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Show mma mm yem, mem7 Tongue ' Ladling Gt6d Out to Five Defendants ! Judge Scores Company Heads for Conduct and Adds Costs of Trial to i Penalties Imposed ,. raited ri HELENA, Mont Feb. 14 Crushed by sentences totaling; total-ing; nearly 50 yean at hard labor and f lnei running Into th thousands of dollars, 18 Baldwin Radio corporation officers and employes were led from federal court here today, convicted con-victed of 11 counts of fraud and conspiracy. , "You have violated the laws made" to protect the United States mails st least 100.000 times," Federsl Judge George M. Bourquln told five former 1 directors of the company. Nathaniel Baldwin, president of the concern; Lorenio Stohl, Charles H. Barnett X. H. Nathan and Frank t. Keller Jr., the five directors, were sentenced to five years at hard labor and given a blanket fine of 120.000. Keller, according to U. 8. District Attorney Wellington D, Rsnkln, already al-ready la under sentence In Portland, Ore., on charges similar to those brought in the Montana court. "MUST FAT PBICH" "The time haa come for you to pay the price," Judge Bourquin told the five men. "Your scheme was sunt is r to that of Kreuger and Insult. You are highway robbera without the courage of a sneak thief, in that you aent men into the highways and byways by-ways to take money front teachers, priests and working men. "The law provides you msy be sentenced sen-tenced to five yeara on each of the 11 counts against you, or fined SS0U0 on each count. Inasmuch as you origlnsted the scheme which brought these charges, you will be sentenced together. Attorney William Hlgglna, representing repre-senting Barnett, asked a stay of execution exe-cution tor his 70-year-old, white-haired white-haired client Attorney 8. C. Ford made a similar request for Baldwin. Both pleas were denied. "In all my 20 years on the bench I have never granted staya eg execution exe-cution In such ceses unUI appeal has been filed," Judge . Bourquin commented. com-mented. Two brothers, Joseph and Harry Green, next were sentenced to SO months' imprisonment and fined tiiOO, "You were Faglaa teaching a lot of little Oliver Twists to Meal, snd you profited kendsomely in your operations la Great fella, Mont the 1 Judge ssid. The brothers too more then SJO.OOO from Great Fails investors, inves-tors, realising 46000 in aommlaslons from their sales, the judge declared. BIMAININQ NINB CALLED The remaining nine defendants were celled before the judge. "You imposed upon others and betrayed their confidence," ha charged them. "I MnUan vou to two vmpb Im. prisonment at hard labor and a line of 11 000 each." Those so sentenced were Henry H. Faulkner, George W, Reidman, Xinar Brown, Floyd Dixon, John K. Martin, W. H. Haueter, A, A. Madison, Harvey Har-vey Penney and N. M. Hanson. Than, capping the tongue-lashing snd sentences he bed given. Judge Bourquin ordered costs of tha trial assessed agslnst the defendsnts. Government Gov-ernment officials estimated costs of the prosecution alone to be 115,000. Witnesses were brought from all parte of the nation to testify in the cese, and federal agenta spent nearly near-ly three veers collecUng evidence. "Tske em awsy," Judge Bourquin brusquely ordered as the sentences were finished. He turned without pause to a list of prohibition cases docketed for the dsy's calendar. The verdict of guilty, presented by J. A. BsrUett, foremen of the Jury of working men and farmers who hesrd the esse, brought retribution for a gigantic stock-eelling csmpaign. The Jury took tha case at S:U p. m. yesterdsy and reported promptly at M a. m. today, as they bed been ordered to do by Judge Bourquin, Eighteen men originally were Indicted In-dicted in Butte, Mont, in the case. One, Dsniel J. Alexander, a leeder of the Utah bar and outstanding Salt Lake City citizen, died before the trial began. Charges against Fred R. Wool-ley, Wool-ley, Salt Lake City, were dismissed when it wss shown ha was connected with the corporation only through ' Otmtlaaeden Pass Three ander had caused aome change to be made In company record. Samuel Stark oi Salt Lake aayj ho wai the witness, and hia correct testimony, ho says, wss that Frank Keller, a defendant In the case, and not Alexander, had caused changes to be made. On that same day charges against fred R. Woolley, Salt Lake broker, named as on of th II defendants, were dismissed upon motion of O. W. Beldon of Lewulon. Mont, associate associ-ate