The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-05
GRAND JURORS
START QUIZ ON
GROCERY CHAIN
Operations Near Something
Worse Than Fraud
Judge Declares.
PROMOTER IS ARRESTED
Goods Obtained by False
PretenSeS, Bad Checks
Are Passed.

investigation OF operations OF the
defunct United Grocers, Inc, Ill
North New Jersey street, was
launched today by the Marion
county grand jury.
This action comes as the result
of the arrest late Friday of Frank
H. Brooks, 512 West Twenty-fifth
street, secretary Of the concern, fol-
lowing a hearing in circuit court on
his motion to dissolve a receivership
made Thursday.
The arrest was made as he
stepped from the courtroom on af-
f1davits charging that he obtained
goods under false pretenses and
issued fraudulent check.
The affidavits set out chat Brock
obtained goods valued at 1868. AZ
from the Ostermeir Paper Company
without paying for them and that
he gave worthless check for post
ers, bags, and other paper articles.
Methods Are AssaiIed
At the close of the hearing Fri
day, which resulted from the re-
ownership suit filed by Wallace M.
Huddleston, a sign painter, Judge
Chamberlin denied Brooks petition
to dissolve the receivership and de-
clared that his operations were
CLOSE to something a great deal
worse than fraud"
Chamberlin ordered Brock to turn
over all records of the company to
Edward P. Cato, the receiver.
Floyd Mattice, chief deputy pros
ecutor, was a spectator as the wit
nesseS paraded to the stand, and
described how Brock held out the
bait of managerships of grocery
stores as a reward for purchasing
unregistered stock
The United Grocers, Inc, was or
ganized several months ago and it
was planned to open 400 grocery
stores in Indiana, 100 to be located
here according to Brooks testimony
Has No Bank Account
Admitting that the corporation
had no bank account, Brock said
that he was able, however, to OBJ
tain the money with which to OPP
crate, and said that he had collected
1,400 from prospective store man
ayers and the money had been spent
lin constructive criticism"
He admitted that the Indiana
securities commissioner had refused
to grant him a permit to sell stock,
and also that he had issued several
fraudulent checks, but explained
that there was "a reason for it,"
Despite rosS-eXamination by Paul
Rhoadarmer, attorney, he did not
give the reason"
Damaging evidence was given
against Brock by Benjamin w
Johnson, Negro, 1850 Arrow avenue
who described his interview with
Brock.
Finds "StOre" Empty
He told that he was asked for
500 as an initial payment on $500
stock in the company, to become a
manager; and how, after haggling,
the payment was dropped to $50
and later $25.
Visiting the site of the store of
which he was to be manager, John
son found it empty.
Have you ever had any grocery
store experienced" asked the judge.
mo-" answered Johnson, "but if
Brock had enough nerve to hire me,
I had enough to run it,"
Evidence revealed that not store
had been opened.
Wendall Little, 523 Exeter street,
testified that he paid Brock 500
for some stock and the promise of
managership; Herman Kelly, $3.50
Eugene street, said he gave Brock
$500; William Webb, 1852 BurdsaI
parkway, testified he gave 500.