The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1924-01-16


Some defendants are said to come
from various parts Of the country in
Guiding Pennsylvania, Missouri, New
York and Indiana. 1t is understood
a number of Indianapolis men are on
the list. Names win not be made pub
lie until arrests are made.
Judge Anderson set Feb. as ar
raignment day.
The Indictment contained sixteen
counts. 1t was returned TO Judge Al
bert B. Anderson. The grand jury
was dismissed until Feb. g. Ander-
son said:
Il don't believe it will be a very
long session"
Misrepresentation Charged
1t was charged defendants sold
shares of the Hawkins Mortgage Com
pany at far more than their true value
by falsely representing the company
was earning sufficient money to pay
substantial dividends, when it actually
was operating at a lose with a con
stantly increasing deficit
1t was further charged defendants
organized welfare loan societies, y
representing them to be 1.-THE strong
est of their class backed by the
Hawkins Mortgage Company with as
sets of s9,OO0.0OO. Both of these
statements were false Federal off.
cials declared
1t was alleged of the 102 welfare
loan societies organized onR thirty
eight ever opened their doors for bust.
ness, and Of these only twosBere not
operated at a loss. However, it was
alleged, dividends Of S per cent were
paid on the stock of all the companies.
out of money collected from the sale
OF stock
Collections Held Out?"
About 100000 of money collected
through these societies was held out
by some defendants for payment of
dividends it is charged.
Accor ding to the indictment the as.
sets of the Hawkins Mortgage Com.
pany were used principally for the
purpose of obtaining control of other
loan and mortgage companies.
Formation of these welfare loan so
cieties began in 1918, Federal officials
said. Postoffice inspectors and ac.
countants of the Department Of Jus.
tice have been investigating affairs Of
these societies. the Hawkins Mort
gage Company and affiliated organiza.
tions since June.
About that time bankruptcy pro-
cesdings were instituted against the
Cooperative League of America. an
affiliated concern and the Hawkins
Mortgage Company in Federal Court.
Three Under Arrest
This was followed by the arrest of
Hawkins, Scheib and Anderson on
charges of frauduiently using the
mails. They were bound over to .ha
grand jury.
Welfare societies had been organized
in FIT. Wayne. Evansville. Muncie,
Richmond. Marion, Logansport, An.
derson, South Bend, Michigan City.
Lafayette, Elkhart, Vincennes, Koko-
mo and New Albany.
Indictments also were returned to-
day against Thomas L. Hildebrand,
former cashier of the First National
Bank of Columbia City, and Louis A
Ackley. Hildebrand was charged with
violation of national banking laws
He is said to have embezzled about
S347 900.
Ackley was charged with using the
mails in an attempt to pass a forged
check. He was arrested here recently
after he was alleged to Nave tried to
pass forged $4,000 check on William
Fl. Thompson of the law firm of Mil
Ter, Daley & Thompson.
An indictment against Frank Fuchs.
former vice president OF the Citizens
National Bank, Evansville, Ind,
charges him with a shortage, said by
Federal agents to have been near $S3,
On0n Fuchs iS 11ndar. S0n nnn hnnd o