The Topeka state journal., 1914-01-20
Don A. MOunDay and His Wife
Are Convicted
On Nine Counts of the 1ndtct-
ments Against Them.
MISUSE OF MAILS CHARGED
In Promoting Sales of Land In
New Mexico.
Maximum Penalty Is Five
Years on Each Count.

Kansas City, Jan. 20.-Don A.
MounDay of Topeka, kan.' and MIS-
L. D. w. MounDay. his wife, were
found guilty in the federal court IN
Kansas City, Kan, today Of misuse OF
the mails to defraud in the sale OF
lands in the upper Pecos valley OF
New Mexico.
The verdict was returned on nine
counts of a federal indictment that
originally carried ten. Each count
calls for a sentence OF not more .nai
five years in the penitentiary ana
fine Of not to exceed $1,000. Judge
Pollock withheld sentence.
Motion for New Trial Filed.
Attorneys for the MounDays imme-
diately filed motion for new trlal
and Judge Pollock set Jan. u - the
date for a hearing on the motion.
The defendants then ere released on
their former bond Of $500 each.
The tenth count Of the federal 1nolct-
ment was dismissed by the court yes
terday. The MounDays were indicted
by a federal gram jury in Leaven-
worth, Kan, last autumn on charge OF
use of the mails to defraud In the
operation Of the land department OF
the American 81 gar Refining and
Manufacturing company
The government charged MounDay
as general manager of the depart
ment and his wife as treasurer mis-
used the mails by sending out circu-
lars describing $4,000 acres of land
in the upper Pecos valley to be sold
in ten-acre tracts at 5000 each. The
MounDays, the indictment charged,
had agents all over the country who
represented the land was to be irri-
gated and a town and sugar factory
were to be erected. Then there was
to be a grand opening day at which
all purchasers were to be given deeds
to their tracts and be permitted to go
on the land and start raising sugar
beets for the factory.
1t was charged in the indictment
that the MounDays represented them
selves as part Of the sugar trust and
announced that they had obtained an
option on the New Mexico land from
from New Mexico. The governments
case was prepared by Fred Robert
son, United States district attorney,
and ]. M. Brady, his assistant.
The Governments Case.
The government introduced testi-
mony to show the MounDays had not
carried out the development scheme
they had promised and that so far as
irrigation and railway promotion was
concerned the schemes were imprac-
ticable Testimony was introduced to
show that the MOunDays had no valid
claim to the land they were trying to
sell. since the option obtained from
Senator Catron had been allowed to
expire. 1t was shown also that the
American Sugar Refining and Manu-
featuring company had no connection
with the American Sugar Refining
company.
Mrs. MounDay, according to the
government charge, as treasurer of
the company received the letters and
testimonials with regard to the land
which afterward were used in the cir
culars sent out as advertisements.
Witnesses testified that when they had
written the letters they did not know
of Mrs. MounDay's connection with
the land company and had no idea
the letters were to be used in circu-
lars. The MOunDays were first at
tackled in state courts under the
''blue sky laws" but while the state
courts were working on the cases,
federal investigators obtained infor-
nation which resulted in the indict-
ment at Leavenworth. About a year