Indianapolis Times, Indianapolis, Marion County, 11 March 1952 — Page 3
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TUESDAY, MAR. 11, 1952
Records Sc
| Evans Matthew Rust,
Dr. Barbara Morehead
Report Missing
Teacher Found MINNEAPOLIS, Mar. 11 (UP)
in a copyrighted story last night,
ae
¢ f
THE INDIANAPOLIS TIMES
a
Bank examiners today occupied the desk marked “Mr.
Rust” at the People’s State
‘to-back up yesterday's tale of 14 years of fraud.
i To cover their own bad
jand his department assistant .. 'floated $75,000 in fake loans, they ¢
{#81d FBI officials yesterday.
| The bank is losses insured.
1320 N. Delaware St., vice president of the People’s State Bank, 'and James Edward Walpole, 27, lot 959 High St., Rust's former asisistant in the small loan departiment, said they falsified records {to cover uncollected loans they ‘had made for the bank.
They were arraigned before U. 8. Commissioner Lawrence A. {Turner Jr. late yesterday for vio[lation of the Federal Reserve Act. |Bond was set at $8000 for Rust {and $4000 for Walpole. : i Neither has met bond. They {are held in the Marion County {Jail. ; ! Told Examiners
George E. King, head of the
{Indianapolis FBI office, said the, men admitted their “cover-up” to| —Twin Cities radio station WTCN, Federal Deposit Insurance Com- modest apartment. Walpole lives
imission examiners making a
sald It had located Dr. Barbara routine bank check.
Morehead, 39-year-old professor of English, missing from South
Dakota State College since last!in 1936 and was made vice presi-|
Dee. 8. WTCN said the brilliant pro-
since 1938, He joined the bank
(dent this January.
He tcld the federal agent he| “friends” who imposed on him
anned After T
bonded and all’
42, of }
iF
—————————————————;
‘PAGE 3°
Bank, thumbing the woris| Ex< Senator
wo
usgment. » bank eeentve Coylled Agent
For Reds
| DETROIT, Mar. 11 (UP)—A| {former state senator and “CIO lorganizer was charged yesterday . |with being a propaganda “errand {boy” for the Communist govern-| X (ment of Poland. ! NEY | Rep.. Francis E. Walter (D. James Walpole /Penn.), a member of the House
‘as a complete surprise to all em- Un-American Activities Commitployees of the bank. tee holding its second week of .. hearings here, said Stanley No- | Felix T. McWhirter, also vice Fi |president at the bank, and former Wak was’ paid to speak before
brother-in-law of Rust, said there STOUPS representing various Polish
‘never had been any “big shot” consulates around the nation.
tendencies on the part of either Nowak admitted having had lof the accused men. _|contact with “various” Polish em-
Rust had been married to the Dassy and consulate officials, but
| » idenied that he was an agent for ! hter of the bank's president, Jang M. McWhirter, oh now is any foreign government. He re-
Evans Rust
wo Admit Faking Loans H
&
(UP)—Edward G. Robinson Jr.,| 19, son of the film star, was arraigned yesterday on a charge of writing a worthless check and was granted a reduction in bail {from $10,000 to $1000. { 1 The young son of the cigar-| smoking actor appeared in Justice Court here with his attorney, Rexford Eagen, who asked for the reduction in bail. | Young Robinson last month was ordered out of his home! by his famous father but follow-| {Ing his arrest the elder Robinson]
father and son. The worthless check charge
" STRAUSS SAYS: TRADITION WITH
ere
Young Robinson's Bail Reduced =:
SANTA ANA, Cal, ‘Mar. 11(grew out-of young Robinson's ac-
tion in halting payment for $139" on a ‘pair of tires he purchased:® from a garage owner in nearby, Fullerton. The youth said he ° stopped payment because he was overcharged and the tires were. the wrong size for his car. Justice of the Peace Howard Cameron ordered Robinson to appear Mar, 20 for preliminary hearing.
——————————————
‘Run’ on Nylons = NEW YORK, Mar. 11 (UP) Women shoppers and office work= ers in the midtown area reported
posted bail and that act was fol-|yegterday a sudden epidemic of lowed by a reconciliation hetween!rung in their nylon hose. Several
attributed the mass stocking ruin to atmospheric conditions.
iE -
A TOUCH OF TOMORROW,
vacationing in Arizona.
in an unpretentious duplex.
