The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-30

Oouli eict IofsIhe4 purchase of the same
chris Johnson an Alta Vista mer-
chant, bought two tracts of irrigated
land from the MounDay company. For
eacn tract he paid $500 and in addition
TO MS irrigated land states that he was
TO receive title to ten acres of unirri-
sdled land, two town lots and some
hiies OF stock in a proposed oil, gas
ana mining company. After johnson
hao paid his $500 for the land. he was
urseu 10 buy additional land when he
was maiied copy of bulletin No. 3,
sent from Topeka by L1ounDay under
cate OF July II, this year.
My understanding when 1 went
INTO TINS project says Johnson in his
dn1daV1t, was that 1 was dealing with
Dig money making, going concern,
engaged at that time in manufactur-
ing beet sugar, that the land which I
contracted to purchase was first class
ana tnat there was plenty of water
d diiapIe 10 1rrigate the same and that
tne ute to the same was perfect.
nave invested. all told. four hundred
dollars in this scheme
Letters Are Pouring In.
Many other affidavits are being Sc
cured II IS stated, and with the arrest
OF MounDay and his wife by the gov
eminent on charge of fraudulent use
Oh the mails. letters are being received
from scores of investors, relating their
experiences with MounDay'S sugar
company and its promoters.
In the district court today Judge A.
w. Dana refused to hear the argu-
mentS of counsel in the injunction suit
of MounDay against the state banking
department and attorney generals Of
nee to prevent interference in the af-
ta1rs OF the sugar company. This
question goes to the constitutionaiity
or the blue sky law and Judge Dana
declared that the supreme court would
in all probability be compelled to pass
on this question in the custer suit
brought by the state. Two hearings
on the same ISSUE he said We're UNI
called for.
Both the state and attorneys for
MounDay urged a hearing today in
the district court. When the court re-
FUSED to take up the case in advance
OF the action of the supreme court on
the custer suit, there was a clash be-
tween the attorneys regarding the
courts order affecting the action of
the state officials in Investigating the
M ounDay corporations. In his final
instructions to the attorneys. the court
stated that no order which he had is
sued should be construed as blocking
the action of the attorney generals Of
flee in the enforcement of state laws
and that the order could not be held
as bar against the state attorneys in
their seeking evidence for the prosecu-
ton of the case in the supreme court,
seeking a receivership and order of
custer against the sugar company.
Attorney General Can Go Ahead.
"The attorney general can go ahead
with his investigation and not inter-
fere with the, cempany's business and
will not be violating any order"
Judge Dana told the half dozen law
yers who appeared in court today for
the trial of the case
Judge Dana then urged that the
lawyer stipulate to have a review of
the constitutional provision of the blue
sky law in the hearing in the supreme
court Friday in event there was fear
that the court might not take up this
phase of the case.
But. it appears to- the court" said
Judge Dana,f s'thatT if the supreme
court Should appoint a receiver for
the company next Friday, that such
action would then clear this ques-
ton" ss.3.T r@-sf 80
A. 8. QuintoR insisted that the court
enforce an order against the bank
office denying them the
right to further investigate or inter
fere with the affairs of the sugar
No new order was issued
by the court. At noon the lawyers
in the case had not made a stipulation
regarding the review by the supreme |
court of the constitutionality of the |
state law.
The hearing before Judge Dana was
passed over until next Wednesday,