Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-26
5AMER|CAN BOND
OFFICERS INDICTED
is Counts of Mail Fraud
Charged in Sale of
Securities.

BY the Associated Press.
NEW YORK, August 26--Five former
officers of the American Bond g. Broker
age Co yesterday were charged with
use of the mails to defraud IN an
Indictment on l6 counts returned
against them after a four -meilth in
yestigation
Those indicted were William j. Moore
Of Chicago, president and managing
officer; his sons, Harold A., vice presf-
dent, and Kenneth, sales manager; his
stepson, Charles @. Moore of New
Rochelle. N. Y, vice PRESIDENT in charge
Of the New York offices, and Hayden
w. Ward of New York. Eastern sales
manager
William Moore, in statement, said
the charges were without foundation.
Fraudulent Sale Charged.
The indictment charges the defend
ants. through the company, which was
organized in 1904 under the laws of
Maine, with selling securities through
offices in Chicago. Boston, New York
and other cities to the public by fraudu
lent Misrepresentation.
The securities thus sold are repre-
scented in the indictment to include
bonds on "a buildings and preferred
stock and debentureS in the company
in sums in excess of $56,000,0 900.
Buildings specifically mentioned in
the indictments are located in seven
cities-Chicago, Detroit, New York, st.
Louis. Philadelphia. Palm Beach, Fla,
and Mamaroneck. N. Y.
The Chicago buildings are the AL
bion Shore Hotel, Churchill, 20 East
Cedar Street Apartment, Engineering
Building, Garden Court Apartments.
Graemere Hotel, Harbor View Apart
mentS, jackson Towers, Lincoln Robey
Building, Martinique, Ontario Mercan-
tile Building, Sherwin and Sunny
Court Apartments. The total issue of
bonds thereon is listed as $13,085,00
The Detroit buildings are the Barton
Apartments, Cadilaqua Apartments,
Carlton-Plaza, Miles Building. New
Whittier, Orville Court Apartments and
Pingree Park Apartments, the bond
issue for which totaled s5,205. 900.
Bonds in nine New York City build
ings totaled $22.285, 600, while in st.
Louis, Mo-. bonds on the Roosevelt
Building amounted to $575,0 900.
The Indictment mentions two Phila-
delphia buildings. with bonds in the
sum Of S2,2T5.000.
The whitehall Building in Palm
Beach at $3,000.O and the Carolyn
Park Apartments "a Mamaroneck at
s2OO, 900.
The indictment also mentions s7,000.-
coo preferred stock and $5,000,000 de-
bentures, bringing the total TO $751;
625, 900.
Security Inadequate.
The defendants are charged with
knowledge that the bonds were not
adequately secured. that not enough
money was withheld 10 finish buildings,
that appraisals on buildings of the
American Bond g. Mortgage Co. were
made by dishonest and interested ap-
praisers. that the appraised values were
fxed without regard to true value of
the property and that appraised values
were IN excess Of true values.
Moore's statement said: During the
IS years the American Bond & Mort
gage Co. was engaged in business, it
sold over 8 400 real estate mortgage Sc
curities, Of which $500 were the usual
type of mortgages sold to single in
weston. and 500 were in the form Of
bond issues
"Over 98i5 per cent of these mort
cages and bond Issues were paid at
maturity or are IN good standing today
Less than ~ per cent Of the total
number Of mortgages and bond issues
cold are now in default"
He said he believed the facts viii
prove any charge Of violating the postal
laws by the company to be unfounded.