Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-03-11

coupons from the bonds he had nut ur
as collateral. These coupons, Of course
were not turned in"
Mr.. Grier explained that when the
bond issue was authorized, as Of date
of December 1, 1912, the town decided
to put out the bonds itself instead OF
through bankers, and asked the State
Treasurer to take some. The Attorney
General examined the bonds and dis
approved the form. Some already had
been sold. and the entire issue had beer
isgncd by the Mayor, Treasurer and
Recorder and countersigned and guar
anteed by Salem bank. Holders OF
the first issue were asked to turn them
In for the new bonds. and the old issue
was ordered destroyed.
Tried Many Trades
Mitchell moved with his family
from Salem to Merchantville eighteen
months 'ngo.
The Mitchell family made but few
friends In Merchnntville. They live IN
n pretty but not pretentiOus rented
home.
Mrs. Mitchell today said she had nc
idea where her husband is. She said
she knew nothing about his business
affairs except that he was connected
with a brokerage house.
Mrs. Roy Lippincott, whose husband
owns the h0mE Mitchell rented. said
that about two weeks ago, Mrs. Mitchell
had asked that the lease on their home
be Cancelled. as Mr.. Mitchell was not
home and they could not afford to con :
tinuc to pay SO high a rent. Mrs. lip.
pincott said she had heard week be
fore that Mitchell had disappeared, but
had not felt at liberty to question Mrs.
Mitchell.
Residents of Mcrchantville say ths
Mitchell family lived quietly. did not
keep an automobile, and showed NJ
evidence Of more than ordinary means.
While he was treasurer of Salem from
1911 to 1914, he also engaged in other
business.
lie left the position In Salem, entered
the real estate business. became Il
partner In n meat store and also bought
and sold merchandise. During the boom
days Of the war he financed and or
ganizcd the steamship service for mu :
nitiOns workers between Pennsgrove and
Philadelphia. Strange rumors then
were rife that In obtaining loans Mitch
ell put up large numbers Of municipal
bonds.
When he became member Of the
brokerage firm Of Weber & Co.. in
March. 1910, he advertised extensively
in the Salem newspapers, urging his
tOwnsfOlk to invest In stocks.
Chnrges are made by those investigat. I.
ing that since 1913, when the bond is.
sue was made, Mitchell has hypothc. /.
Gated the $4,000.
Salem Shocked
Discovery of the manipulation of the
securities has caused the greatest shock
to the community Of Salem. 1t comes
with added force, as the city may be
required to pay $50, 900, as the false
bonds become due and the holders de-
mand payment A trail of $34. 900 of
the unauthorized bonds has thus far been
uncovered, Mr.. Grier announced today.
Other blocks of bonds disposed of by
Mitchell year after year are coming 70
light daily, according to Mr.. Gricr.
Some of the bonds are being found in
auction houses of this city, where Sc =
curities of defunct brokerage concerns
are being sold.
No official action to apprehend
Mitchell has yet been taken. A two
party action may be taken, one by City
Council, which will hold meeting as
soon a. .lr. Grier draws up prelim-
mary report of the scandal, and the
other oy prominent Salem residents,
who were joint bOndsmen to the extent
Of $4O.OOO for Mitchell when he was
Treasurer, at a salary of $1,000 year.