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THREE 2 ARRESTED, FROM MINNEAPOLIS;
Grand Larceny Charged After Year's of Fund Diversions
FOUR BANKS CLOSED
MONTHS AGO INVOLVED
Two Plead Not Guilty to Charges Released on Bail, Others Held
Five men are under grand jury indictment, two from Minneapolis and other are under arrest and two others are sought on bench warrants as the result of investigation into an alleged "conspiracy to wreck group of country banks." all of which have been closed for several months. The banks, all closed state within last and federal year, officials said, have suffered diversions least $100,000. One man taken jail. other man under arrest also under indictment county, and two of the three sought face charges in other courts. The men named in charging Sheriff Carl grand derson of Wright county Henry Unschuld, 3531 Pillsbury aevnue, Minneapolis, taken the Wright county jail, arraigned and at $20,000. M. Strand, Colfax arraigned at Buffalo released under $5,000 bond. Strand trial Elk River June charge. Sivers, former president of the First Bank of Buffalo, also under an charge in federal court, arrested late Saturday M. Melberg, in Minneapolis hospital, indicted with Strand Elk River, with affairs of the Farmers State Bank of Big Lake. Willaims, believed to be at Mankato.
Bench warrants have been issued for Melberg and Williams, the Wright county grand jury week taking evidence, the result a year's investiCharged With Aiding Embezzlement Strand Unschuld charged with aiding and abetting officer bank in embezzlement. One charge fixes an amount of $15,000. the other $3,000. Warrants in the hands of the sheriff list charges grand larceny. There are understood to be severa The Wright county grand jury will renew its County Thomas Welch Monticello said last night. "There are several men involved this, and intend get the bottom Mr. Welch He aided County Attorney Will Blanchard Anoka county, named special deputy attorney general to push the investiga- the State Bank of Maple Lake, little on the Buffalo and Annandale, the spotlight of Investigation the present instance. number more them each oth. banks, officials charge, which "loaded with bad paper, Veigel, state banking says.
Hanover Bank Involved There the little interior town of with its small bank. barely from Hamel, location the banks the William H. Schafer, Minneapolis promoter went to prison in 1919 sensational trial. The banks at Maple Lake and Hanover closed this spring. Then there is the First National Bank Buffalo, closed October, shortly its Sivers, was arrest. The fourth was Farmers State Bank Big in counclosed last month had absorbed the national of the
About time number of banks closed and investigations by the state banking department, Veigel, state banking issued warning against "wildeat" banking. "Certain persons for some time have mortgages for much the covered worth,' he "and offering them to banks discount. In some they purchased the controlling interest tain banks and then loaded the banks such Charges Conspiracy to Wreck Banks He an into the there spiracy wreck that hoped get evidence to warrant charges. Examiners spent month then in amination records. There had purchased, officials said, $35,000 in bonds doubtful value. The was put banks, exchanged for ter securities. The banks were ordered closed. by examiners unhealthy conditions because "poor Early last week a grand jury met at examiners, bankers, employees, our Mr. Welch speaking for himself Mr. Blanchard. diversions from various banks, Wright county, one in Sherburne.' Grand Jury Issues Warrants The grand jury completed its session, went the sheriff. SherAnderson went Saturday to the home refused me, and threatened him handcuffs him His deputy. Elsenpeter. at same time went Strand's The raigned Judge Giddings, and trial set June Unschuld Continued on
