The New York herald., 1921-07-06
A. ]. DREXEL, JR., IS
INDICTED FOR FRAUD
Eliot Norton, Son of Late Har-
ward Professor, and Two
Others Also Accused.
SALE OF STOCK INVOLVED
Case Arises Out Of Standard
Film Industries, Inc,
Which Failed.

Anthony J. Drexel Jr., son of the
Philadelphia capitalist and son-ln-law
Of George j. Gould. is one of four men
indicted last Friday by the New York
County Grand Jury on charges arising
from the sale OF stock of the Standard
Film Industries. Inc. now inactive en-
terpl Use which claimed Drexel as vice.
president.
The others indicted are: Eliot Nor
ton, lawyer of 2 Rector street and
son of the late Prof Charles Eliot Nor
ton of Harvard University; Harry Bro
laslde of Redondo Beach. CAL and Louis
b. Jennings. 1t Is represented that
Norton was secretary of the corporation,
Brolaskie general manager and Jennings
president. 1t is understood that Drexel
is now in London, Jennings in Chicago
or st Louis and Brolaskie at his home
in California. Norton went to the Grim
inal Courts building yesterday, pleaded
not guilty before Judge Alfred J. Talley
in General Sessions and was released in
$1,000 bail.
The Standard Film Industries, Inc.
was organized in 1916 and had an am
bilious programme for manufacturing
superior motion pictures. According to
District Attorney Swami, IL sold stock
of The par value of $685. 900, paid the
stock salesmen commissions running as
high as 40 per cent and returned no
dividends. On complaint made by in
vest.gators for the New York State In
duserial Commission, Jennings and Bro
la5kie were indicted in 1919 on a charge
of publishing misleading advertisements
of the stock. Later. on the recommenda-
tiou OF Assistant District Attorney Ban
n discharged
from rail and presently the indictments
We're dismissed.
Mr. Banton, who is now District At
torney Swanns chief assistant, said yes
terday that in his opinion the facts as
gathered did not warrant the original
indictments The State Industrial Com
mission continued to receive complaints
from workers of small means, who said
they had been induced TO buy the stock
by promises of huge returns. Miss
Marian X Clark, an investigator for
the commission. went to Mr. Banton
with new evidence. He turned it over
to Ferdinand c. Morton, an Assistant
District Attorney, and the result was
the indictment of the four men last
Friday.
Messrs. Drexel. Norton. Brolaskie and
Jennings are accused of violating Sec
tion $50 of the Penal Law in issuing
more stock of the Standard Film In
dustries. Inc. than they were legally
authorized TO do. The corporation was
organized in Virginia In October, 1916.
and had an Office al 60 and II West
Ninetieth street New York. 1t is
charged that the corporation reported
to the Virginia State authorities that
it had issued only $1,000 worth OF stock
200 shares at $5 a share par value
whereas, 1t really sold S359,000 worth.
This was distributed to the public at
SO or $3.50 a share. the return being
about 100000, of which the statesmen
got large share.
According TO District Attorney Swami
Harlem negroes bought between $4,000
and $4,000 worth. About 5000, 900 was
collected from the poor and the ig-
norant," said Mr.. Swami. The maximum
penalty upon conviction of the crime
charged is seven years Imprisonment, or
a $4,000 fine, or both.
In connection with the mention of An
thony J. Drexel. Jr.. as a director of
Standard Film Industries. Inc, Charles
A. Roberts Of Powell. Wynne & Rob-
erts I Dey street. Drexers attorneys,
said
''The facts regarding the organization
and subsequent business failure OF