People v. Syde

SHENK, J.

On March 8,1950, the district attorney of Los Angeles County filed an information against the defendants Milton and Harry Syde charging them in one count with conspiracy to violate the Corporate Securities Law (Corp. Code, § 25000 et seq.), and in 15 other counts with violations of the law by alleged sales of securities without first having obtained a permit from the Commissioner of Corporations. After a preliminary hearing in the municipal court the defendants were held to answer on each count. On their arraignment in the superior court they moved pursuant to section 995 of the Penal Code to set aside the information as to all counts on the ground that the commitment was without reasonable or probable cause. The motion was granted as to all counts except count 1.

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The People appealed from the order granting the motion.

The facts are not disputed. Milton Syde Films, Inc., was incorporated in July 1949 for the purpose of engaging in the business of making, producing, buying, selling and dealing in dramatic exhibitions for radio, stage, motion pictures or television and related activities. Milton was president and Harry secretary-treasurer. The corporation thereupon published a certificate of the conduct of a theatrical arts training school and production business on Santa Monica Boulevard in Hollywood under the name of Rossmore Productions.

[767]

Some of the complainants received postcards from the “casting dept.” of Bossmore Studios addressed to a child in the family whose photograph it is indicated had been seen in a portrait studio or elsewhere. The postcard informed the child that he or she would be considered for a motion picture film and requested a definite appointment. The parent took the child to the studio, where the child was accepted under a contract signed by the parent and one of the defendants. In one type of contract the artist (child) agreed to devote his efforts in the production of a film to be directed by Bossmore with pretraining of a selected cast not in excess of 25 members for a minimum of 16 rehearsals. The contract called for a down payment of $15 by the parent and payment of the balance at the rate of $5.00 per rehearsal until a total of $98 was paid. Bossmore had the option of rejecting any cast member and refunding the money if the artist did not qualify. It was also provided that upon the sale or other disposition of the film 60 per cent of the gross receipts would be distributed equally among the cast members. Bossmore was to pay all costs and expenses of the production. Another type of contract provided for participation by the artist in a minimum of one television sound film and called for payment of a total of $198, with a down payment of $100 and $7.00 for each rehearsal. Prom the receipts of sale of the television film there was to be deducted the expense of sale. The balance was to be deposited in a “reimbursement fund” from which 60 per cent was to be distributed to the members of the cast but not in excess to any one member of the contract payment of $198.