The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1918-12-19
HAS ST. CLOUD RE.
CEIVEO A Lemon?
GOVERNMENT APPEARS TO BE
HARD ON TRAIL OF PAN
MOTOR COMPANY.
STOCK SALE PLAN CRlTlSCED
SAUK CENTRE HAS SOME STOCK.
HOLDERS IN CONCERN-FU-
TURE OF co. DUBIOUS.
Has st. Cloud been handed

las ~. SiOuu Deeu ndnQeI a
lemon?
Several months ago the Pam Motor
Company were on the rack at ST. Paul
at which time the unusual method of
the manner in which the company sold
its stock was inquired into by the
Federal Court.
A few weeks ago the Federal grand
jury at Fergus Falls brought in an
Indictment against Mr.. Pandalfo the
big "gun" of the concern. The case
has been set for trial in the early
spring.
Now the capital issues committee of
congress have disapproved of the nam
ner in which the stock has been dis
posed.
The intimation has been made many
times that the big idea back of tn
whole plan was a "get rich quick
scheme in which Pandalofo was the
principal BENEFICIARY. Stock has been
sold in many states. Sank Centre
people were given an opportunity to
get in on the ground floor" fer
friendships sake" "A number have
availed themselves Of the opportunity.
The result of the scrimmage for
outside coin is a nifty set of airy
factory buildings at St. Cloud. They
are too good to be dismantled, even if
the motor manufacturing proposition
proves to be a flash in the "pan."
At any rate. the following Washing
ton dispatch from Monday evenings
Minneapolis Journal will be of interest
to many Herald readers:
Washington, d. c., Dec. 16s-The
Capital Issues committee disapproved
the proposed sale of $1,800,000 of ad-
ditional stock by the Pan Motor COM
pany of st. Cloud, Mimi, "as incom-
patible with the national interest,"" it
was revealed in the committees recoms
mendation to congress that a federal
"blue sky" law be enacted. The COM
mittee referred to the Pan company's
stock sale project as "the type of pro-
motion scheme that should be sup
pressed"
The company was incorporated Jan.
8, 1917, under the laws of Delaware to
manufacture and sell automobiles,
trucks and tractors.
''The enterprise" the exhibit &C
companying the committees report
says, twas conceived by an individual
having no previous experience in the
business and without models, designs
or definite plans for production. AT
this date, nearly two years after in
corporation, the original conception
has not yet advanced beyond the ex-
perimental stage and there is no inn
mediate prospect that the company
can fulfill the extravagant promises.
Complaint is made that instead If
turning the actual production the pro-
moters shave been interested primar-
lily in selling stock" 1t is declared
that 1873 statesmen were engaged in
selling stock early this year.
Information obtained by the Capital
Issues committee which it says is adj
mitted by S. S. Pandolfo, the promoter
shows that up to Sept. 80, 1913, the
company has collected $3,945,486. Its
assets Sin plant or cash total $685.
100 or 42-2 per cent. of the amount
collected"
According to the committee the 9TH
en- So per cent collected has gone to
organization expense or promotion pro-
fits. Commissions to statesmen totaled
81, 156. 667 and to Pandolfo $3.50, 752,