Arizona republican., 1919-02-02
CHARGE FRAUD TO PLAINTIFF IN
 S1,000,000 SUIT
s. c. Pandolfo, Who Sued 63
 Arizona Bankers, Charg- ing Libel, Is Indicted For Alleged Misuse Of Mails

Samuel c. Pandolfo, plaintiff in a s1,- 100000 libel suit against 63 Arizona banks, said to be the biggest amount ever asked through the federal courts of this district for such cause, is also under indictment in Chicago, according to Associated Press dispatches received in Phoenix yesterday afternoon. Pan dolfo, with twelve other officers of the Pan Motor company, the dispatch states, is alleged to have fraudulently obtained more than s5,000,00o from 50,- 900 victims through misuse of the United States mails. The dispatch 1 follows:
 | CHICAGO, Feb. 1.-More than s5, l 000,000 is alleged to have been fraudu- lently obtained through misuse of the mails in an indictment returned here today against thirteen officers and promoters of the Pan Motor Co a Dell aware corporation with a plant at St. Cloud, Minn. It is charged that 50,000 persons were YictimiZed by buying stock in the concern.
 Those indicted are Samuel c. Pan dolfo, president of the company; John Barritt, Norman A Street, an attorney; George Heidman, Charles B. Schwab, 1 Charles r. Ladner, Fred Schilpin, Charles F. Buhnell, George E. Hans com, Hugh Evans, H. c. Revin, Jr., H. S. Wigle and Peter R. Phielman.
 Of the defendants. Street and Heid- man reside in Chicago. Wigle's home is in Spokane and the others all claim St. Cloud as residence.
 There are eight counts in the indic.. ment. They allege that the company has not been making automobiles, trucks and tractors as represented by fIa anfn l-o., a few machines; that stock of a par value of s5 was sold at s10 a share on the representation that half of this amount was to go as working capital" for immediate needs of the concern, and other half as capitalization proper. but that $5 of each s10 was retained by the men under indictment.
 SPOKANE, Wash, Feb. HI. 5. Wigle, indicted in Chicago for alleged misuse of the mails in connection with the promotion of the Pan Motors com pany, was arrested last night at Col fax, Washington, it was said today by the United States marshal. He was re- leased on S5,000 bonds.
 Brings Suit Here
 The Pandolfo suit was brought in this city January 6, $500000 being asked as actual, and s500,000 as punl~ tive, damages. The basis of the libe,, as published exclusively in The Repup- lican January [. lies in the publication in the proceedings of the Arizona Bankers assocation for May. 1918, ot an anonymous letter, signed "Presi- dent" This letter reads as follows, and is part of the complaint:
 MORRIS GOLDWATER, Secretary
 Arizona Bankers Association, and J. c. CHRISTENSEN, Secretary New
 Mexico Bankers Association:
 Gentlemen: You have operating in Arizona and New Mexico one MT. $. c Pandolfo. who recently moved from San Antonio, and I am writing you gentlemen with reference to this man Pandolfo. as he is a double barreled crook. The Commissioner of Insurance in Texas revoked his license outright and refused him the privilege of writ ing insurance in Texas on account of him continuously violating the law. Our Banking Commissioner forbade state banks from buying paper from the fel- low or in any manner taking obliga- tions in which he was interested.
 ''He has crooked more people and iu more ways than most any fellow we have ever had in this part of the coun- try in long time. I believe it is only just to the bankers of your state tha you tip them off to this fellow. If yol do not. he is certainly going to hang { tot of them before he is found out H. is one of the crookedest white men b. illiAot a,aWigl,eMn F. U--i
 have ever seen. His present address, understand, is at Tucumcari, and he il promoting some kind of an automobil