New Britain herald., 1929-11-18
tUNN0R BELIEVES
 BRIDGEPORT FIRM NSER|OUS STRAITS
American Fiduciary Corp. Prac- tically Wiped Out by Bank
 CTS Capital Group
S25,0OO CASH IN BANK IS
 ALL LEFT FROM S2,30O,OOO

Former Political Leader Says His
 Concern Turned Over Total of Sl.-
 95N. 900 to Gunder Companies as
 Call IOans-Statc Continues Probe
 of Connecticut Angle in Collapse
 of Trust Firms.
 Hartford. Nov. IS (R-Arthur r.. Connor, president of the American Fiduciary corporation Of Bridgeport, in Q statement today, admitted that his company had been almost entire iy wiped out by its utilization with the Howard II. Gunder group of l3 investment companies under inves- tisation by federal and state authori- ties in Connecticut. New York and New Jersey.
 Mir. Connor said that all that is left in liquid assets from $2,GUo. .000 in stock sold to the public IS $25.- pu0 in cash which he has placed in a Bridgeport bank as protection to stockholders.
 BIamcs Bankers Capital Co. Mir. Connor blamcs the defUnct Bankers Capital corporation of New fork for this situation. He said his company turned over 10 that corpor- ation a total of $1,950,o00. beginning a year and a half ago. on call. The Bankers Capital he said, assured him this sum WS protected by bank and trust company stocks, but it has been disclosed the only collateral the Bankers capital held forth for this amount consisted of stock ot affiliated corporations.
 This call money WAS used by the Bankers Capital for distribution among other members of the group. according to AIr. Connor The for !ncr republican leader Of Bridgeport described this transaction 10 Assist ant United States Attorney George J. Alln2or Of New York, who is seeking | to determine whether the mails were used 10 dofraud. According to Mir. l Mintzcr, Mr. Conuor told him that i the American ljiduciary corporation has only 525.000 in cash and large amount or worthless securities oi affiliated companies as the result oi it's call loan transaction with the Bankers capital. Part of this $1., @5o,oO0, according to Mr. Mintzer was used by the Bankers Capital tC buy stocks of the affiliated Compan- i les and the rest went 10 the Indiana . Investment Estate and he Financial 1 Stocks Estate.
 Federal authorities in New York l have failed to find collateral on the books Of the Bankers Capital which was supposed to secure this large sum by bank and trust company sc curtics. The Investigators have 1 struck a snaG in developing this i'm l portant disclosure by the disappear ancc of the books Of the Indiana Investment and the Financial Stocks ] Estate corporators.
 However. according 10 Mr. Mint ger, Mir. Gundcr owned 9S per cent of these two companies.
 NiOutiS Gives Facts
 Further light on these two cor poratiOns. however. came today from H. II. MOntis. sales manager of i tho Bankers Capital who resigned four months ago and is now operat- | ing his own company. the H. II. 1 Montis Securities Corporation in New York. From his home in sound | Beach Mir Montis said in a state ment that associates Of Mr. Gundcr were informed by the latter that the 1 Indiana Investment. the Financial l Stocks Estate. tho Gundcr Common . law Trust were formed for the sole purpose of reducing the tax bill Of the affiliated companies,
 'lt now appears that money of l