The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-10-17
MUST FACE TRIAL.
MounDays Indicted by Federal
Grand Jury.
Twelve Counts for Fraudulent
Use of Mails.

Don A. MounDay and L. D. w. Noun
Day, his wife, have been indicted on
IL separate and distinct counts, each
charging fraudulent use of the mails.
True bills against the Topeka promoter
and his wife were returned by the fed
eral jury sitting in Leavenworth. The
bills are returnable in December and
the two defendants will be tried in To-
i-peka at that time.
Indictments against MounDay and his
wife this week indicate that the gov
eminent was prepared for the reverse
ruling of Judge Pollock relative to the
return of the MounDay papers seized
when postofhce inspectors raided their
Offices in Topeka. None of the infor-
mation contained in the records from
the raids was permitted to be used in
presenting the case to the federal grand
jury and the II charges against the
MounDayS were based entirely on evil
dence discovered by the government
since the raid on the offices of the
American Sugar Manufacturing & Re
filming company in July.
Bonds Are Increased.
Neither MounDay nor his wife were
in the federal court room when the in
dictments were read by the clerk. Early
in the week the two defendants had
gone to Leavenworth, but MounDay is
said to have returned to Topeka Mrs
MounDay, it is asserted is visiting in
Kansas City. Under the order of the
grand jury, the bond of MounDay will
be increased from S. 900 to $1,000. The
bond of his wife will remain at $4,000.
This is the second time that the de-
PENDANTS bonds have been raised by
court order. Following the arrest of
the defendants, Mrs. Mondays bond
was made $1,000 while that of her hus-
T-if oI fof
Commissioner Lee Bond increased the
amount of each bond to $1,000 after
hearing the evidence presented at the
preliminary in Leavenworth in Aug
uSt.
1t is probable that Hiram c. Root
and wife, who provided the present
bond, will also qualify as surety for
the defendants on the present bonds
About 40 witnesses were called by
the government in presenting the case
to the grand jury. No information Is
given as TO the testimony of these wit
nesses, as the grand jury deliberations
are behind closed doors 1t is assert
ed, however, that number OF the !
witnesses used at the hearing were in !
vestors in the MounDay sugar and
land deals -T
One of the important witnesses at !
the hearing was a son OF United States
Senator Thomas B. Caron of New |
Mexico. 1t was with Senator Catron |
that MounDay held an option con-
tract for the sale of the land disposed |
Of by the land department of the |
American Sugar Manufacturing and |
Refining company, of which corpora i
ton MounDay was general manager |
and his wife secretary-treasurer.
Penalty Is Severe
Under the federal law. the maxi I
mum penalty for conviction on each
count of a charge of fraudulent use |
Of the mails, is not to exceed five years
N the federal prison at Leavenworth- |
The minimum penalty, under the re- /
vised federal law, is one year. Thus, |
the indictment of twelve counts means /
hat the two defendants face possible
sentences of not less than II years
nor more than 60 years, should they
be convicted on all of the counts
charged in the Indictment.
The jury, however, may find for the
on any one or all of the /
counts on final trial of the case and
each count operates as a separate in
1ictment and calls for a separate find
ng by the jury. About two weeks will
probably be required to try the case
when it is called in the federal court
n Topeka in December
Cause of the Trouble.
Troubles of the MounDays began in
Tune when they attacked the Kansas
blue sky law and sought to have the
Lct declared unconstitutional. Prior
o the ming OF the suit, the hOuHDdyS,
through a number of agents. had been
Engaged in the sale of contracts for
he purchase and future deliverance of
and in New Mexico. This land was
dyertised in a manner that led invest
rs to believe that it was a veritab1e
Garden of Eden and that sugar beets
ould be raised in abundance on the
and which the investors were led to
elieve would be put under irrigation.
Following the attack of the state
lue sky law, the government sudden
Y took an interest in the case. Some
f the literature of the MounDays was
laced in the hands of postoffice in
pectors, and on July 25 the office of
he American Sugar Manufacturing .
nd Refining company in the Null
ane building. Topeka, was raided by
he government. MounDay and his
life We're arrested and postoffice in !
pectors seized a large amount of the :
correspondence and numer- ,
US records of sales and contracts. AS 7
here was no warrant for the seizure
this property, Judge Pollock recent ]
? ruled that none of the evidence Sc
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