New-York tribune., 1918-03-29
Lieut.. A. ]. Drexel
Questioned About
Bogus Stock Deal
Millionaire Indorsed Film
Company Which Floated
100000 Issue
BY BRIGGS

Men of financial standing who have
permitted their names to be used by
promoters of bogus concerns to fleece
Sul]iblc public are in danger Of
prosecution if Assistant District At
torney Edward S. Brogan in charge of
the inquiry into the blue sky promo
tlons, can get legal evidence against
them Mr.. Brogan said last night that
ne IS preparing to take this phase Of
ms investigation before the grand jury.
Among the indorscrs of the "Stand-
ard Films Industries, 1nc.," which took
IN S3O0,000 in exchange for stock GER
tlflcatcs and then went out of existence
according to Mr.. Brogan, was Lieut..
Anthony j. Drexel, of Philadelphia, who
married Marjorie Gould. Lieut.. Drexcl
was subp|naed to appear before Mr..
brogan and Mrs. Marion x. Clark. of
the State Industrial Commission which
worked up the evidence against the
standard Film Industries, Inc.
Mr. Brogan and Floyd II. Wilmot
counsel for the commission. QUESTIONED
Lieut.. DreXcl, who said he was induced
to get behind the concern bv philn
Mills, of Mount Kisco, and added bo
oelieved IN the integrity of Louis r
Jennings, the indicted president and
promoter, although he admitted he
TOOK no steps to investigate Jenninos
lie said he didn't even visit the n,,n+
OF the corporation in West Ninet;eth
street to inspect its equipment and do
termine whether Jennings's representa-.
t'ohs that It would turn out 1000 OOn
fect Of films week were true.
Letter Sold Stock
Mr. Brogan says Lieut.. Drexel wrote
the following letter to William
feterson' selling agent for the broker.
age concern of Davidson G. Co.. which
underwrote the stock issue:
III answer to your inquiry relative
70, 70 my connection with the Standard
t,ims t,nt Industries llncD, beg to State
president, and as such take an act;No sIEo,
part IN ITS affairs. thorouphlv ho-
IleVc IN ITS future success or cIso :
would not be connected with il INV
.hefmore, IN conjunction with Nossrs
Jennings and Norton elliot NortonN !
am voting trustee and in consto,t
touch with my co-directors. Nr I"n
nlhgs ana others know that I am readv
ana pleased to do anything within nv
power to assist the Standard for +
al" oeepiy concerned in its success.
very truly yours,
,rA "A. j. DREXEL."
The letter was written on Stationery
Of the "Stock Exchange su,'c'erS Imnchea;S'
Club on November 20, 1916. and nVo, cnr;os
o. 1t were distributed, ACCORDING 70
Mr, brogan, all over the West
,. IN my opinion said the prosecutor
.n"' 'ellcr more than any other one
'nihg was responsible for the success
OF the 100000 stock issue"
Lieutenant Drcxcl tcld his orost;or
crs at the State Industrial Comm;ss;or
mat he attended three directors meet
ihEs IN the Office of Eliot Norton .
hector street, and that Norton, Jen-
n'nes ana himself were the only per
sc ms present. lie could not recall
whether any minutes were kent and hn
was unable to tell who had charge of
inc finances. He said he understood
mat the concern had twenty scllinr
agencies IN various parts of the conn,
tray.
Admits Being "Takcn In"
~ was taken in by jennings. that's
all | can say he said, when asked TO
explain his connection with the COM
rany.
MIR. Brogan received word Yesterday
from former Distict Attorney William
Iravers jerome that n number of Mr..
Jerome's clients would have complaints
against Jennings would go before the
grand jury if Mr.. Brogan desired il.
jennings Is on his way from New
wr'eans' y, "hers he was arrested lust
Tuesday night.