State v. . Pelley

20 S.E.2d 850, 221 N.C. 487, 1942 N.C. LEXIS 495
CourtSupreme Court of North Carolina
DecidedJune 24, 1942
StatusPublished
Cited by29 cases

This text of 20 S.E.2d 850 (State v. . Pelley) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. . Pelley, 20 S.E.2d 850, 221 N.C. 487, 1942 N.C. LEXIS 495 (N.C. 1942).

Opinion

This is a criminal action and the facts pertinent to this appeal are as follows:

1. The defendant and Robert C. Summerville were convicted in the Superior Court of Buncombe County, North Carolina, on 22 January, 1935, on counts one and two of the bill of indictment under which they were tried. Said counts being as follows:

"First Count: The jurors for the State, upon their oath present that William Dudley Pelley, Robert C. Summerville, Don D. Kellogg and H. M. Hardwicke, late of the County of Buncombe, State of North Carolina, on or about the first day of April, 1932, and at divers other times before and after said date, with force and arms, at and in said County, did unlawfully, wilfully, knowingly, fraudulently and feloniously sell and cause to be sold, and offered for sale, and caused to be offered for sale, and solicited the sale and distribution of securities and stocks of Galahad Press, Incorporated, a corporation organized under the laws of the State of New York, with its principal place of business in Asheville, North Carolina, to divers persons, through advertisement and otherwise, in a periodical and magazine published, mailed and distributed in said State and County, entitled `Liberation,' and by letters, circulars, etc., which said securities and stocks were not exempted by and not registered as provided in the provisions of chapter 149 of the Public Laws of North Carolina, enacted by the General Assembly of North Carolina, Session of 1927, and Chapter 71 A of the Consolidated Statutes of North Carolina and all acts amendatory thereof, without having first registered as a dealer and dealers, and salesman and salesmen in the office of the Corporation Commission and Commissioner of *Page 490 North Carolina, as provided by Chapter 149 of the Public Laws of North Carolina, enacted by the General Assembly of North Carolina, Session 1927, and Chapter 71 A of the Consolidated Statutes of North Carolina and all acts amendatory thereof, against the form of the statute in such cases made and provided, and against the peace and dignity of the State.

"Second Count: The jurors for the State upon their oath further present that William Dudley Pelley, Robert C. Summerville, Don D. Kellogg and H. M. Hardwicke, late of the County of Buncombe, State of North Carolina, on or about the first day of April, 1932, and at divers other times before and after said date, with force and arms, at and in said County, did unlawfully, wilfully, knowingly and feloniously and for the purpose of selling securities and stocks of Galahad Press, Inc., a corporation organized under the laws of the State of New York, with its principal place of business in Asheville, North Carolina, in this State fraudulently represent to the purchaser and purchasers, and prospective purchaser and purchasers thereof, the amount of dividends, interest and earnings which such securities will yield, in a magazine, periodical and publication published, mailed and distributed in said County of Buncombe, State of North Carolina, entitled `Liberation' which said false representations as aforesaid were to the effect that:

"`It is a fact surpassing strange that those who have been most active in the financial and moral support of the work done by the Galahad Press, The League for the Liberation, and The Foundation for Christian Economics this past year, have suffered few losses of note.

"`The work which is being done throughout the nation in promoting these wholesome christian principles, carries with it a sturdy, constructive vibration. The growth and prosperity of the Galahad Press this year when other publishing projects were losing or falling on every hand carries an esoteric significance not to be ignored.

"`The first year of the Galahad Press closed on February 7. Starting on a cash capital of $40, it forged its way ahead at a time of continually falling markets and ruinous depression, gaining in volume of business month by month, until it had done $56,731.57 in amount of business for its first fiscal year.

"`It printed and circulated nearly 150,000 copies of its publications and in connection with The League for the Liberation it disposed of 90,000 copies of the Weekly Liberation lessons. It paid out $22,372.83 in salaries to its workers and its item of postage alone reached $4,095.21. If its present rate of prosperity continues, it will meet its preferred stock dividend by its annual stockholders meeting-date in June.' . . .

"`There remains in the treasury of The Galahad Press over $10,000 of preferred stock untouched by the volume of business transacted this *Page 491 past year. This stock is valued at $10 per share and pays a 6 per cent cumulative dividend,' — when in truth and in fact the said Galahad Press, Inc., a corporation organized under the laws of the State of New York, was not in a prosperous condition and was not in a position to meet its preferred stock dividends, and its preferred stock was not paying 6% dividend, and those who had been most active in the financial support of the work done by The Galahad Press had suffered losses of note, and the disbursements had been much heavier than set forth in said representations, and the said Galahad Press was in an insolvent and failing condition and had lost heavily during the time mentioned in said representations, against the form of the statutes in such cases made and provided, and against the peace and dignity of the State."

2. By and with the consent of defendants, in open court expressed through counsel, prayer for judgment was continued until the regular term of the Superior Court for the trial of criminal cases, for Buncombe County, on 18 February, 1935, at which time the final judgment was to be entered.

3. On 18 February, 1935, the following judgment was entered:

". . . The judgment of the court is, as to both defendants, the judgment being individual, that the defendant Pelley be confined in State's Prison at Raleigh, at hard labor, for a period of not less than one, nor more than two years.

"The foregoing sentence of imprisonment is suspended for a period of five years, on the following conditions:

"1. That the defendant Pelley pay a fine of One Thousand ($1,000) Dollars and the costs of the case, which bill of cost has been approved by the Court as made up by the Clerk, and which, under the authority of the court is to include the total amount ordinarily for which the bill is made up by the Clerk, together with the exact amount which Buncombe County has heretofore paid out for the expenses of the jury during the thirteen days and the expenses of the official Court stenographer, it being the intent of the Court to reimburse fully the County for each amount expended by it.

"2. That the defendant be and remain continuously of good behavior.

"3. That he not publish and (or) distribute in the State of North Carolina any periodical which has to do with, or contains in it any statement relating to a stock sale transaction or any report of any corporation as to its financial value, or with the purpose of effecting a sale of stock in said corporation, without complying with the capital sales issues statute. . . .

"On Count No. 2, against the defendants Pelley and Summerville, prayer for judgment continued for five (5) years."

4. On 19 October, 1939, his Honor, Zeb V. Nettles, Judge presiding, October Term, Superior Court of Buncombe County, ordered capias to *Page 492 issue in the case of State v. Pelley, and the defendant William D.

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Bluebook (online)
20 S.E.2d 850, 221 N.C. 487, 1942 N.C. LEXIS 495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-pelley-nc-1942.