of Harley W Gustin of Salt Lake, counsel for Mr. Woolley. Correction of Mr. Stark's name and testimony Is made by The Telegram at Mr. Stark's request BALDWIN CASE MEN CONVICTED iConllaued rroai Pas Oosl loans to Alexander and Frank E. Keller Kel-ler Jr., another defendant Officers and employes, rsnglng from Nathaniel Baldwin, president of ' the company, to a group of salesmen, stood trisl together. Bsldwin wss pictured throughout the hearing as a laboratory genius - unwittingly victimised by his business associates. The defense maintained he knew nothing of any fraudulent schemes to sell Baldwin shares, and even took legal steps to hslt Improper connection of his nsme with company operations. Judge Bourquin, In his final remarks re-marks to the Jury, commented, however: how-ever: "Bsldwin wss smart enough to retain control of the company." Prosecutor Rankin, making a dramatic dra-matic closing plea, shouted: "Baldwin Is responsible for permitting his nsme to be used as a cloak of respectability for the company." DENT FRAUD INTENT Lorenzo Stohl, Sslt Lake City arid Phoenix, Aril., Investment man; Chsrles H. Barnelt, E. H. Nathan Na-than and H. H. Faulkner, all former for-mer directors of the company, denied de-nied any fraudulent intentions in sale of the stock. Their counsel maintained main-tained all had implicit faith in the future of the corporation in 182 and 1129. when the stock sales campaign i was at its height. I "Officials and employes wer common com-mon victim of th depression," De- I tense Attorney Harvey H. Cluff, for- I mer Utah state attorney general, ssid. 1 Stohl asserted he lost money i through his connection with the com- I psny, and hsd no knowledge of misrepresentation mis-representation In the ssles campaign. 1 Barnelt, 70-year-old Los Angeles, CsL, I investment specialist, claimed he re- ' ceived no compensstion for his services ser-vices as tha "phantom president" of i th organization. Faulkner's defense took an unexpected turn when Prosecutor Prose-cutor Rsnkin chsrged his former as- ' socistes hsd agreed to pin th blame on him in the trial because he was sn "outsider" in Sslt Lake City. Rankin Ran-kin dec Is red Fsulkner hsd no greater share of responsibility thsn the others: oth-ers: but wss equslly guilty with him. Sslesmen msintslned they merely followed Instructions of their officers. Their ssles talks were bssed on literature lit-erature furnished them In sales kits, they asserted. They had no knowledge knowl-edge of the technicalities, possibly unfounded un-founded ststements snd ramifications involved, their attorneys held. Government Investigators chsrged that 1910.000 worth of Baldwin shsres were sold on the strength of fslse clslms and by "high pressure methods" meth-ods" in msny different states. More Pennsvlvsnis. Tennessee, Illinois, thsn 80 witnesses were brought from Idaho, lows. California. Washington. Utah. Montana and other suites to testify. MONTANA INVESTORS LOSE Montana Investors lost $334,208 In the compsny, the government alleged. Coal miners, school teachers, railway rail-way employes, retired war veterans, doctors, merchants, and even priests, testified as the prosecution marshalled its evidence. Specifically it was charged the Baldwin directors and agents falsely clsimed solid profits for tha company com-pany when actually it was losing money snd in tha hsnds of the receiver; re-ceiver; misrepresented contracts for Baldwin radios snd tests: snd unscrupulously unscru-pulously sought to sell 2.000,000 shares of stock, msking glib promises and claiming ownership of plant and patents they did not own. Advertising pictures showing the Bsldwin company name over plants in Bloomsburg, Pa., and Waukegan. 111., were declared fakes by the actual ac-tual owners of the properties. Testimony Tes-timony was Introduced to show thst no Baldwin radios ever were manufactured manu-factured in Salt Lake City, but were assembled in plants of the Gilfillsn Bros. Co. in Los Angeles, Csl., and Waukegsn. Interlocking directorate In the Baldwin company and investment subsidisries also existed, it wss chsrged. The defendants allegedly manipulated the shsres In a "voting "vot-ing trust" of three men, and failed to properly deliver stock to the investors, inves-tors, federal agents ssid. Stark Testimony Error Corrected A United Press dispatch appearing in The Telegram February from Helena, Mont, stated that Daniel Stark of Salt Lake testified in the Baldwin case trial that Daniel Alex- |
