Arizona republican., 1921-07-06
Grand Jury Indicts
 Film Officials In Big Stock Swindle
[RepublIcan A. P. Leased Wirel


 NEW YORK, July 5-Indictments charging Eliot Norton, lawyer and author; Anthony J. Drexel, Jr.. of Philadelphia; Louis R. Jennings and Harry Brolaski with selling unau- l thorized stock of the Standard Film Industries, Inc, were returned by the grand jury last Thursday, it became known today when Norton was ar rested and held in $5,0O0 bail. He pleaded not guilty
 MT. Norton, son of the late Charles Eliot Norton. professor of history of art at Harsard university, was named 1 in the Indictment as secretary and 1 attorney of the company. MT. Drexel was designated as vice, president, I Jennings as president and Brolaski l as general manager.
 The indictments grew out of an in- vestigation into the company con I ducted by the New York state indus I trial commission, following receipt I police said, of numerous complaints l from people of small means who claimed they had been induced to in- vest on promises of large return but had received no dividends. Accord ing to District Attorney Swann, m ire than $6,000 worth of stock was sold to negro residents of the Harlem sec ton.
 The company, incorporated in Vir- ginia, is alleged to have reported the sale of only 200 shares of stock at $5 each to the Virginia authorities whereas the indictment charges stock of $359,000 par value was actually sold at 8 to $3.50 a share, bringing in approximately $200,0 900. Statesmen ! were paid large commissions, rang ing as high as 40 per cent, according to the district attorney, who said nc dividends were paid.
 I Mir Drexel is said to be in Europe Jennings in Chicago or St. Louis ant Brolaski at Redondo Beach, Calf The specific charge is violation of { section of the penal code relating tt issuance of stock in excess of amour declared. The stock of the film cor
 poration was not listed on the curl market
 . The maximum penalty provided b,
 the law is seven years Imprisonment Brolaski Arrested in 1917 SAN FRANCISCO, July 5-Harr
 Brolaski, indicted in New York i
 connection with the alleged sale o s unauthorized stock of the Standar a Film Industries. Inc, was indicte n and arrested in 1917 in connectio n with the affairs of the concern. h a said at his home here tonight. Tn r case was dismissed in 1919. Brola sk
 
 L pending appeal of his conviction s the United States district court her
 as master mind' of an alleged whis d ky selling conspiracy with transac y tions. the government charged. run e ming into many thousanSs of dollar e On the whisky conspiracy charges h Q was sentenced to two years in Me It Neafs Island prison.
 1t T never was general manager
 the film cnunnanVb b Rro1a ski said fe
 night. Second, I know nothing
 the reported returns of sales said { l. have been made to the Virginia at n thorities. was indicted in this san se case in 1917. and the case was di. te missed in New York in Decembe y, 1e19 At that time I was arrested ar Redondo Beach, Calif, and returne nt to New York. I was released on s10 y 900 bail and then returned to Cal es fornia. Later the case against II ln was dismissed.
 a The moment my present difficu of ties with the United States goveri gs ment have been settled here. I'll r Tn turn to New York of my own wi CT without extradition and at my ov a- expense to aid in settling the fiji yh case. I'll do anything possible Is. assist District Attorney Swann he New York in Ats investigations al a have documents to aid him. I nev
 was general manager of the conce
 and I was not a director"
 Broalski has been i'll at his hor
 here and has remained in seclusior
 Broalski at one time was depar
 ment of justice agent in Chicas L mayor of Redondo Beach. chairm sa of the Republican county centr he committee of Los Angeles county, al n. according to his statement, "a r of formed confidence man."