Douglas daily dispatch., 1927-07-01
|. A. FINANCIERS
face COURT ON
USURY CHARGES

LOS ANGELES, June 80 A9
Bankers, brokers and motion picture
Ima2nates, dragged by the law from
their upholstered swivel chairs to
the bare bar of justice, we're ar
raigned here today on criminal
charges in connection with the JUL
ian Petroleum hundred million dol
lar stock scandal.
From among the surging, perspir-
ing army of lawyers outnumbering
their half hundred clients nearly
two to one,h came the shouted mo-
ton to postpone the date pi o:ea
to July IL. After q discussion in
which everyone tried to talk at
once, Judge Albert Lee Stephens
agreed to Tie postponement.
John e. Barber, vice president OF
the First National Bank and Charles
Southwest Trust and Savings Bank,
each accused OF three counts OF
enbezzlemert and one OF accepting
a bankers bonus, we're the first names
to be called, leading OF The indlct-
ment against them was waived and
when Leconlpte Davis, representing
tle two men, asked for continu-
ance, tie Motion was delayed tenn
porarily while the roll OF other de-
PENDANTS was called.
Wien this was completed the for
NAL motion was made by an unseen
attorney ON behalf of the entire as
Semblage. Accord was apparent on
all sides and the granting of the
poStpOnement followed.
The men we're indicted by the
county grand jury last week after
two months investigation into the
immense share over-issue which pre-
cipitated the big oil concern into
financial oblivion. Charges range
from llsury to enbezzlement. Seven
bankers, including Stern and Bar
ber arc among the defendants, which
ers and insurance men, motion
picture producer, theatrical magnate
and many brokers and money lend
ers. The charges for the most part
are based on refinancing OF the oil
company through pools.
| Earlier today the city prosecutor
save out a statement made June 90
last, by S. c. Lewis, indicted former
president OF the corporation, in
which the hls4ne for the stock mess
was placed on Motley II Flint. exc
clltive vice president OF the Pacific
Southwest Trust anG Savings Bank.
The statement accused Flint OF hay
ing arranged through q pool known.
as the "Motley- Flint Pool" to re-
! finance the company with money
from various prominent men on
which interest said by the prosecutor
ITO amount to 22S per cent was co..
lected.
{ The statement declared Flint, in
accepting Lewis proposal to reTl-
nance the company, had admitted
previous efforts to do so we're usur-
icus on their face and insisted that
ia contract which did not show ex-
cessive interest be substituted. This
was done by buying the stock a. q
FIGURE So below market price on
agreement that Lewis and 6 broG
erage firm purchase it later at
market prices, thus realizing So per
share bonus.
/ Lewis. appearing as his own attor-
ney today served notice that a mo-
ton to dismiss the indictmeil.5
eGainst himself on the ground taa5
they were returned improperly woulQ
be presented.
Similar action was indicated when
counsel for Louis German, o broker
accused of usury, filed an affidavit
questioning the right of the grand
Jury to return indictments behind
closed and guarded doors, sucn as
was done when Be1man and others
were accused formally. This point
will be argued on the July date.
Lewis today was completing plans
for a general mass meeting of stock
holders to be held by him Juy Z,
a+ which the former Julian head has
promised to disclose what ne de-
clares are the facts OF the stock
muddle.