The Michigan chronicle. [volume] (Detroit, Mich.) 1936-current, 1940-01-20
BY LARRY CHIsM

Blue Sky law charges against
George S, James, 36-year-old De-
troit poolroom AID hotel owner
were dismissed last week before
Municipal Judge Frank Cain ac-
cordins to Assistant Prosecutor
Sherman Bean.
Charged with Conspiracy
Instead James was named on war;
rants issued by Flint officials in
which seven other persons were
named on a charge Of conspiracy to
1efraud. Examinations were set for
January 10.
Those named on the blanket war;
rant are; Marie Heth. John Co.'S
tello. Walter Keopp, Charles Lead
better. Dr. Edward Smith. Carlton
Horton, Charles and Frank Nc
Gregor, an unidentified woman and
George James
James Bond, $4,000
Counsel for George James, R. NJ.
Van Dyne, Negro, Flint attorney.
stated be intended to challenge the
court for setting his clients bond
at $4,000 on the charge of CO.
conspiracy. He hoped to get the
oond reduced to $1,000. He added
that George James was charged on
two counts. ID selling securities
without a license in an amount ex-
ceeding $4,000, ~ conspiracy Of
selling securities 10 the public.
A Fantastic Scheme
Like a ball OF string, the longer
you wind it, the larger the ball
becomes, so=iS-the James swiudfe=
case The more the scheme is in
vestigated, the more complicated,
unfathomable and fantastic it be-
comes.
Interviewed
Reporters were able to get very
little in unraveling the big swindle
on questioning George James at
Flint last Friday. Asked something
about himself, the accused man
said:
q was born in Montgomery and
raised in Hartford, Ala....a long
time ago. l came to Detroit about
1927. For several years l worked in
Port Huron and Marine City.,..I
got hurt there. was doing con-
struction work for the J. H, Baker
company. worked for the Buick
company here (FlinD and made
my first trip in 1926" James stated
in a slow, southern accented voice.
Nattily attired in q pin striped
green suit, a color dotted white
shirt, brown tie, long toed tan
shoes, James looked like a pros
porous business man. His round
fat face and eyes showed signs of
apparent mental strain. His cell
mates called him Jimmie"
Acted As Front Man"
Questioned concerning his part in
the alleged swindle. he had this to
say:
There were no other Negroes
in the thing, was the only one"
How did you happen TO get into
the case?"
James answered, az met Charlie
and Frank McGregor during pro-
hibition days at a place Oh Hastings
street between Brady ard Living
stone streets in a blind pig. They
tMcGregors) showed ne blue
print OF medicine mixing machine
and asked me to go in with Them.
They said it was good investment
with big returns.
Invested Own $3.50
81 thought it was a good thing
and put in $3.50 OF my own money
Then parties started talking about II
Ind word got out about the big
money in the machine. Marie Heth
started talking. saying everything
would be ok. someday.
q met Marie when she used TO
come around selling some lamps and
things. / never hae any idea things
would turn out like this" James
stated suddenly. breaking the chain
of question coming from the re-
porters.
Money Passed Through His Hands
Horton gave me the money he
collected and ! gave it TO the Nc
Gregors. No. l didn't keep out any
Of the money for myself. l had
church Of New York City. H, will
sneak from the subject The Negro