The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1929-10-10
JURY LOCKED UP in
TRIAL OF constants
Head of Consumers Whole
sale Company Faces United
States Court
HAD STORE In THIS CITY
Hundreds of Thousands of
Dollars Belonging to Cred
itors Disappeared

Trial OF Nicholas NJ Constans.
former president of the defunct
Consumers Wholesale Supply Co..
on charge of using the mails to
defraud, was begun before Judge
William A. Cant in United States
district court Tuesday afternoon.
The selection of the jury occu-
pied the entire afternoon session
and when the panel was completed
Judge Cant announced his decision
to lock up the jury for the dura-
ton of the trial There are no
women on the panel. In explain
ing his decision, he said that the
case may be protracted one, land
while he hoped it will not be as
prophesied, think that it is best
that you be placed in CUSTODY Of
OFFICERS who will have charge of
you pending your verdict.
The Consumers Wholesale Sup
ply Co. formerly conducted the
grocery store in this city, now own
ed and operated by the National
Tea Co. There are several local
creditors.
The calling of the Constans case
was surprise, as it had been
scheduled on the court calendar for
wednesday, but with guilty oIeas
entered by three former associates
OF Constans in the Consumers
Wholesale Supply Co., at the MORN
ing session of federal court Tues
day, it was decided to proceed with
the trial. The men who entered
guilty pleas at the morning session
were Harry Reed, former part
time secretary of the company,
Fred e. Anderson, former auditor
and Joseph Sharf, former buyer tor
the company.
The men faced indictments on
seven counts of originating a
scheme to defraud and using the
mails to carry out the plan. Each
of the three pleaded guilty to one
count and the other six were nolied.
The men face maximum sentences
of five years in the federal peniten-
tiary at Leavenworth.
The Constans case was called at
Q p. M. James A. Wharton, assis-
tant United States attorney gener-
al, and former assistant United
States district attorney who con-
Quoted the investigation of the col
lapse of the Consumers Wholesale
Supply Co., in Nov. 1927, with the
loss Of over $1,000, 900 headed the
prosecution. $3.50
AS the trial opened, members OF
the jury panel were given an out
line Of the. case by Mr.. Wharton.
The defendant is charged with
having devised on March 81, 1925.
and prior thereto, a scheme to on
tain money and property by false
and fraudulent methods" from three
companies which are specifically
mentioned and from certain other.
persons" The companies named.
are Esch & Co., a Chicago broker
age Arm; Elliott & Co., of Duluths
and the Olson Fish Co., of Mime
apolis.
It is charged that Constans and
his associates employed Ernst &
Ernst, public accountants OF Min
neapolis, to prepare condensed
balance sheet for distribution; that
employees of the Consumers Whole
sale Supply Co., were assigned to-
aid these accountants in taking in.
ventories for use in that statement.
and that the employees were i'm.
structed to pad" the inventories
wherever possible without being.
detected. It is further charged,
that liabilities Of the company were
decreased by withholding them
from the accountants. In this way.
it is claimed, both assets and liabsl-
tiles were altered by several nun
dred thousand dollars.