Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-02-15
MAY INVESTIGATE
OPERATIONS OF THE
|NTER-CITY TRUST

Boston, Feb. 14-Investigation Of
the operations of the InterCity
Trust may be undertaken by the
Federal grand jury assistant, United
States Attorney Joseph V. Carroll
said today. He indicated that the
use of the mails in connection with
the scheme which the Suffolk county
grand jury has held to have involv-
ed larceny, conspiracy and misrep-
resentation would be the special
phase of Federal inquiry if it were
undertaken.
The indictments of s. Leland
Montague, former trustee of the
project and George Stanford, an
agent. arraigned yesterday, the for
mer on counts of larceny and re-
ceipt of stolen goods aggregating
SoO,OOO were only two of a lot of
% returned secretly by the Suffolk
county grand jury last week. 1t APP
peared today that most of the other
secret indictments had to do with
| the Inter-City Trust case, and
arrests in many places were expect
ed.
The stock-selling activities in New
York state of a group of agents who
| sold shares said to have been pur-
| chased from Mantague have entered
| into the investigation here, it was
| said, but there has been no an
nouncement of any evidence OF
| fraud or action against any of the
| statesmen as vet
The 1nter-City Trust. described as
| q national cooperative real estate
organization. had holdings Of land
! IN several places in this state. In
a petition filed in the Federal court
| Yesterday it was alleged that 81 900.
600 had been obtained from invest
| ors, of which only S25O.OO0 was
| spent on development projects and
! $750,0O0 dissipated
Fred H. Williams. receiver for the
! City Trust. in a report made
| public today said that u large amount
| has been invested in tile properties
| of the trust. mostly real estate dc
| vclOpment schemes. He says that un-
! less something is done by the
! creditors to raise money there will
/ he nothing loft for the shareholders
| little for the general creditors and
| the mortgages viii have the proper
ties left on their hands. II the
| mortgages insist on carrying out the
| agreements with them in full. he says
| at least 100000 cash will be needed
| to save the situation. He is for SELL
| ing the Manchestcr.N. II. Lowell
| (Thc Bouldcrs and Sunset addition)
and Andoycr (Aldcr5-ooh) properties
and saving the Broollline property
! (Blake Park) on which $4,000 has
| been spent and considerable i'm
| proNementS made.
| According to the Inter-City share
holders Association the trust issued
| 100000 shares of common stock, and
by it's own efforts sold $4,000 shan os
at prices ranging between S11 and
SIS. On Sept. /, 1922. it transferred
| the balance to New York selling
agents and 81 statesmen from New
! York then disposed OF the stock as
| high as $40 Il share.
Many women. it was said. invested
| heavily in lntcr-City shares as a
result of this campaign
| The 81 New York statesmen regis
| tered with the blue sky commits
| sion for operations in this state. out
| when they were summoned to ap-
| pear at a hearing called as result
| of complaints the addresses given 10y
! the statesmen it was said, were found
| to be fictitious.
The operations Of the New York
statesmen were finally stopped by the
| Public Utilities Commission