Evening journal., 1922-03-11
EX-SALEM man
FRAUD SUSPECT

CONTINUED From First Page)
Philadelphia failed throwing thous-
ands of bonds upon the market for
sale. some OF these original bonds
turned up. with the exception Of
the slight change in wording. they
are the same as the bona-fide bonds
later issued.
About three years ago Mitchell
became a member OF the brokerage
firm OF Weber & Co. Philadelphia.
When the firm went on the rocks, II
sold it's holdings to Samuel ~ Hall
g. Co., OF which Mitchell became
member. but from which he with
drew last October.
Hall & Go. got a number OF the
$500 bonds Of Salem City. the other
members OF the firm apparently be-
ing unaware that they we're dupli-
Gates of authorized bonds. Hall &
Co. failed February s, with assets CT
$4,000 and liabilities OF s163,002.
Eighteen of the false Salem bonds
having a face value of $4,000, held by
Hall & Co, as part OF Mitchell's hold
ings. came into the hands OF the
Glenside. Pa National Bank and
we're latter offered to Cassatt & Co,
OF Philadelphia. The latter com
pany a few days ago inquired of City
Solicitor Grier. of Salem, concern
ing the bonds Close examination Of
these revealed that they were not
the bona-fide ones. but those that
had been ordered Cancelled. Another
block OF $4,000 worth OF the bonds
were sold for a brokerage house at
auction by Barnes & Lofland. Phila-
delphia. auctioneers. investigation
yesterday revealed.
Unauthorized bonds aggregating
approximately $4,000 Of the 10000
Issue have been accounted for, hav-
ing turned up at various brokerage
and banking houses in Philadelphia.
according 10 Warren A. WV. Grier.
city Solicitor of Salem. who is in
charge OF investigation.
Il have no doubt that Mitchell,
when ne was treasurer nine years
ago. took the entire $4,000 in bonds
] WHICH ne WAS A0AA W NAAAAAR RNH
said Mr. Grier.
1T is the most remarkable swindle
ever conceived. in the manner in
which It was put over" he said. The
whole thing occurred nine years
ago. and although about two years
ago, when Mitchell financed a steam
ship service out OF Penn's Grove
there was talk that he WAS usinl
20 municipal bonds that had been or
Y dered Cancelled. no person In Salem
{ could believe that an entire new $780,
= 600 bond Issue. which in form was
5 correct, but not authorized by the
city. was being disposed Of piecemeal
B by Mitchell
How he was able 20 conceal the
bonds and feed them out is marvel
What he did. no doubt, In order not
TO arouse suspicion. was to dispose
5 OF the bonds that didn't mature un-
til later years. You see, the bond
issue was for a period OF forty years
and was to be retired every year al
rate Of four $500 bonds until 1859
What Mitchell did was to take those
, maturing. say. In 1910. In that way
! the bonds wouldn't reach Salem for
. years to come. and no suspicion
; aroused concerning a duplicate il.
Z sue"
y Mitchell moved with his family
q from Salem 10 Merchantville eigh.
b. teen years ago. While he was treas
q urer of Salem from 1911 to 1914, h'
also engaged in other businesses.
Z He left the position in Salem. en-
G tered the real estate business, be
- came a partner In a meat store ant
- also bought and sold merchandise
During the boom days Of the war h
financed and organized the steam
ship service for munitions worker
between Penn's Grove and Phila
p, delphia. Strange rumors then wer
I, rife that In obtaining loans Mitch
ell put up large numbers OF munici
pal bonds.