Show Millions l Are Lost to Bondholder Ring Receiverships Said to Bring Huge Returns Washington I Evidence disclosing the existence of ot called so-called chain committees com com- of ot bondholders centered In Chicago and New York and controlling millions of ot dollars' dollars worth of at defaulted realty bonds was made public by Congressman Congressman Con Con- gressman A A. J J. J Sabath chairman of ot the house committee Investigating re re- 1 Evidence concerning the operations of ot the committees and their affiliates Is II continuing to be uncovered with the result that prosecution may be requested request request- ed Id for tor vIola violation lion of ot a number of ot federal t and state laws Sabath declared The chain committees he declared I control from a few tew Issues up to as many as Issues of ot realty really bonds aggregating In par amount from a afew afew few million lon upward of at The chain committees the congressman congress congress- man anan said 11 Id form torm but one aspect of ot a national racket through which 20 citizens have been affected Nearly 1 of ot outstanding bonds are In default he be re re- ported Control or administration of or the chain committees Is nationwide the congressman reported Sabath said be he had bad found Instances where the called so-called protective committees com com- committees mittel's destroyed the value and Income income Income In In- come of ot the property properly Involved to enable enable en eo- able the bouse house of at Issue to purchase back the bonds for tor a song song He Ill added We have discovered Instances where committees have ha taken takeo bonds sent In to Into Into toto to them and posted them as collateral for tor loans to pay expenses and big fees ts fi per cent to the protective committee commit tee tle 5 1 per lIer cent to a management committee committee com com- 5 1 per cent to the lawyers and so on down the line They are arl resourceful and determined determined determined deter deter- mined to get away with everything they ca can n. n |