The Topeka state journal., 1919-10-23
attorney general. will make the open
ing statement for the government.
Used Mails to DefraIfd, Charge.

attorney general, will make the open
ing statement for the government.
Used Mails to Defralfd, Charge.
Indictments charging that Samuel c.
Pandolfo. president of the company,
and twelve others, officials and direc-
tors. used the mails to defraud, were
returned by the grand jury last spring.
The company is a $5.OOO.000 cor
poration. which, according to litera-
ture and letters submitted to the
grand jury. was organized for the
manufacture of tank tread" tractors
legged that stock to the amount of S.
600, goo was sold thruout twenty-seven
different states in the central and
western parts of the country.
The Indictment charged that certain
portions of the subscriptions allotted
to a surplus fund.- to further the
manufacture of the Pan automobile,
found their way into the pockets of
officials of the company. 1t was also
charged that the company never sold
or manufactured tank tread tractors
One tractor, it is said, was planned to
aid in the sale of stock and for adyer-
tising purposes.
During the campaign an alleged
Pan automobile was exhibited in Chi
cago and a. large advertising cam
paign was conducted.
Letters mailed in Chicago to stock
holders in various parts of the south
and west were believed to be the back
bone of the governments case. A
number were mentioned in the indict-
ments. These communications warned
the receiver not to be alarmed at
rumors. They also related the prog
ress of the new buildings which were
constructed at st. Cloud, Mimi, and
urged the payment in full for stocks
procured on the installment plan.
Charge Bribery Attempt.
Directors and officials of the COM
pany live in st. Cloud, the home of
the company. Chicago and Washing
ton, D.. C.
The case for the government is be-
ing handled by Rush, District Attorney
Charles F. Clyne and Benjamin p.
Erbstein and James r.. Glass, assistant
district attorneys.
Clyne received word today from
Albuquerque, N M, of the Indictment
of Mrs. Florence Coleman, of Durand
N. M, said to be an employe of the
Pan Motor company, on the charge of
attempting to sbribe Mrs. James E.
Clark, of Belen, N. M, witness sum-
moned for the trial here.
Walter E. Wilson, state bank COM
missioner, has been summoned to Chi
cago as a witness for the government
in the case against the Pan Motor
before members of the blue sky board
by officers and representatives of the
company and will also review expert
ences of the board in seeking to regu-
late the company's activities.
It has been reported that several
hundred thousand dollars worth of
stock and securities of the Pan COM
pany were sold in Kansas. When sus-
picion was raised against the company
and the government began its investi-
cations, the Kansas board cancelled
the blue sky permit. Hundreds of men
and women in this state own stock in
the company, according to reports.
Many of the investors bought stock on
the installment plan. When the state
board refused to permit a continuance
of stock selling plans, they ordered
that the company withdraw entirely
from Kansas.
Stock of the company is said to be
scattered thruout the state. Many
Topekans hold blocks of the securities.
S. C. Kersey. with offices in the New
England building, is said to have been
an authorized agent and representa-
tive of the company. 1t is also re-
ported that the company at present
maintains an agency for their cars, al
tho dispatches from Chicago indicate
clearly that the company never pro-
duced cars for the market.