New Britain herald., 1927-03-07

! H ItbS !dtst returns COL!I be real lz'd on investments.
 He mentioned the New York Mutual Life Insurance Co, and the Underwood Typewriter Co. and their subsidiaries and drew 2 diagram to show how investments are made and exceptional profits realized He mentioned the Grown, Corona. and the l.. (, smith typewriter com- panles.
 sells stock in Factories
 On May s, 1926 Miss Hitchcock borrowed sl,o0o at the New Britain Trust Co. and gave it 10 klug 10 in vest for her. On July 1, she paid l off this loan and gave Klug 5000 more 10 invest. the s5,000 having come to her through the sale of 76 shares Of American Hardware Corp. stock. On December 10. she gave him s2,328.
 This money came from the sale Of Landers. Frary X Clark and Tor rington stock, and on December 17 she turned over 10 klug $500 In the form of a New York bank draft after she sold q first mortgage. Miss Hitchcock said Mr. and Mrs. klug | have called al her home since De- cember l7 and he dropped in alone a few times when he was going from ! Boston to New York.
 She entertained Mir and Mrs. ] Elug at Manor Inn and they enter taincd her at their New York apart nent. Having only two receipts from klug, she wrote him twice for other receipts and finally he tele- i graphed her that he would come here, which he did on February 21. 1 He had wanted her 10 borrow s4,000 at the New Britain Trust Co. Of this money he wanted her to pay off a s2,0O0 mortgage and give him so,000 to invest, but she told ! him she must have definite proof Of her investments 10 date before she could go 70 the bank and negotiate a loan. She invited Miss Margaret | ". Perkins of the law firm of Kirk ham, Cooper, Hunrcrford (, Camp to 1 her home and she and klug and l MISS ltltchCOCk lunChed.
 | Later they went to the office Of l the law firm. where Klug was ar rested In reply to Prosecuting At- ! torney Woods. Miss Hitchcock said the money she gave klug represent cd practically all her holdings. Her father left her 50 shares of Ameri- can Hardware Corp, and the Stanley street property on which was the S',50o mortgage. The balance of the Sl5, S2S she earned.
 Told She Couldn't Lose l Cross-eXamined by Attorney Nc Donough, Miss Hitchcock admitted that klug convinced her he had "in- side information" of such nature that her investments through him were certain 10 be prohta ble. "Ie told me l could not possibly lose," she said. She thought her money would be invested only in insurance companies and typewriter com panies
 klug outlined the plan In such .way as 10 impress her with the sta bliify Of the concerns and she at no time intended to allow him to use the money 10 embark on new enter prises or to finance get rich quick" schemes.
 Attorney Mcponough asked Miss ! Hitchcock whether or not she would have made complaint had the money been returned 10 her.
 Judge filling would not permit the witness 10 reply
 Mir, Hitchcock Of the Underwood Typewriter Co. was called by Prose- cutting Attorney Woods. He said he ls personnel manager Of the Under wood Typewriter Co. plant In Hart ford. The company controls the l-n- derWood Computing Co, with a fac tory In Hartford, and the Under wood Portable Typewriter Co, with q factory in Bridgeport
 He said there are no other sub sidiaries of the company. 10 his Knowledge. Cross by At tornoy McDonough, MT. Hitchcock said he Is not an officer of the com. pany but he has been told there are no subsidiaries other than the two he mentioned. Asked by Prosecuting Attorney Woods whether or not he is q relative of Miss Hitchcock. the witness replied negatively. He had not seen her until today.
 Judge J. Fl. kirkham testified that he had q conversation with Klug the day ot the arrest and Klug told him ne was 10 open typewriter store on ffth avenue. New York, the fol lowing week. The lease and stock and uNtHres were worth some money and T, K. Clark of 90s Broadway owed him $t,000. A typewriter com panr in New York owed him s2,- 800. He could not tell Judge Kirk nam the amount of money he had In New York bank. according to the witness. He wanted to draw up m agreement whereby he would sign over 10 Miss Hitchcock q Iifc insurance policy on which he would pay the premiums. After q long conversation with Klus, Judge Kirk ham did not believe him trust worthy, he said.
 NlUg said he could go 10 New York and bring back the money owed him, but Judge Kirkham doubted him, If believed he could r"'nrn even half the money. ""HId have used my influence not 10 have him arrested" Judge Kirk ham concluded
 Attorney Mortimer H. Camp tes- tiled that Miss Perkins brought Miss tlitcAco,k and King 70 the office. lie testified to the conversation they had concerning tn" investments he