grand jury recently in
dicted O. P. van Sweringen railroad
magnate, along with Mutt and Bald
win in connection with this affair.
charging that he aided and abetted"
this transaction, which the jury
claimed was for the purpose of en-
abling the bank to show larger de-
posits and greater liquidity than 1t
actually possessed.
Waving immunity, Van Sweringen
testified before the Federal jury in
its investigation of the same transac-
ton, and no indictment was returned
against him.
The indictments against House,
Fraser. Robinson and Bernstein con-
Germ an alleged S2,000,000 window
dressing" of a statement Of condition
of the Guardian Bank made Deem
ber 81, 1881.
Checks Are Recalled.
1t is charged that on this date,
Bernstein gave Deputy Charles Car
ner an envelope containing four
checks for S500000 on a county de-
posit in the National City Bank. and
deposit slip for S2000,000 at the
Guardian.
Garner is alleged to have given the
envelope to Fraser. The checks were
not cleared, and were returned to
Bernstein the next day. At the time,
the county's deposit in the National
City Bank was only $661 900.
The indictments charge that in the
Guardians statement of condition as
of December 81, 1881, there was re-
fected a s2,000,000 increase in de-
posts and also in the banks item OF
cash on hand and due from other
banks. The Government alleges that
financial statements of the bank were
sent through the mails to other banks
and business firms.
Conviction on either charge carries
with it a penalty of five years in the
penitentiary and a $4,000 fine.
House. Robinson and William r.
Green. another vice president, pre-
viously were indicted by Federal
grand jury on charges of misapplica-
ton of $4,000 and Justification of
records in connection with the alleged
purchase of bank stock from an en-
ployes' pension fund.
Deposits Decline Sharply.
The Union Trust deposits had
dwindled to $l30,812,254 when the
bank was closed for liquidation. A
dividend of IS per cent has been paid
to depositors so far with the aid of
r. F. c. funds and other banks.
The Guardian Bank had deposits
of s75,545,7 ,790 when it was placed in
liquidation.
Two indictments are pending
against Bernstein in connection with
a half a million dollar shortage in
the Cuyahoga County Treasury. He
was acquitted on an indictment
charging him with being the prin-
cipal in one phase of the treasury
shortage case after trial which also
resulted in acquittal of Maurice
NsoenbLo pop,,h1ioop leader