The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-10-19
SALESMAN OF
mULTI-x HELD
ON INDICTMENT
Lyle T. Laub Taken in Gus
tody- at indianapolis on In
dictment by Wayne County
Grand Jury.
.SWINDLIkC IS ALLEGED

Sheriff Carr was notified Tuesday,
that Lyle T. Laub had been arrested
in indianapolis. on an idictment re-
turned against him Monday by the
Wayne county grand jury, charging
him with obtaining signatures to writ
ten instruments by false pretense.
Laub, it is alleged, was employed as
stock salesman by the Multi-X Aircraft
& Motors company, a "bluesky" pro-
motion scheme, the promoters of
which suddenly departed from Rich
mond about three months ago, follow
ing an exposure of their undertaking
which appeared in The Palladium
Charges FaIsity
In the indictment it is charged that
Laub, 'Feloniously, falsely and know
ingly' induced Charles F. Estep, owner
of farm north of Richmond on the
Chester pike, to purchase 500 shares
ing his note for $4,000, secured by a
mortgage on his farm, in payment
The note executed by Estep, it is al
legged, was made payable to Laub in
stead of to the Multi-X company. 1t
Is stated in the Indictment that the
note and mortgage were executed July
9, last, and that on July "a Laub "un-
lawfully sold the note TO the Etna
Trust & Savings company of Indian
apolis. 1t is stated that at the time
Laub sold the note to the trust COM
pany he was in it's employ
Trust Company Innocent.
Prosecutor Freeman states that aft
er the trust company was informed
how the note and mortgage had been
| secured Laub was Immediately dis
| charged. The indictment refers TO the
Etna Trust company as the present
innocent holder" of Estep's note and
: mortgage.
, The second count of the Indictment
alleges that Estep signed the mortgage
| relieving, as represented to him by
| Laub, that he was merely signing a
| subscription for the 500 shares OF
| Multi-X stock. 1t is alleged that the
mortgage was unlawfully recorded
July 10.
| Charge Misrepresentation.
! The first count of the indictment
charges that Laub, in urging Estep to
purchase Multi-X stock, represented 10
him that the company had purchased
| tract of land north of Richmond val
ued at $4,000, that a factory was to
| be erected on this site for the manu-
facture of airplanes and automobiles
and that the business was to be con-
Quoted on a large scale.
The indctment charges that Laub
represented to Estep that the stock
of the Multi-X company, The par value
of which was SO a share, would be
worth SIS before expiration of the
note Fstep was induced to give. in
sixty days, and 1t is further alleged
tnal Laub agreed to dispose of Estep's
stock at SIS per share.
AIlege All Blue Sky.
The indictment charges that, in fact,
the Multi-X company never owned
real estate in Wayne county Or else
where; that the company promoters
had no intention of putting up a fac
tory or of engaging in the manufacture
of aircraft and automobiles; that the
Companys stock was worthless at the
time it was sold to Estep, and known
to be by Laub, and that it never will
be of any value.
1t is understood that during the brief
time the promoters of the Multi-X COM
pany operated in Wayne county they
were able to victimize quite few
people Their stock promotion activi-
ties ceased abruptly when The Pal
ladium published an article setting
forth the fact that the Multi-X conf
pany was nothing more than a blue
sky" scheme. This exposure was
made after the Palladium had conduct
ed a careful investigation
: Deputy Sheriff Wadman left for
Indianapolis Monday forenoon and re-
turned with Laub late in the after
noon.