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Show Sentences Imposed On Five Salt Lakers By Montana Court Charles S. and Clarence Merrill Receive Five-Year Term, $2000 Fine Each; Others Get Lesser Penalties BILLINGS, Mont., Feb. 2 (AP) Sentences ranging from one to five years and fines of from $1000 to $2000 were given five former for-mer officials of the Merrill Mortuaries, a Utah corporation, by Federal Judge Charles N. Pray today. They were convicted yesterday of using the malls to defraud in connection con-nection with sales of stock of the corporation. Charles 8. Merrill and his brother, Clarence Merrill, each were sentenced sen-tenced to five years in McNsil Islam! federal prison and were fined $1000 on the first five counts in the indictment, and another $1000 on the last four counts. Soren Rasmussen was fined $1000 on six counts. Wlnslow Smith was given a one-year one-year suspended sentence, was placed i on probation for five years, and was fined $1000 on the first fivs counts of the indictment, another $1000 on the last four counts. George O. Elliott was given a one-year one-year suspended sentence, was placed on probation for flvs years, and was fined $1000. He was found guilty only on ons count Defenss attorneys made no Immediate Im-mediate motions for a new trial, but Indicated they may do so on (Continued en Page Eleven) ( Column Five) Sentences Imposed on Utahns In Montana Mail Fraud Case flung scheme operated from March 27. MM, to March 20, MSi, Misrepresentations as te" growth of the company were alleged, v "h financial statements Issued by the officers to Indues investors to buy stock. Ths government contended stock was sold on a money-back guarantee with promises of huge dividends and profits to Investors. It was charged that no dividends wsre paid and that no stock was retired. . The defense denied misrepresentation,, misrepresen-tation,, saying ths stock was sold to be retired at an indefinite) date when the mortuaries had become sufficiently established to retire stock Issues. Opposition undertakers, with costly cost-ly lawsuits, were said by the defense to be partly responsible for failure of the company, other causes being adverse legislation and economic depression. ' Nons of ths defendants received any money from the defunct company, com-pany, the defense argued, except for the sals of stock, and Charles 8. Merrill who was paid a small salary as president and general manager. -Basic Plan Outlined Henry D. Moyle of Salt Lake City, defense attorney, pointed out that the basic plan was to use money from stock sales In Montana to build mortuaries there and that the money had been placed In the hands of a trustee named by the Montana llftVtHasflt 4MeMMissVwAw ts46 tlMht this was done. He recalled thaf mortuaries were built In Butte, Great Falls. Missoula, Livingston. Anaconda and Phillips-burg Phillips-burg and that they are still operating operat-ing successfully, paying an annual rental to the receiver of $21,000. Seven defendants named in the Indictment were Charles S. Merrill, 966 Military drive, president of the defunct company; Clarence Merrill, 36 East Seventh South street, treasurer; trea-surer; Louis B. Merrill. South Jordan, Jor-dan, an incorporator; Wlnelow Fair Smith, 26 B street, vce president; Soren Rasmussen, Ssndy, former secretary;. George O. .Elliott 114 Ysle avenue, secretary; Thomas Merrill. Salt Lake City. . Thomas 8. Merrill was acquitted on a directed verdict and Louis B. Merrill was net tried because of Illness. - (Continues tress Pec One) the part of some of the defendants later. - Although all of the defendants were found- guilty on all counts In the Indictment with which they were charged, with the exception of Elliott-Judge- Pray- declared it was evident the degree of guilt varied to a great extent . "The court finds it difficult to place the defendants Rasmussen, Smith and Elliott in the same class with the Merrill brothers 4d I don't propose to do it" The jurors convicted four defendantsCharles defend-antsCharles & Merrill, Clarence Merrill, Rasmussen and Smith en all counts cited In the indictments against them. Elliott wag convicted on only one count. The Jury recommended leniency for Rasmussen. I One Defendant Freed , A sixth defendant at the time the trial opened. Thomas 8. Merrill, was freed last Saturday after completion comple-tion of testimony, when Judge Pray directed a verdict be found in his favor. Attorneys for Thomas 8. Merrill. In asking his acquittal by directed verdict argued he could not be proeecuted becauae of the statute of limitations. They contended he had severed all connections with the corporation more than three years before the indictment was returned. re-turned. Louis B. Merrill also Indicted in the case, was not brought to trial with the other defendants because of a critical illness. ' The indictment charged the defendants de-fendants organised the company aa a "scheme and artifice to defraud" by selling stock and bonds by- use of ths United States mails. Other counts cited specific Instances of alleged use of the malls Illegally. Trial of the case began January 14 and was Interrupted at one stage by Illness of Jurors. Ths Indictment returned by a federal grand Jury at Helena. Mont. April 20, 1S5, alleged ths Merrill Mortuaries, Inc., of Utah, now defunct de-funct was a key structure to defraud de-fraud investors by obtaining control of assets of the Deseret Mortuary company of Salt Lake City, the Merrill Mortuaries, Inc, of Oregon snd the Gateway Mortuaries, Inc., of Montana. Ths defense, on the other hand, contended that the Deseret Mortuaries Mort-uaries had been successful and that had ths company been permitted to operate in other states according to this plan It would have been successful success-ful there also. The indictment resulted from stock-selling in Montana during 1931, ten counts each citing a specific letter alleged used In a far- |