Evening star., 1940-04-26
Western Union Named
By Federal Jury on
Race News Charqe
Wire Company and l8
individuals Accused
Of Conspiracy
BY the Associated Press.

BY the Associated Press.
CHICAGO, April 26.-A Federal
grand jury investigating use of wire
and radio services in dissemination
of horse-racing information returned
three indictments today charging
the Western Union Telegraph Co.
and 18 individuals with conspiracy
to violate Federal laws.
One indictment charged the West
ern Union and IL others had en-
gagged in dissemination of race news
over interstate wires and had op-
Grated lottery.
The second charged four Chi
cagoans with violation of the Radio
Communications Act, alleging they
had used radio facilities for distrib-
uting race news. The third indict-
ment charged three other persons
with violating the lottery laws.
Result of Annenberg Case.
United States Attorney William
J. Campbell said the indictments re-
suited from investigation of race
news services that developed fol-
lowing abandonment of the Nation
wide News Service by M. L. Amen
berg, wealthy publisher.
Mr.. Campbell said the principal
agency for the recently developed
facilities was the Continental Press
Service with headquarters at Cleve-
land. He said big time gambling
racketeers" were behind the devel-
opment.
Annenberg, who on Tuesday
pleaded guilty to one count of an
income tax evasion indictment, gave
up his country wide race news serv-
ices last fall in the face of Govern
ment indictments which alleged such
services contributed to operation of
lottery.
Former Annenberg Aides.
Ten OF those indicted were for
merly associated with Annenberg' S
Nationwide News. Federal Judge
James H. Wilkerson, to whom the
indictments were presented, issued
bench warrants for all ID.
Mr.. Campbell promised further
Developments by the grand Jury
before its scheduled dismissal May 4.
Western Union was charged with
"wilfully conspiring" with II indi-
viduals to violate the lottery laws
prohibiting the carrying of prize lists
over States lines. The Government
interprets the transmission of pari-
mutuel betting odds and prices paid
on winning horses as lottery prize
lists.
Among those named in the first
indictment were:
James M. Ragen, sr, Chicago, for
mer general manager of Nation wide
News Service, Inc, who was indicted
in the Annenberg income tax and
lottery cases last summer.
Arthur B. Mcbride, Cleveland, an
associate of Ragen and head of the
Yellow and Zone Taxicob- Cos in
Cleveland.
Tennes' Nephew Named.
Lionel c. Lenz, Cleveland, nephew
of Monte Tennes, former General
News Bureau operator and former
technical superintendent of Nation
wide. General News Bureau was a
race horse results distributing
agency.
Thomas F. Kelly, Cleveland, faith
er-in-law of Mcbride and former
branch manager of Nationwide at
Baltimore.
Thomas j. Ryan, alias Frank
Walsh, New York City, formerly in
charge of Consolidated News Serv-
ice, an Annenberg affiliate in De-
troit. He now is operating in Ho-
boken and New York City, the Gov
ernment said,
Morris Wexler, Cleveland, asso-
ciate of Mcbride and former Ma
tionwide distributor in Ohio.
Russell L. Brophy, Los Angeles,
Ragen's son-in-law and former as
sociate in the Southern California
News Bureau at Los Angeles. The
bureau, the government said, car
ried racing news service along the
West Coast.
Alfred Goodman, former Nation
wide representative in Houston, Tex,
now operating in Boston, Atlantic
City, Philadelphia and Baltimore.