Salt Lake Telegram | 1933-02-18 | Page 2 | Ex-Treasurer Jailed in $500,000 Steal

WiFmmMi mm m . mumm heal i FORMER BANK I HEAD ACCUSED ! AS ACCOMPLICE ! I Two Milwaukee Men Held, j Awaiting Arraignment j on Charge I IBr AmmIiIW rmol MILWAUKEE. W.I., Fab. IS A man who arrved ss city treasurer ol Milwaukea for If years and another who waa haad of tha dafunct Liberty Stat bank war in Jail today awaiting await-ing arraignment on indictment charging embeulement of 1500,000 of city fundi. John I. Drew, city treasurer from 1914 to 133, waa accused by the grand Jury returning the indictment! with missppropristing tha money and 1. J. Rosenberg, the, former bank president, presi-dent, with aiding him through his banking connections. 1 Deputy aherlffs arrested Drew late (last night at St. Joseph's hospital, where he had been a patient for -several days. He has been ill for I several months. Rosenberg was aril ar-il rested at his home. Both were de-j de-j nled release on bail, pending arraign-I arraign-I ment at the regular session of munici-1 munici-1 pal court today. The indictments ehareed that the psir "falsely, fraudulently and feloniously feloni-ously padded the invoices when bonds were purchased so as to Increase the apparent costs thereof to the city." Alleged padding.of invoices covered a period of five yeera, from 1927 through 1831, the indictments said. Bond transactions through which the slleged embezzlement was effected totaled to-taled 138,000,000, the grand Jury report re-port said. Investigation Into the affairs of the two men was first started several years ago by the Wisconsin state income in-come tax bureau, which has assessed sn extra tax against Rosenberg, who appealed the case and lost An additional addi-tional investigation was undertaken recently by state authorities in connection con-nection with the closing of the Liberty State bank. i District Attorney William A. Zabel called the grand Jury together a week )ago. to examine the evidence cbilect-led cbilect-led by the various investigators. The indictments resulted from their study i of the cafle. Special Prosecutor Edward C. Yock- ey said today that he would ask that i each of the accused be required to post $250,000 bond for his release.