Douglas daily dispatch., 1927-06-02
STOCKHOLDERS
OF DEFUNCT OIL
CO.SHOW ANGER


of business men and women who were
heavy losers in the huge Julian Pet
roleum corporation stock overissue,
stormed the office of the district attor
ney today to give vent to anger over
alleged lethargy in the prosecution of
the case. They demanded to know
what District Attorney Asa Keyes was
going to do about it, and if S. G. Lewis,
resigned head of the corporation, and
others were to be allowed to skip the
country like Berman"
A guard of detectives prevented the
disgruntled stockholders from breaking
through the locked office door, from
behind which parley was held, end
ing in the admission of a spokesman
for a conference.
The spokesman, Lee Harmon, after
the conference told the crowd in the
hallway before Keyes' door that he had
demanded to know why with ali his
power and investigators he had tailed
TO make an arrest, and why sufficient
evidence had not been obtained to
warrant further indictments He said
Keyes declared his office was doing all
it could and that the case was before
the grand jury and now being investl-
gated. KeyeS declared that Lewis is
under close guard and will not get
away, and that he believed Jacob Ber-
man, personal representative of Lewis,
who has been the object of a country
wide search, was still in the country.
He said Berman would be arrested as
soon as located.
Among the group of irate stockhold-
erS was d. Spurlin, MOnrovia business
man, who recently filed q damage suit
against Lewis and A. C. Wagy and
company. The latter is a brokerage
firm which dealt largely in Julian
stock and which was put in the hands
of receivers after closing its doors.
The visit of the stockholders Wo5
followed by the first public announce
ment, on the Julian affair by the dis
trict attorney. He mentioned the
magnitude of the work in this case"
and in regard to arrests said it was his
desire to complete a thorough inves-
tigation and get at the bottom of this
affair before making arrests of those
who are guilty of criminal acts in the
conduct of this corporation" The
statement said the whole force of the
office was behind the investigation, the
county grand jury was actively CO.
operating and results will be obtained
as soon as humanity possible"
The Wagy brokerage company was
declared insolvent in petition in in
voluntary bankruptcy filed against it
in federal court today 1T was brought
by three creditors, H L. Stanley, Jack
DGTTic
Lewis again was before the grand
Jury today to testify in its investigation
of the stock overissue. Authorities last
night predicted that 80. persons would
be indicted on charges of forgery, en-
bezzlement and obtaining money under
false pretenses.
The district attorneys office has
stated that stock certificates bearing
apparently forged signatures have been
found in the possession of the Wagy
company. His investigators have been
assisting. receivers in examining records
and documents in the brokerage firms
safes.
Officials said the voting of indict-
ments to the grand jury was expected
to begin next week but refused to say
how many indictments would be voted
upon.
City Prosecutor E. j. Lickley, who has
been making an investigation OF
asserted usury in loans to Julian Pet
roleum, announced today that he had
requested Lewis to appear before him
for questioning tomorrow.
A Judgment against Lewis for $780,
600 was given in superior court today
to the n-American bank of Califor-
MIA, which had sued the former Julian
head on note. The note was secured
by $4,000 shares of Julian preferred
stock, according to the suit, at the
time the loan was made valued at more
than 100000. Later the stock was
cancelled.