Imperial Valley press., 1930-03-29
BUSINESS
LEADERS
INDICTED
I vO Score ..PrOminen
L. A. Men Named Ii
Julian Scandal
MORE EXPECTED
Bernan's Testimony II
Cause OF New Sensa'
tion In Oil Mess

LOS ANGEu4ES, Mar. " (U.H-s r
Between 35 and 40 prominent bust
ness men and brokers were unde' r
indictment here today charged Will
having sonspired to collect usuriousk
interest from the Julian Petroleum
Corporation just before the 800,
100000 oil company failed in MayE
1927.
Most of those named in the true
bills returned by the grand Jury
were members of the first two FL |
naneing pools formed by Jacob Rer
man, Julian executive, so that III
could borrow money to support
Julian stock on the market.
The names of the accused mer
became known today as they ap
peared to place $4,000 bond each.
Among those who appeared til
make bond eatrly were E. Bath
stein, H. w. Chotiner, j. Forbsteins
Adolph Ramish, w. 1. Hollings!
worth and Alvin H. Frank, all
well known brokers.
Seven other men arranged bond
and planned to appear to have i'll
approved today. They were Louis
B Mayer, motion picture magnate;
Abe Prall, David Gordon, Phillip.
Grossman, Herman Gutterman, I. l..
Levy, and +. E. Harris, all brokers.
The huge pools from which these
men were accused of having taken
interest in excess of that allowed
by law indirectly led to the collapse
of the Julian organization under q
100000 share over-issue Of stock.
Berman, desperately attempting
to prevent the bottom from falling
out of Julian, allegedly arranged
the pools. He offered Julian stock
as collateral for immense short term
loans for which he paid excessive
interest.
Bought On Market
With the money thus received he
bought Julian stock on the market.
Forced to meet short term loan
he formed still another pool from
which he received more money for
still higher interest.
To help support his movement he
kept issuing spurious stock.
This system of financing finally
ran to it's end and the Julian stock
was ruled off the Los Angeles ex-
change when it hit a new low for
all time at 80 on May Z, 1927.
The members of pools one and
two, So in all, were indicted shortly
after the failure of the Julian com.
pany
The indictments, however, were
dismissed by Superior Judge Will
liam Deran when he held there was
not sufficient evidence to get con.
victions. a
Since the men renamed in the
new indictments never went to
trial there will be no case Of Sec
ond jeopardy in the new bills, it
was said.
Those indicted in 1927 from pools
one and two on the identical charges
of those accused in the new charges
were:
Pool No. III. A. Bell, Motley
H. Flint, F. E. Harris, Henry Mae
Kay, Jr., Alvin H. Frank, Joe Top
litzky, Adolph Ramish, w. 1. Hol-
lingsworth, R. E. Mooney, E. L. Me-
Mullen, E. H. Rosenberg, A. Prall,
Louis B. Mayer, Albert Lane, Phil
lip Grossman, Van G. Kelsey, NJ.
Cohn, d. Fox.
Pool No. 2.-J. l.. Rouse, f. H.
Rosenberg, Max Pruett, S. Good.
man, David Gordon, II. Gutterman,
M. Weinstein, E. Bastine, d. Rubin,
j Forbstein, Alvin H. Frank, Fl.
w. Chotiner, Philip Grossman, j.
katzen, l.. Leevy, David Horowitz,
Joseph Lipkey, A. B. Marcus, A. b.
Marcus.
The new indictments were re.
turned after two days of testimony
by Berman.
They came in the nature of a
since Berman had not com.
pleted his testimony and it was
thought the jury would wait until
Monday before issuing any true
bills.
Berman is expected to act as
states evidence in all the usury
cases. He also is scheduled to act
as states witness against those re.
Gently indicted for jury bribing in
the 1923 Julian conspiracy trial.
The defendants in the jury brib.
ing eases are Berman, s. G. Lewis.
former president of Julian, Louis
Berman, brother of Jacob, Louis
krause, private detective, and John
iroves and Frank Grider, jurors.