The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1925-05-08


found not guilty of the sixth co
leges conspiracy.
JURY OUT 20 HOURS. >
The jury had been out % hours, re-
turning a sealed verdict at $3.50 last
night and appearing before Judge
George M. Bourquin at 10 o'clock
this morning.
False Ads Charged.
Campbell, discoverer of the Kelvin
Sunburst oil field in northern Mon
tana, was indicted April 8, 1924, by
a grand jury here-the same grand
jury that indicted Senator Wheeler
on a charge of using the mails to
defraud. The Indictment was brought
in connection with his promotion OF
the Gordon Campbell-Kevin Syndicate
No. 2. The government charged that
Campbell falsely advertised the value
of oil land contained in the syndi-
Gates holdings and that he misap-
propriated the syndicate's capital in
paying for advertising and promo
ton.
Chief Witnesses.
Charles F. Blocmhuff and E. j.
bell, who also were indeed, were the
principal witnesses against the oil OPP
orator. Campbell was prosecuted by
District Attorney John L. Slattery
and Special Assistant Attorney Gen
eral John S. Frat. Fratt, who is
from Cincinnati, was designated
special assistant attorney general to
represent the department of justice.
The accused operator was defended
by S. c. Ford and w. F. O'Leary,
Great Falls attorneys.
/ Senator Wheeler, who was found
not guilty Of a charge of unlawful
use Of his influence as a senator be-
fore the department of the interior as
a result of a jury verdict in federal
court here April %, was. d spectator
at the Campbell trial. His indictment
grew out of his employment by Camp
bell as an attorney to represent the
ell man in the state courts of Mon
tana.
Court View of Promotion.
Use for promotion costs of any
portion of funds raised by the sale
of units in a common law trust is
barred in the opinion of Federal
Judge BOurqEin expressed in his
charge to the jury.
In making the ruling, Judge Bour-
quin remarked that the point had not
been brought out by the prosecution
and that his intention was 10 call the
defendants attention to this interpre-
tation of the law Sc that ne could be
ready with an exception.
"Here is an obligation on the part
of this manager (CampbelD of the
Joint adventure" said the court. 'He
is not entitled under the law to APP
propriating one cent of that money
to his own uses or to- any purpose IN
til he has gotten into that enterprise
all those that everyone expects to
come in.
: "For instance, in this case, he adj
vertised $250,000 capital-2,50O units
at $40. He was not entitled to take
that money and spend it for the pur-
pose of inducing others to come in
He has nc right to pay one dollar in
commissions or for advertising, to
pay for expenses or to mail letters
or anything of that sort, because g
promoter or manager, the same as in
a corporation, who negotiates to- TN
dertake to get together joint adven-
turers of that sort to that extent is
in the nature of a trustee. That is
man must deal honestly with the
others, and it is his duty TO gather
the money together at his own ex-
| pense, if he wants to promote it. He
cannot spend it all getting it togeth-
er.
eff he can spend half, he coulC
spend all; so, the thing would be
broke the moment he has got in the
$4,000 investors.
Law Is Common Sense.
$50 by that, you can see that thu
law is only common sense. In this
case, when this money was taken ou
to pay commissions, to pay for ad
l vertising, mailing and expenses 0.
that sort, that was misrepresentation
) That was never made known to thu
joint adventWers. They were told
to all intents and purposes by this ad
vertising, that when all the units were
sold, there would be a capital of $3.50,
600 to operate with.
There was nothing of the sort
You can ask yourselves whether tina
was not intended from the very be
j ginning, whether that was not tn,
foundation from the very beginning
The arrangement between the de
: PENDANT and Bloomhuff (the promot
T err was to have so per cent for ex
I penses, and so on for getting the PEG
pie in"
Before launching into this phase c,
his charge to the jury, Judge Bour
Quin said:
81 want to say for counsel tina
, what the court is about to state nov
+ has not been at all adverted to by tn,
prosecution. Why, the court does nc,
know It could not be for the defend
1 ant to bring this out. So if it strike.
either party as not BEING within the