The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-08-22
u. S. WITNESSES
They Occupy the Day in Noun
Day Trial.
Long Story of Misrepresenta.
tiOn of Lands.
ABOUT THOSE SECURITIES
No Taxable VaIue-Have They
Any Other Kind?
Mrs. MOunDay's Part in Land
Operations Established.

Leavenworth, Kan, Aug. 22.-Taking
Of testimony before United States
Commissioner Bond in the case of Don
A. MounDay and his wife, of Topeka,
charged with misuse of the mails. will
probably end tonight. Commissioners
Bond will then decide if the MounDays
are to be held to the federal grand
jury.
Leavenworth, Kan, Aug. 22.-Jamcs
Sinner was the first witness in the
preliminary hearing in the MounDay
case before United States Commission
er Lee Bond this morning. He testi-
fled that the half million dollars of
securities which the MounDays had
advertised had never been listed Tor
taxation.
Hiram c. Root of Topeka, who is
trustee for the securities, sAid that ne
had the list of securities and explained
that the value depended upon future
developments. He did not know
whether the securities are of value at
this time.
E. c. SkelIy, who lives at Pueblo.
ing a letter from the MounDays which
led him to believe they were connect
ed wit hthe sugar trust. Skelly was
agent for the MounDays in selling and
he used the information about the
sugar trust in selling land to Colorado
people.
w. w. Goodall of La Junta, Col. was
the last witness this morning. He iden-
titled letters sent to hib by Noun
Day and Mrs. MounDay in which il
was claimed that the Santa. Fe was
planning to build a line through the
land in New Mexico. What was said in
the advertisements about the half mill
lion dollars worth of securities being
worth face value he believed. He sold
a lot of land for MounDay and used his
influence to make his friends believe
that the securities were worth a full
half million dollars. He bought land
and SO did his friends The defense
made a fight against introducing the
letters but Commissioner Bond did not
object to their introduction. ..
Leavenworth. Kan. Aug. 22.-Much
sensational testimony tending to es-
tabIish fraud by Don A. MounDay and
L. d. w. MounDay in their use of the
mails in selling New Mexican land,
was offered during the second day OF
the preliminary hearing before United
States Commissioner Lee Bond. Eff
forts were made by the defense to
break down the case of the govern
ment by the grilling cross-examination
of witnesses by d. r. Hite, the de-
fendant's counsel. The day closed with
the governments long line of testi-
mony in apparent good shape.
One of the surprises for the defense
came when District Attorney Robert
son produced Photographic copies OF
letters written by Don A. MounDay to
United States Senator Thomas B.
Catron of New Mexico, who claimed
to own the land which MounDay and
his wife were offering for sale. Noun
Day at one time held an option con-
tract for the purchase of this land.
But it is contended by the government
that this contract has long since ex-
pired, that Catrons own title to the
land is poor and in serious question
and that neither MounDay nor Sena-
tor Catron owned any water rights
along the streams on the land and had
made no effort to secure these prtvi-
leges, although water was one of the
talking points in the sale of the real
estate contracts.
Testifying for the government Carl
Peterson of Topeka identified the
Photographic copies of the letters
which were written by MounDay to
the New Mexico senator. These let
ters were lengthy and MounDay ex-
pressed himself to Senator Catron in
most positive language. Under date
of March %, 1910, MounDay wrote:
Didn't Care for Water.
'I have pointed out dozen times
that 1 don't care continental whether
I have a drop of water or not"
Further in the letter MounDay in
timated that there was a prospect for
trouble with the government over the
land enterprise. The defendant fur
ther declared that Senator Catron
should produce an abstract to his land
and intimated that possibly this abb
stract was not subject to the closest
possible inspection by shrewd lawyers.
But MounDay didn't worry. He told
Catron that he knew every district
Judge in the state and was on good
terms with the district attorney. Yet
MounDay wrote:
"You know and 1 know that neither
of US have any good title to water
rights"
Still further and in letter under
date of December 4, 1910. MounDay
wrote letter to the United States
senator, in which he most positively
connected the name of his wife with
the sugar company and it's business.
Speaking of the business as handled
by Mrs. MounDay, the defendant said.
"She is just as interested in this
proposition as / am"
Then he reminded Senator Catron
that not a letter came into the office
but that it passed under the eyes of
Mrs. MounDay and she kept in con-
slant touch with the business of the
company and handled virtually all of
the correspondence.
No Water Rights to Be Had.
Backing up these letters was the
strong testimony of George Morrison,
district engineer for Las Vegas, N. M,
who told of the water rights of the
defendants in New Mexico. He was
positive that permission had already
been given for all the water which the
little river might furnish and that
rome of this water is controlled by
MounDay, Catron or their associates
Reading from the state records
Morrison testified that the Gallanias
T3ar