Bisbee daily review., 1919-10-29
OPERATIONS IF PANDOLFO ARE
 TOLD IN COURT
Get-Rich- Quick Wallingford Methods of Alleged Swind- Ter Who Is Suinf State
 Banks Outlined by Attorney


 Banks Outlined by Attorney
 Of special interest to bankers and business men in general throughout Arizona is the account published be- low of the alleged Get-Rich-Quick- Wallingford operations of the Pan Motor company, thirteen officials of which are now on trial in Chicago on charges of using the mails to de- fraud in the sale of $7,00O.0OO worth of stock of the corporation.
 Principal among the thirteen off cials under indictment is Samuel D. Pandolfo. who is plaintiff in a S1.- 000,000 libel suit scheduled for trial in the federal court at Tucson in the near future, in which between fifty and sixty Arizona banks, comprising practically every bank in the state are the defendants. Pandolfo acted as president anG general manager of the company. and also as fiscal agent, in which capacity he is said to have cleaned up' a cool million and a half in commissions in a period of two years.
 Pandolfos suit against the Ari- zona banks grows out of a letter sent to the annual Arizona State Bankers convention several years ago on the indicted mans alleged Wallingford tactics, by a New Mex ico banker. The secretary of the Arizona Bankers association read the letter to the conventional, and it was incorporated in the minutes as so read, subsequently, being pub lished as having been read. to the convention. Pandolfo then brought suit against the banks for damages, charging that he had been libeled.
 Pandolfo is widely known for sis stock operations throughout the southwest. He at one time operated in Texas in the insurance business, and is alleged to have been barred from that state by the state insur- ance commission. He lived in Phoe- nix for a while, but is said to have met with a more or less cold recep- ton in his stock selling projects in this state.
 The deefndant Arizona banks and business men throughout the state are now watching with interest the
  the man who accuses these banks of libeling him, but who now faces charges of illegal practices in New Mexico, from which state the alleged "libeP' emanated. The following Associated Press dispatch is of inter- est as reviewing the alleged mal- operations with which Pandolfo and his confederates are charged:
 CHICAGO, Oct. 24.-Hearing of testimony in the trial of thirteen officials of the Pan-Motor company charged with using the mails to de- fraud in the sale of $7,000,000 worth of stock of the corporation will be- gin tomorrow morning before Fed eral Judge Landis.
 Counsel for both sides submitted their opening statements to the jury today More than 100 witnesses have been subpoenaed and it is eX- pected that the trial will last two months.
 S. R. Rush of Omaha, special pros ecutor, today outlined the govern | ment's case. Attorney Rush said he first heard of the defendants as in several cities in New Mexico in 1916, |
  company called meetings and offered to sell shares of stock to the public. Samuel D. Pandolfo and H. s. Wigle, he said, appeared at the New Mexi- can meeting as representatives of the company.
 "The scheme was to build a large plant for the manufacture of auto mobiles and farm tractors" said At torney Rush. Shares of stock of the par value of $5 were sold for $10 with the understanding that half of the receipts were to be deposited in the treasury of the company.
 "In New Mexico the promoters ex- hibited an automobile which they said the company proposed to sell for $500 each and make a profit of $50 per car The promoters said [ 3O,OOO cars were to be sold the fol | lowing year"
 Attorney Rush said that after op- erating in New Mexico for awhile, ! the promoters moved to Cheyenne, ! Wyo, where they continued their ac- tivities. Later in the same year headquarters of the promoters was moved to Chicago. "A tractor was DulIL WHICH the pTOuOt0lS CAhiDiIOU at Kansas City, Denver. Des Moines and other cities in the west to aid the stock selling campaign" said Attorney Rush. "The government has evidence that 1t cost the pro moters $700O to assemble that first tractor which the company was to sell for $1495.
 ''In 1917 the company had ten auto mobiles assembled by an Indianapo- lis firm for use in selling stock. The company itself did not build a car that year In 1918 the company man. ufactured 25O motor cars at a loss of $50,OO0."
 Attorney Rush told of a contract which Pandolfo entered into with the Pan-Motor company by which | he became it's fiscal agent, and re- ceived 25 per cent commission for advertising.
 Under these contracts Pandolfo is