New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-06
A. ]. Drexel .Jr.
And ; Indicted
In Film Deal
Bankers Son Accused With
L. B. Jennings, Harry Bro.
laskie and Eliot Norton.
Lawyer, Who Is Arrested
Stock Oversale Is Charge
$3.50, 900 Disposed OF OH
$4,000 Authorized Can
ital, Prosecutor Declares

with the arrest yesterday of Eliot
Norton, lawyer with Offices at 2 Rec
tor Street, it became known that three
other prominent men-Anthony j.
DreXel, the younger; Louis B. Jen-
nings and Harry Brolas5ie are also
under indictment for violating Section
662 of the Penal Law, which makes it
felony for any officer or agent CT a
corporation to issue stock in excess of
the amount declared. The indictments
are the result of an investigation into
the business affairs of the Standard
Films Industries Corporation, of which
all four mentioned are officers.
Norton, who is the son of the late
professor of English at Harvard Uni
versity, was arrested at his office bv
Detective Bernard J. Flood, of the Dis
trict Attorneys Office Drexel is said
to be in London, Jennings in Chicago or
st. Louis, and Brolaskie in California.
Charge $359,000 in Stock Sold
In the indictment it is CHARGED tn +
the books of the coronation show that
$3.50 900 worth of stock has been sold
The firm was incorporated under the
laws of Virginia in October, 1916. In
the document filed with the articles of
incorporation it was stated, according
to the allegations, that only 200 shares
of stock, with par value of So. were
TO be issued
The officers of the Standard Films
Industries Corporation are: Louis B.
Jennings, presidents; Anthony J. Drexel
hn
ton. secretary; Harry Brolaskie, gen
cral manager, and Alexander Jackson,
treasurer. The directors are given as
A: J. Drexel jr., Andrew j. Cabe,
Phillip o. Mills, George A Murty. Eliot
Norton and l.. B. Jennings.
An elaborate prospectus was issued
by the company showing, it is said,
that it had taken over the studio build
ing Of the American Film Laboratories
at 69-71 West Goth Street. This pros
pectus also referred to the concerns
headquarters as the "Tiffanv's of the
moving studio" it is charged.
The stock is said to have been dis
posed of by salesmen who received
from 25 to 40 per cent commission.
Although some of these statesmen said
that the stock would be listed on the
curb market, this, it is asserted, was
never done. The capital stock was
given as $4,000, 900 to the authorities
in Virginia, but the attached state
ment showed the company only planned
to dispose of the 200 shares, it is said.
Assistant District Attorney Ferd-
nand @. Morton. who presented the
case to the grand jury. did so on COM
plant of the State Industrial Com
mission.
Under Inquiry Three Years Ago
The District Attorneys office inves-
tigated the sale of the corporation s
stock three years ago. No action was
taken then. At that time Angler B.
Duke was named as one of the direc-
tors. Later it was learned that Mr..
Duke was not director.
District Attorney Swami said yester-
day that the corporation had paid no
dividends on the stock sold and had
collected about 100000, the amount
named in the books being sold largely
below par. Of this amount between
$4,000 and $4,000 was paid by negroes
who live in Harlem, he said
Norton was taken before Judge Alfred
j. Talley in General Sessions, and after
pleading not guilty was released in
$4,000 bail.
The others named in the indictment
have not been taken into custody.