The investigation has not un-'¢ome from speaking before “peace Mr. King said Rust admitted covered any evidence the men groups,” said he was paid from |doctoring the books for $60,000 personally gained from their con- §25 to $50 a lecture and made
fessed fraud.
Walpole claimed the
fessor, who mysteriously disap-floated the bogus loan applica-/for loans they couldn't repay.
peared from her apartment at Brookings, S.D., was located in Rock Hill; S.C. where she was reported staying with friends. The radio station quoted Dr Morehead as saying she left South
was “in a rut” there. ‘Surprised’ at Search
Dr. - Morehead, according to WTCN, worked as a typist in San Francisco for three months before going to Rock Hill.
“surprise” that she had been’ the object of a nation-wide search, The only real clue to her disappearance was the discovery of her car at Lake Benton, Minn.
tions to conceal {loaps, and claimed his {motive was to tation.
Walpole’s statement was virtu-|
ally the same. He had
uncollectable|
They both had used the same) only system for beating the bank; they protect his repu-|said, although they had worked! : |independently of each other. LITTLE LIZ When either of the men was > forged faced with an uncollected loan, Dakota State because she felt she 15 00) worth of the phony loans he would make out papers for a since 1948, the FBI said. Walpole bogus loan on the bank to repay
had been with the bank from the original, they told officials.
(March, 1947, until September,
(1951, when he quit to operate his!
The station said she expressed Plussed that Rust had been able to make the phony loans, ‘afraid of the other.
own insurance agency. Officials at the bank were non-
to conceal his confessed juggling {of accounts from the bank exlaminers for 14 years.
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They said they became aware, last! spring after Walpole had been! away on vacation, then continued each|
of each other's cover-ups
They finally realized
'to authorities, the FBI said.
Rust has been living alone in a or ever has been a Communist.
main | icause for his wrong-doing was|
they | |couldn’t continue their game and] | The examinations are never decided to reveal their scheming
fused on grounds of self-incrim-|ination to say whether he is now
The former Michigan State Senator, who now derives his in-
|“a good many of them’ last year.
Committee Counsél Frank! {Tavenner said that Nowak spoke! (at a meeting in Pittsburgh last {April and advocated withdrawal
{of American troops from Korea.
Girls and billiard bolls kiss each other with about the same amount | | of feeling. QNIA
%
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+ 1
THEY'RE FUR KEFAUVER—Mrs. Dorothy Gostovich adjusts |! a coonskin cap, presidential campaign symbol of crime buster | Sen. Estes Kefauver, on the head of Mrs. Betty Oaks. Occasion | was a Kefauver-for-President rally last night in the Edwin Paul
residence, 1922 Moreland Ave.
City’s Insurance Cost To Almost Double
The city will worth -of insurance business in the next several days to provide coverage for all of its vehicles. Following the recommendations
{of the Mayor's advisory commit-| A gasurance Corp., Ltd., submitted
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award $32,000 tee on insurance, the business is
expected to go to a firm repre!sented by one of the members of the advisory committee.
| General Accident, Fire & Life
{a low bid of $32,261.54 for liability insurance on 800 city-owned cars and trucks. The firm was represented hy Barton, Curle and McLaren. Edward E. McLaren, of that firm, is a member of the advisory committee, General Accident is a Scottish company with headquarters. in Perth, Scotland. '
Nearly Double 1951 Cost
The premium for the insurance is nearly double that paid last year when all vehicles were covered for a fee of $18,548.
Highest previous premium paid in the last four years was $23,403 in 1949. | Kevin D. Brosnan, committee| chairman, said the increased preimium reflects the poor risk involved with city-owned vehicles. He said in three of the last four years the insurance companies have lost money on Indianapolis city business.
Mr. McLaren defending he
action in bidding while at the same time serving on the committee. He said he bid in order to induce other Insurance comgi to seek the business.
McGouan and Brosnan, an insurance brokeroge firm of which {the committee chairman is a {member, also .submitted a bid. He |gave the same reason for enterling a hid while serving on the committee. | Mayor Clark sald the commfit-| itee’'s function primarily was policy making and any influence {they had on the awarding of the, contract would be minor.
Changes Recommended | He the made major recommenda{tions for changes in the city’s in-| {surance set up.
{ sald committee had
two
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