The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-24

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Company Of Springfield, ILL.,,
of $7O,000,000.
( Full confessions, prose-
cutOrs said, had been obtained
from Hayden Sanders, former
dice shaker in a Chicago loop
cafe, and treasurer of the in
Surance company, and Otto Va
Derck. the bank clerk whose fiancee,
he told them, had urged him to go
to the state attorneys Office and
make a clean breast Of it.
His story led to the arrest of
Joseph Baiata, eX-COnVict and con-
fdence man; Dave Barry, loop
saloon owner and famous long
count" referee of the last Dempsey
Tunney fight at Soldiers field, and
Abraham Karatz, attorney there.
One Bank Actually Bought
Prosecutors said one Of the In
dianapolis banks actually had been
bought and would have gone into
the possession of the gang last week
except that officers deferred until
a meeting of the hoard of directors.
They said the plans of the gang
we're to have come today to this city
and take possession of the bank.
The bank now is in possession OF a
good faith deposit of bonds extract
ed from the portfolios of the insur-
ance company and the contract of
/ purchase contained a $4,000 penalty
| if the deal was not consummated.
They said that liberal deposit al
ready had been made on another of
the banks and that the deal was in
an advanced stage.
Company Head Vanishes
Gustav Lindquist, president of the
insurance company, and former
Minnesota state insurance commits
sioner, was sought in the middle
west after he had been taken into
custody, was released on his prom
Use to appear when wanted, and dis
appeared Thursday.
Prosecutors announced that while
no money had been lost to the in
surance company policyholders and
that the company finances were IN
excellent shape, $4,000 had been
embezzled from the Amalgamated
Trust and Savings bank of Chicago,
for hich theft Baiata, Barry and
Karatz were charged.
A k1vo ~ I II
was merged last night with the Illi-
nois Bankers Life Assurance Com
pany of Monmouth. H., at con-
ference of directors of both COM
panies, the latter concern becoming
dominant. Details of the merger
we're not announced.
Both Lindquist and Sanders were
ousted from then Offices. r. w.
Turnbull, Springfield, was appointed
to succeed Lindquist as president,
and w. A. Farley was named treas
urer.
Three Of the men connected with
the gang we're here Nov. 10 on an
other financial mission, it developed
today
The men tried to interest officers
and directors Of one bank in a pro-
posal to buy the assets Of an insur-
ance company in the east.
One director, who sat in on the
conference, could not remember to-
day the name of the insurance COM
pany they proposed to buy, so
tenuous, he said, was the PROPOSE
ton
Left Bag at Bank
The men appeared at the bank
about noon on that Saturday and
one Of them carried bag which
ne said contained $4,000 worth Of
bonds.
Soon after they began to state
their proposition, the director said,
he realized they were talking in
sums Of money that would not be
legal loans for the bank to make
and it did not take long for the
matter to be dismissed.
However. the bank had closed for
the day in the meantime, and the
men asked if they could put the
bonds in a safe there. They were
given safety deposi: box and left.
The following Tuesday, the man
the director was certain was San
ders came and claimed the bag and
departed.
The director said the men de-
scribed themselves as promoters
and at no tim he said, did they
mention the n, ne Of any one he
knew
Firm Recent. 'eorganized
Sanders confess prosecutors
said, that he had be- ced in his
office in the INSURANCE any by
the gang and had CO .Cted ir-
regular acts that have b,en discoy-
cred.
The conspiracy was made possible
bv the fact that the Abraham Lin
coin company recently was reor-
ganized under a new management.
Sanders and Llndquist were APP
pointed at that time.
Sanders confessed. according to
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