The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-05-11
REFUSES TO ENTER
PLEA TO CHARGES:
Will RAISE BOND
Counsel Contends Defendant
Was illegally Seized in
Istanbul Harbor
JUDGE MAKES NO RULING
Other Defendants Answer Not
Guilty to Accusations Of
Law Violation

Chicago. May 1l.-(P)-Samuel In
s,lll refused Friday to acknowledge
the jurisdiction of the United States
district court and uttered no plea to
the charge of violating the bankruptcy
act and using the mails fraudulently
in selling his company stocks.
Brought from the county Jail for his
formal arraignment before Federal
Judge Philip L. Sullivan. the elderly
prisoner remained silent and aloof
while his counsel entered a. plea
challenging his seizure in the harbor
Of 1stanbul as illegal and refusing to
plead him guilty or not guilty.
His fellow defendants on the bank
ruptcy charge, however, entered their
pleas of not guilty, and Judge Sulli-
van, without discussing the value of
Insults contention, postponed the
hearing until next Tuesday.
insult Immediately retired to the
judges chambers and his attorney,
Floyd E. Thompson, announced that
surety companies were scheduling the
100000 bond which would make un-
necessary his return to the county
Jail.
Refuses To Enter Plea
Immediately upon the calling Of the
hearing by Judge Sullivan, Attorney
Thompson rose and offered the plea
to the jurisdiction Of the court, pre-
venting his client from making any
acknowledgment that he is legally
held.
The plea commended that detention
of the Greek freighter Maiotis In port
at Istanbul was improper and that
his arrest, detention and finally deliv-
cry to an American diplomatic officer
were all without due process Of law
and tantamount to kidnapping.
Judge Sullivan received the plea
without comment and summoned In
sull,s old business friends to the bar.
Already his co-defendants. months
ago, had pleaded not guilty to the
charges Of mail frauds in marketing
the Corporation Securities Company
stocks.
Samuel insult, Jr.. was called first.
and entered his plea Of not guilty to
the indictment alleging improper
handling Of assets of an insolvent COM
pany Then in turn came Harold L.
Stuart Of Halsey, Stuart and Com
pany, investment firm; Philip ]. Nc
Enroe, who was vice president Of
Corporation Securities; John F. o.
Keefe, secretary; Edward J. Doyle,
president of Commonwealth Edison
Company; Stanley Field, former
chairman of the Illinois
National Bank and a director Of Cor
poration Securities: William r. Irwin,
and Charles w. Daniels.
Bond Is Accepted
At noon surety bona for $500, 900,
already signed by insult himself, was
approved by U. s. District Attorney
Dwight H. Green and signed by Fed
eral Judge Sullivan. The bond was
furnished by the Fidelity and Cas-
Ialty company Of New York.
insult was instantly taken in hand
by deputy sheriffs of Cook county,
who served warrants alleging larceny
and embezzlement from funds Of the
Mississippi Valley Utilities Invest
n,ent company. and another trip to
the Criminal Courts building on the
west side was begun.
There property had already been
scheduled toward the $4,000 bond re.
Quired on the state charges.
Say Defendant Was Squeezed
The government revealed that it will
accuse insult Of mulcting some $780,
100000 from the American public by
the sale of stock Of which some T.
100000 shares was sold in 1920 and
1880 when he found his utilities en-
pire threatened by the activities Of
Cyrus Eaton, Cleveland capitalist.
Eaton had bought up insult shares
and threatened to get control. It was
going to cost millions to buy him off.
In this emergency. prosecutors said,
insult organized the Corporation Sc
curities Co., Of Chicago, company
to own stock in other insult compa-
MES and to sell stock.
It had a short life. Bouncing as
high as SOL share in 1880, its stock
was on the counter at four for a-dol-
lar in 1882. That fall it was adjudged
bankrupt.
The selling literature used in getting
buyers for this stock, prosecutors as
serted, aroused the governments ire.
The indictment in the mail fraud
case. returned on Feb. ~, 1888, re-
prints some. One slogan was 'securi-
ties that endure" Readers were told
there Is no safer road to prosperity
than this"
When the receivers went into the
books. before reporting the company
bankrupt. they said they found that
49,
He had acquired shares Of Common
wealth Edison Co.. Peoples Gas. Light
and Coke company, and Public serv-
ice Co., Of Northern Illinois. and he
asked q flat price Of $3.50 share to