The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-25
q. S. Inspectors Act Against
Head of American Sugar Co.
Were Exciting Scenes at Noun
Day Offices
LAWYERS VS.. INSPECTORS
MOunDay and His Wife Are
Charged With Fraud.
They Had Attacked the Blue
Sky Law Provisions
And SUED J. N. DOLLEY
Government Case Makes Many
and Grave Allegations.
Claimed MOunDay Cleaned Up
Half Million.
and SUED J. N. DOLLEY
Government Case Makes Many
and Grave Allegations.
Claimed MOunDay Cleaned Up
Half Million.

A storm cloud broke over the head
of the American Sugar Manufacturing
company in Topeka today and in the
brief space of a few minutes Dan A.
MounDay and L. D. w. MounDay, his
wife, were arrested by the government
on charge of fraudulent use of the
mails, proceedings to appoint re-
ceivers and to oust the company from
the state were filed in the state su-
preme court, postoffice inspectors raid
ed the offices of the sugar company in
the Mulvane building and the ~ai1
terminated in a fight between an IN
spector, MounDay and his wife and
their attorneys. and interference OF the
part of the police after documents
regarded as valuable evidence in the
case had been taken from the building
The tornado which hit MounDay and
his associates today came suddenly and
without advance warning. Yet for
weeks the government and state Off
cials have been quietly working on the
case to put the sugar refining company
out Of business. Special government
investigators, postoff1ce inspectors and
attorneys have secured the country in
the last week Gradually, piece by
piece. they have put together the case
on which the government will rely IN
its effort 20 send MounDay and his
wife to prison for fraudulent misuse Of
the United States mails.
At the same time the government
was building up a case on which it
today brought criminal proceedings,
the attorney generals office prepared
evidence for the filing of a suit to-
day in the supreme court. That suit
seeks to secure the appointment of
receivers for the sugar company to
saVe-if Notwithstanding from the
apparently impending wreck for the
investors in the alleged fake sugar
plantations of New Mexico. The state
suit, filed under the assumption that
the MounDay company was violating
the state blue sky law, asks that the
corporation be ousted from the state
1t also seeks to tie up all properties,
moneys and investments of the cor
poration for the protection OF inno-
cent investors in the mythical land
deals.
Stirring Scenes of the Arrest.
Then came the arrest of MouuDay
and his wife in their office in room
407 Mulvane building. AS Frank
Flenniken, deputy United States
marshal. led the defendants to the fed
eral building, two inspectors raided the
offices. There were protests from \. B.
Quinton. an attorney. But Qufnton was
unceremoniously elected from the
room. An inspector left the building
ments of the sugar company. His as
sociate was just preparing to leave
when MounDay and his wife. accom-
panied by Harry ]. Bone, one of their
attorneys, returned to the building.
Aided by Quinton who had thoughf-
fully called the police, the four people
seized the postofice inspector, reglin-
ed the papers which he was carving
and for few minutes occupants on
the fourth floor of the building stood
An1r ~
there was none. MounDay Kept the
papers.
Almost at the very same minute
that John S. Dawson, attorney gen
erai, went into the supreme court
with petition in quo warranto, Dep
uty Marshal Flenniken and two post
office inspectors walked into Noun
Days office with federal warrants for
the arrest of the investment company
head and his wife. Mrs. MounDay. it !
appears, has been one of the real
workers in the scheme which is al
legged to have raised a half million
dollars through the fake sugar
schemes. MOunDay himself was nor
in the office when the officers came.
But Mrs. MounDay, who was in
formed that a criminal complaint had
been issued by the government for her |
arrest, smiled blandly and asked the
officers If they wouldn't please take
chairs and wait until her husband |
came back.
Mrs. MounDay Was Game
Then Mrs. MounDay went even
further. She politely called her hus-
hand on the telephone to urge him to |
hurry to the office-and be arrested. |
Mrs. MounDay was just as cool and |
calm as any one in the party and a |
stenographer worked away at her
typewriter just as though an invasion |
at the hands of the government was
nothing to create alarm
Presently MounDay arrived He
was told that there was a warrant
for his arrest
Cant say that I am at all glad TO |
meet you under the circumstances - |
said MounDay, who smiled
Then Attorney Quinton came into
the oItlce AS MounDay and his wife |
prepared to go to the federal bni1ding
with Flenniken, Inspector R. S. Brauer