New-York tribune., 1922-03-28
Lindsey Before
Referee, Hears
Tales of Deals
Woman Stock Agent Saws
Broker So Impressed Her
That She Gave Him Her
{ Own Money on Two Notes
Also "Drunmed p''Sales
Sutton Tells of Figh, to
Regain S4.5O0: Hearing
in Bankruptcy Continued

Alfred Z. Lindsey, alleged swindler
~ women Rad brief respite from the
-orbs yesterday when he sat IN the
as.ce Of John J. Townsend referee in
bankruptcy. gt 299 Broadway. and
listened 10 testimony in the bank
-uc.cy proceedings against him. At a
,revious bearing Lindsey refused 20
.ss,ifv or the ground that his test;-
mony might be used against him in
tarnectioa with TIE criminal CHARGES
he is facing
The witnesses were Miss Florence
James. VINO was engaged to sell stock
q the Pacific Minerals and Chemicals
Company, and Redondo Sutton, former
president and now secretary Of the
company. Lawrence A. Tanner. Of
counsel for the receiver, cndeavored to
ascertain from them Lindsev's CON
rection with the mining company in
IN effort to trace the indicted brokers
assets.
Says She Gave Lindsey Money
Telling o. her first meeting with
Lindsey. Miss James said she was in
,roduced to him by Sutton at the
plaza Hotel She had been cmployed
she said, to sell stock Of the mining
company on q 10 per cent commission.
She understood the company had
mineral pr0v critics in California.
Nevada and Mexico and was so i'm
pressed by Lindsey's statements that
he "had friends IN big banks and DO
liticaily ct shingtoa" that she sold
some stock Of her own and gave Lind
sey the cash in exchange for two notes.
Asked by Mr. Tanzer as to what she
vrdslstood her duties with the mining
company were. Miss James testified:
10 introduce the stock and talk
about it. you know Go about among
ny friends Ike any drummer would"
After Miss James had testified that
sae held the position of a sort Of as
fistsnt secretary until February, her
further examination was postponed
until April 10.
Sutton described himself as com
nercial mining engineer and former
army officer He told Of organizing the
rneral and chemical company in
August. 1921, together with a group
of California people. Lindsey was sec
ptary Of the company for only few
weeks, he said. Questioned about his
previous relations with Lindsey. the
witness said he had known the broker
ior four wears and had in 1918. given
hin $4,000 with which to buy Industrial
Alcohol stock. He had to employ an
attorney TO get the money back, he
iaid
Believed Lindsey Was Wealthy
The Pacific Minerals and Chemicals
Company had q capital stock OF s1O.-
100 900. Sutton testified. Only $4,000
( the stock had been sold for cash.
e snid, and Lindsey ard subscribed
or 100000 shares. :sked why he
laced so much confidence in Lindsey.
utfon said:
"My impression was that Lindsey
'as verv wealthy. He was introduced
o me by responsible people and saw
m in company with people who were
Q esponsible."
Referring to the Pacific Minerals and
bemicals Company, Mr.. Tanner asked:
IS this a mining company or a stock
hbinc proposition ~
'Gt is a bona fdc legitimate com
ropcrty," Sutton replied with en-
basis.
Sutton said he had been supplantcd
Gently as president Of the company
R B. PARROT. Asked the reason
r the change. he said he had to ad-
it he was not a big enough man for
c job Of president He seemed CON
lent of the future of the company.
No Connection With Gun Firm
Lindsey had no official connection
ith the American Gun Company, &C
,rdinc 10 the witness. This concern
as organized by Sutton in 1918, he
ostfed, TO develop machine gun ap-
lances. Sutton said Lindsey had in
reduced him to a banker who was to
nance the concern. but it never ma
srializcd beyond the name. The wit
ness, questioned as to his acquaintance
with some Of the women who have ac-
,used Lindsey. said he understood Miss
lanes had arranged for the sale of
20 shares of the mining company
took to Sarah L. Arnold. The sale
vas made by Lindsey, Sutton testified,
ut Lindsey never received any pay for
rs services as secretary. Sutton's
urther examination in the bankruptcy
roceedlngs was adjourned until
.pril 81.
Grand jury investigation of bucket