Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-26
BUSINESS LEADERS
IN JULIAN SCANDAL
More Than Score Among SIS
Indicted in Los Angeles
Are Prominent Men.
By the Associated Press

/ By the Associated Press
LOS ANGELES, June 25.-Names
Of more than a score of prominent
business men, including banker and
the richest officials of the Julian
Petroleum Corporation, were given
out today as among the SIS indicted
yesterday in connection with the
| 500, 100000 Julian stock scandal.
Among those indicted were I. F.
Rouse. vice president of the Pacific
Southwest Trust and Savings Bank.
and S. c. Lewis, resigned president of
the Julian Corporation. Both were
charged with two counts of conspiracy
to obtain money under false pretenses
and violating the State corporate Sc
curities act.
Several Give Bond.
Lewis and 13 others appeared In
Superior Court and posted bonds of
100000 to guarantee their appearance
later. Lewis and Rouse each put up
SIS 900.
Telephone notification Of those in
dicted was given by District Attorney
Asa Keyes, and as fast as they ap-
peared to post bail. the charges
against them were made public.
Others who appeared and posted
bond today were:
been a director of the pools which
caused the big overissue of Julian
stock.
H. F. Campbell, vice president of
the Julian Corporation.
r. M. Reese, president Of A. C..
Wagy & Co., brokers, who closed
their doors after trading in Julian
stock was suspended.
Charles E. Reese, his brother. vice
president Of Wagy & Co.
Alvin II. Frank. president Of A. H.
Frank & Co.. automobile finance
dealers.
H. w. Chotiner. dealer in invest.
ment securities and theatrical man.
Morris Weinstein. head OF Spring
street mortgage company.
/. o. Levy. president OF the Bereh-
ent. Levy Insurance Co.
Phillip Grossman. money lender.
E. Bastheim, jeweler.
j. Farbstein and H. Gutterman,
money lenders.
Charges Involved.
Rosenberg, Campbell and the Reese
brothers are charged with two counts,
one of violation Of the corporate Sc.
curities act and the other of usury.
while the balance Of those appearing
up to late afternoon were accused
only Of usury in connection with
loans made to Julian Pools.
Others indicted but who had not ap.
peared, were Jacob fBerman, alias
Bennett, now in New York; his broth
err, Louis Berman; T. P. Conroy. sec.
rotary Of the Julian Corporation. and
William c. Kottemann, manager OF
Wagy & Co., all charged with two
counts, and several money lenders.
History of Inquiry.
When the 1900. 000-share overissue
Of Julian stock was revealed several
months ago, trading was suspended on
the Los Angeles and San Francisco
Stock Exchanges and the State Cor.
poration Commission revoked all
stock sales permits.
The full extent Of the unauthorized
issue of shares, variously estimated TO
involve between $50. 100000 and $780,.
900 900, was not fully known until the
investigation was several weeks old.
luxurious interest rates are alleged
to have been charged by bankers and
money lenders during manipulation OF
the stock In pools.
Lewis, who took over the reins OF
the corporation when its founder, G.
c. Julian, retired two years ago, was
the principal witness before the grand
jury. He said few days ago he ex-
pected to be indicted.