Permit or License Required

The lawsuit filed against my great-grandfather in 1950 includes a nine-page list of 25 counts typed on legal size paper, but at the trial on July 7, 1950, he pleads guilty only to Count No. 2, (which refers to an attempt to sell shares of stock in his company, the David A. Barth Oil & Development Co., on October 14, 1947, without first having acquired any permit or license as required by the state. Before soliciting money to fund corporate activities, he needed to acquire a permit or license from the Commissioner of Corporations of the State of California, as required by the Corporate Securities Law of the California Corporations Code. Even though the company's articles of corporation were filed with the state on July 31, 1947, that document alone was apparently not enough to fulfill the legal requirement for soliciting funds from outside sources. All other counts against him are dismissed at the trial. He is given a five-year probation.

Samuel Longwell pleads guilty to Counts 1, 5, and 17. All other counts against him are dismissed.

• Count 1: Conspiracy to violate Corporate Securities Act. This conspiracy constitutes conversations with Edward R. Riffle on Dec. 10, 1947 and with Adolph R. Schmidt on Nov. 15, 1947 at Riffle's home, then located at 1898 Market Street, San Francisco. Longwell also met and conversed with Riffle and Schmidt on June 13, 1949 at Schmidt's office in San Francisco.
• Count 5: On Dec. 15, 1947, Longwell attempted to sell a security or share of stock in Barth's company to Dr. Riffle without having the required permit or license from the state.
• Count 17: Longwell, on Dec. 16, 1947, did unlawfully take $2,500 from Adolph R. Schmidt.

 So this seems to explain why Longwell was sentenced to a year in San Quentin, although it seems that sentence was transferred to the San Francisco County Jail.

Other Counts Dismissed:

• Count 3: David Barth, on Dec. 15, 1947, through his agent Samuel Longwell, in conversation with Adolph R. Schmidt, solicits the sale of shares of stock without the required permit or license from the state.
• Count 4: David Barth, on Dec, 15, 1947, through his agent Samuel Longwell, in conversation with Dr. Edward R. Riffle, solicits the sale of shares of stock with the required permit or license from the state.
• Count 6: Samuel Longwell, on Dec. 15, 1947, in conversation with Adolph R. Schmidt, solicits the sale of shares of stock without the required permit or license from the state.
• Count 7:  Samuel Longwell, on Dec. 16, 1947, in conversation with John Schmidt, solicits the sale of shares of stock without the required permit or license from the state.
• Count 8: Samuel Longwell, on Dec. 16, 1947, in conversation with Dr. Edward R. Riffle, solicits the sale of shares of stock without the required permit or license from the state.
• Count 9: Samuel Longwell, on Jan. 17, 1948, in conversation with Dr. Edward R. Riffle, solicits the sale of shares of stock without the required permit or license from the state.
• Count 10: Samuel Longwell, on Mar. 25, 1948, in conversation with Dr. Edward R. Riffle, solicits the sale of shares of stock without the required permit or license from the state.
• Count 11: Samuel Longwell, on Mar. 29, 1948, in conversation with Dr. Edward R. Riffle, solicits the sale of shares of stock without the required permit or license from the state.
• Count 12: Samuel Longwell, on April 5, 1948, in conversation with Dr. Edward R. Riffle, solicits the sale of shares of stock without the required permit or license from the state.
• Count 13: Samuel Longwell, on June 21, 1948, in conversation with Dr. Edward R. Riffle, solicits the sale of shares of stock without the required permit or license from the state.
• Count 14: Samuel Longwell, on July 13, 1948, in conversation with Dr. Edward R. Riffle, solicits the sale of shares of stock without the required permit or license from the state.
• Count 15: Samuel Longwell, on Aug. 5, 1948, in conversation with Dr. Edward R. Riffle, solicits the sale of shares of stock without the required permit or license from the state.
• Count 16: Samuel Longwell, on Sep. 16, 1948, in conversation with Dr. Edward R. Riffle, solicits the sale of shares of stock without the required permit or license from the state.
• Count 18: Samuel Longwell, on Dec. 16, 1947, did unlawfully take $350 from Dr. Edward R. Riffle.
• Count 19: Samuel Longwell, on Dec. 16, 1947, did unlawfully take $1,500 from John Schmidt.
• Count 20: Samuel Longwell, on Jan. 17, 1948, did unlawfully take $350 from Dr. Edward R. Riffle.
• Count 21: Samuel Longwell, on Mar. 25, 1948, did unlawfully take $300 from Dr. Edward R. Riffle.
• Count 22: Samuel Longwell, on June 21, 1948, did unlawfully take $500 from Dr. Edward R. Riffle.
• Count 23: Samuel Longwell, on July 13, 1948, did unlawfully take $250 from Dr. Edward R. Riffle.
• Count 24: Samuel Longwell, on Aug. 5, 1948, did unlawfully take $500 from Dr. Edward R. Riffle.
• Count 25: Samuel Longwell, on Sep. 16, 1948 did unlawfully take $200 from Dr. Edward R. Riffle.