New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-12-14

stood they revealed that he received be-
tween 100000 and $l,00O,0 600"
Twelve officers and directors of the
company were tried with Pandolfo. but
were acquitted. although charge Of
perjury against H. S. Wigle, a director,
is still pending.
Big Sum Offered to Buyers
Pandolfo, according to the vigilance
committee, was a Mississippi school
teacher. who branched out Into insur-
ance and then into promotion, ending
with the Pan Motor Company. whose
advertising and literature, 1t ID alleged,
suggested to prospective stock buyers
tnat the corporations prospects were
such that, Judging by the success Of
ne menry Ford, return OF $2t GOO, o00,-
VO0 to its ground floor stockholders was
not inconceivable.
The Vigilance Committee had been on
the Pandolfo trail for more than a
year.
without doubt" its report con-
tinues, "the Pan Motor case is the most
unique stock fraud in the history of
high finance.
"Pandolfo sold his scheme to a town
OF $4,000 people. He sold his stock to
more than seventy thousand people, in
Guiding representative business men Of
St. Cloud, Mimi, and hard headed
farmers throughout the West. Many
OF them, including one man who gave
up $24, 900, when brought face to face
with the facts on which Pandolfo
finally was convicted. still stated that
they believed in him and his scheme.
"The plant erected by Pandolfo at
st. Cloud, and which was one Of his
biggest stock selling arguments, is
located on a plot covering approx
mately fifty acres. The buildings are
immense. One building was said to
be more than six hundred feet long.
One Of the favorite pastmes of Pan
stock statesmen was that Of having com
mittees from live neighborhoods visit
the plant, then report back to pros
pective stockholders.
Plant Shown to Victims
Though the operation Of the plant
brought losses, not profits, the wheels
continued to turn, and the fact the
another factor that helped to sell stock.
Those who were taken to the plant re-
ported splendid buildings and turning
wheels.
but one witness in the Pandolfo
trial put it neatly when he said, in
effect, that he had not been interested
in seeing the plant-that if he had
paid So for a thing, he was not so
much interested in whether 81 Of it
went to the purposes intended as he
was to know whether some one had
stolen the other dollar.
I'm literature of the Pan Motor Com
pany Pandclfo promised 100000 cars
the first year. He stated that it stood
better chance than the Ford Company
IN the matter of making money, esti-
mating that Henry Ford produced
$3.50, 900 for every 500 invested in the
Ford enterprise.
"On this basis, If Pandolfo sold all
of the stock in the Pan Motor Company,
at the price of $40, the company would
nave to return, to duplicate the Ford
price was raised the latter part of 1919
to $3.50 to comply with promise
Pandolfo made in his literature to the
effect that it would sell for more than
$40 before it was all Sold
Few Real Automobiles Produced
"In the face Of this, including cars
assembled, cars made for stock selling
purposes and cars built for it BY
others. the Pan Motor Company has
produced less than 800 automobiles.
During the course of the investga-
ton. the committee says, Pandolfo pro
cured an ,"indorsement". in Chicago
write up" journal, which described
him as honest to a fault" Judge
Lands, of the United States District
Court, who presided at the Pandolfo
trial, sent the editor to Jail, in default
Of $4,000 bond.
Pandolfo, the committee further
states, not only put out advertising
"teeming with extravaganza statements,
but used letters of Endorsement after
they had been repudiated by their
writer's"