The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1922-07-04
Ar 6 j NJ ENTS IN
ARPENIER CASE
MADE ON FRIDAY

IVlAU[ UW fnlDHl
After hearing a motion in the case
of Ohio VS.. C. 3. Carpenter, charged
with violating the Blue Sky laws of
Ohio, and motion for a new trial In
the case Of Ohio VS.. c. 3. Carpenter
convicted on charge of embezzle-
ment, Judge Calvin n. Wood of the
Morrow county common pleas court,
announced from the bench at Mt. Gill
cad Friday afternoon that he would
take beth matters under adVisement
and hand down written opinions the
latter part of next week.
Judge Wood announced that he
would send a copy of the decisions to
Prosecutor Ashbaugh and copy to
Judge f. o. Levering, one of the at
torneys for the defendant.
The cases against c. B. Carpenter,
a former director of the Knox Tire
and Rubber company, were taken to
the Morrow county court on a change
of venue granted by Judge Blair of
the Knox county common pleas court.
The case against Carpenter, charg-
ing him with violating the Blue Sky
laws, started in the Morrow county
court on June 10, but the case was
taken from the jury on point of law.
This point was argued to Judge Wood
Friday.
The case against Carpenter, charg-
ing him with embezzlement, started
in Morrow county on June 20, and on
Pune 81, the jury returned verdict
of guilty Attorneys for the defend
ant Immediately filed motion for a
new trial and this motion also was
argued before Judge Wood Friday af.
ternoon
Blue Sky Question
Judge f. o. Levering made the op'
ening argument for the defense in re-
gard to the allgd violation of tn Blue
Sky law He first claimed there was
error in the manner in which the case
was assigned to Morrow county on a
change of venue.
The attorney next took up the ques-
ton OF the faulty indictment and then
the question of filing contract with
the state surety commission. The
Judge held that the filing of a contract
was not necessary when a manufac-
turing concern is growing institu-
ton. He held that the Knox Tire &
Rubber company was growing in
stitution at the time the contract was
made with the jenkins company and
that it was not necessary to file CO
py of the contract with the state sure.
ty department.
Carpenter was charged with violat.
ing the Blue Sky laws of the state OF
Ohio in that he failed to file copy
of the jenkins contract.
JuuBt lItNtI dlSO ihdl liO
stock under the jenkins contract was
sold within the state of Ohio-that il
was sold in Pennsylvania, New York
and New Jersey.
Mr.. EwaIt Speaks
Columbus Ewalt made the argument
for the state He alleged that the
Knox Tire and Rubber company was
not growing concern. He held that
the testimony showed that it was on
ly S5 per cent completed and that II
had never turned out any products
He held that the directors of the com
pany complied with all other require
ments of the securely department
filing articles OF incorporation, a co
py of the minutes of the board of di
lectors, but they failed to file copy
of the contract with the Jenkins com
pany. Mr.. Ewalt asserted the direct
ors must have been advised as to the
law for they carried out certain pro
visions, but failed to file copy Ol
the contract. Mr.. Ewalt asserted
that a copy of the contract must bt
filed Immediately, before any sales o.
stock are made. He asserted that ths
Knox Tire and Rubber company was
not growing concern engaged princi
pally in the turning out of a product
Hence it was necessary to file cop!
Of the contract
At this point Judge Wood inquired
as to the operation of an oil company
II the company was engaged in opera
tion il it erected IA derrick or II /
produced oil. Mr. Ewalt asserted tina
it must produce oil before it can b.
said to be in operation.
"Then if it got dry hole, it wa
not in operation?" interrogated tn
court.
Mr.. Ewalt still stuck to his argu