Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-11-03
ALL FELL FOR
MUNCIE 'PONZI,' ,
COURT Is TOLD
Judge Anderson AS
founded at Boob
Revelations.
HOLIDAY ON TRIAL
Sold Stock in 'Bunkum
Creek to Every
body

Story after story of shattered visions
of easy money and sudden wealth were
told by residents Of Muncie at the trial
of Alpha L. Holiday, the 'Muncie POnzi,
before Judge Albert b. Anderson in Fed
eral Court today. Holiday, young man
of less than 30 head of the now defunct
Holiday Investment Company, and who
Is said to have promised his clients a
modest rs per cent a month on their in
vestments, is charged with having used
the mails in a scheme to defraud.
All told Delaware and surrounding
counties lost something like S1.000000 In
the Holiday alleged -rich-quick scheme
before the bubble bursted last spring.
When court adjourned at noon Fred
erick Van Nuys, United States district
attorney. had made a strong case for the
Government and had not finished the
presentation of his case. In effect he
had shown that Holiday by represent
ing that he could pay 73 per cent month
had obtained large sums Of money from
Munce residents. his alleged victims
running the gamut from negro porters
and bootblacks to reputable business
men and a practicing physician.
ALL FELL FOR
HOLIDAY.
Holiday seemed to have been able to
came In contact Of his marvellous fnan-
cial ability, although he was vague in
telling prospective clients Just how he
was doing all this.
Invariably he repaid the first invest
ment promptly with the promised 10 per
cent interest, and almost invariably the
client would shove back all his earnlng4
and beg for the privilege Of adding more
for further investment. BY this mems
enormous paper profits were piled up
over a period OF about four months IN
1920
Finally when the load became too top
heavy with pyramided profits to carry
longer Holiday, organraed a cOmmo d.
law trust company ceued the Holiday
Investment Company TO carry or the
work. with Holiday as the real directine
force behind e.
DR.. Carl Schultz. proprietor of the
Muncie sanitorlum; John Schultz and
Granville Patterson, all Of Muncle, ware
trusetees. Dr. Schultz testified that he
knew about the eoaduct OF the business,
g1d that he always had implicit faith In
Holiday, losing $1,000 Of his own money
and $500 for relatives and patients IN
the deal.
NAME UBED
WITHOUT CONSENT.
he testified that his name had been
used in advertising matter without his
knowledge or consent.
Among the heaviest losers was wal
ter Nelson, Muncie ice dealer. who lost
more than $4,000 in the scheme, after
starting out with an original investment
Of 500.
4 typical case was that OF Glenn Sha-
n Ea yp hn gf0 FaH o1rt rs-ff
an investment of 500 and got $3.50 in
thirty days.
Il let this ride" shaner said, aud then
with a touch OF sadness In bis voices
added, "and It Is stiu riding"
Shaner also added more to the invest
ment until he was loser TO the extent
Of 1895. with only certificates of stock
In the investment company to show for It.
Dozens Of witnesses related experiences
similar in character.
On cross-examination NJ. A. Ryan, who
Is defending Holiday, made a strong at
tempt to prove that DR.. Schultz was get
ting a cash commission for all money he
induced clients to invest in the concern.
Ie admitted that he was. to get 25 per
cent, but insisted that II was paid to
him I'm worthless stock He said he
always had implicit confidence In Hola-
day, which brought forth from Judge
Anderson the remark.
SUCKERS THICK
IN MUNCIE.
"Who was It said there Is a sucker
born every minutef"
The court also expressed astonishment
at the ease with which money was raised
in Muncie and asked at one stage of the
proceedings:
Does money grow on bushes up
theref"
A large part OF the assets of the com
pany were leases on land supposed to
be valuable for oil rights. 1t was
testified that these lands were OF no
value from an oil standpoint. Some OF
the leases were for land located on
"Bunkum Creek" which brought a big
laugh from the entire courtroom, Judge
Anderson included.
1t is believed the case VIII reach the
jury today. Although no announcement
of the line of defense has been made it
IS understood that Holiday viii take
the stand IN his own behalf.