BANK FAILURE

Southland Times, Issue 22215, 6 January 1934, Page 5

BANK FAILURE

THE BAYONNE FRAUDS

RUSSIAN FINANCIER FLEES

SMALL INVESTORS LOSE

(United Press Assn.—Telegraph Copyright.) London, January 4. A message from Paris states that the Russian financier Serge Stavisky, who is wanted in connection with the Bayonne frauds, is believed to have fled to Greece where he will fight against his extradition. Stavisky in 1926 served two years’ detention for cheque frauds, but then changed his name to Serge Alexander. Thus he apparently had a clean record when he went'to the Stresa conference and there obtained letters of recommendation enabling him to go to the Bank of International Settlements at Basle and secure a guarantee for £1,280,000 for Hungarian bonds. He extended lavish hospitality to prominent Government officials.

Following the suggestion that powerful interests shielded Stavisky, the Government is taking vigorous measures to secure his arrest. President Lebrun has ordered an extension of the search abroad. The French Prime Minister, M. Chautemps, has issued a personal declaration that the protectors of Stavisky be unveiled, however highly placed It is stated that the frauds total £6,000,000. The main purpose of Hoisting worthless bonds on to insurance companies was to raise funds for huge land speculation in Central Europe. A message from Bayonne states that a crowd attempted to lynch Tissier, the director of the bank, who has also been arrested in connection with the Stavisky case, when he was being brought from prison to the Municipal Bank offices. Te.i charges have been filed against Stavisky and they involve £1,500,000. His associate, a Parisian music hall director, has disappeared, leaving many workless Many small investors fear the loss of their life’s savings. DEPUTIES IMPLICATED SEEN WITH STAVISKY. (United Press Assn.—Telegraph Copyright.) (Rec. 7.50 p.m.) London, January 5. The Paris correspondent of the Daily Mail says that a number of influential deputies are implicated in the Bayonne affair. They were seen in association with Stavisky. M. Pachot, the ex-police superintendent, who arrested Stavisky in 1926, interviewed, declared that he was astounded at the ease with which Stavisky secured his release. He had powerful protectors. “I do not think he will ever be arrested,” sdid M. Pachot.