Imperial Valley press., 1928-05-29
OIL. CASE
DROPPED
BY court
Julian Middle Collapses
AS Judge Dismisses All
Indictments But One
BENNETT is II E l. d
Blamed With Lewis For
Stock FiascO Which Lost
Millions.
Ry United Press Leased Wire

LOS ANGELES, May 29.-Indict-
ments against 10 Of II defendants
in the Julian Petroleum Corporation
failure case were ordered dismiss
ed today by Superior Judge William
Doran.
\ separate Indictment against
Jack Bennett, charging him with
forgery and cmbezzlement was not
dismissed. His ease j. now the only
one remaining in the state courts
for prosecutan.
The dismissals, Judge Doran de
clarcd, were made in "the interests
Of Justice" and ON his indepen-
dent judgment. .
Defendants freed Of further pro
secution by Judge Doran' s ruling
included John Il. Barber and
Charles Stern, prominent local
bankers. accused of conspiracy to
violate the bankers bonus act.
Other indictments against promin-
cnt financicrs and motion picture
people. including Cecil B. DeMille
and Louis b. MAYER, charged con
spiracy to violate the state securi-
ties act in connection with loans
they made to the Julian Petroleum
Corporation and for which they
were alleged to have received usur-
ious interest.
Before dismissing the 10 indict-
mcnts, Judge Doran made brief
statement from the bench in which
he placed responsibility for the fail
urr of the oil corporation ON ). {,
Lewis, former head of Julian, and
his confidential advisor, Jack Ben
nett.
Evidence insufficient
Judge Doran $ ruling was based
On the penal code and was made ON
the ground that there was insutf-
ricnt evidence to con let.
His decision on the matter was
made after 20 weeks of the taking
,f testimony in the trial of seven
men accused of conspiracy to wreck
Nlc oil corporation through the over
issue of between 100000 and
5.00O.O00 shares of stock.
Following the acquittal of all de-
PENDANTS in that ease last week
Judge Doran issued statement de
cluring that the district attorney $
office had not functioncd proper
" else some of the group would
have been found guilty.
lie repeated that stand today
when he said that Lewis and Ben
nett should not have been aequit-
ted.
Fifty two indictments were re-
turned when the county grand jury
probcd the failure of the Julian
Company -onc of the major finan-
cial catastrophcs of the Pacific
coast
Eleven were named in the charges
of conspiracy to ovcr-iSSuc stock,
the action which was held to have
caused the failure and the subse-
ouent loss of millions of dollars to
some 10000 stockholders.
OF this number ten went to trial,
three were dismissed during the
course of testimony and seven were
acquitted.
Cost County Heavily
The other indictments arose gen
orally from Julian pool operations
and centcrcd for the most part on
rsurious interest assertedly collect
ed for loans of money to the Jul
ian Company.
Barber and Stern were said to
have received bonus on loans they
made to the oil organization.
The various Investigations of the
Julian tangle cost the county in eX-
cess of 100000, it was estimated
today.
Except for the forgery and en-
bczzlcmcnt case against Jack Zen
nett, state charge, the only re-
maining action in the Julian failure
will fall to the federal government.
Lewis and Bennett are now out
ON bail on a federal warrant charg-
ing misuse of the mails in connec'
tion with the sale of stock in the
Lewis Oil Corporation and the fed
cral grand jury Thursday is expect
ed to investigate similar charges
against the pair in regard to their
conduct in Julian.