WHITNEY CASE

Dominion, Volume 31, Issue 142, 12 March 1938, Page 11

WHITNEY CASE

Misuse Of Trust Fund Alleged

OTHER INDICTMENTS? Efforts To Corner Stock Indicated By Telegraph.—Press Assn.—Copyright. (Received March 11, 9.45 p.m;) New York, March 11. Richard Whitney, of the Richard Whitney Company, which was suspended on the Stock Exchange, was indicted by the Grand Jury of grand larceny. ' Specific charges involved the misuse of 400,000 dollars of trust fund, established under the will of his fathre-in-law, George Sheldon. A message dated March 10 stated Whitney was placed under formal arrest. His finger-prints were takeu and he was also photographed. He was then released on bail and will appear for pleading to-morrow. It is announced that other indictments may follow, but a complete investigation has not yet been made. Rumours that Whitney’s losses may total 10,000,000 dollars were current, but could not be verified. It is indicated that Whitney’s efforts to corner the stock of Distillers, which in itself is agaihst .the law, were basically responsible for the firm’s predicament, Whitney paid as high as 45 dollars a share for some of tlie stock. While developments in connection with the Whitney bankruptcy case have persistently attracted the major attention of Wall Street, they continued to have no effect on the market to-day.