Newman

Appellants Cain, Newman and Files, with several others, were indicted for conspiracy to sell whisky at prices in excess of those permitted by the Emergency Price Control Act, 50 U.S.C.A.Appendix, § 901 et seq., and regulations thereunder. The court, sitting without a jury, found them guilty as charged. Sentences of a year and a day were imposed on Newman and Cain and each was fined $10,000. Files was sentenced to imprisonment for nine months and fined $5,000.

*9 The evidence discloses that early in 1944 Malaby, Nathan Newman and Morris Newman 2 decided to go into the whisky wholesaling business. They planned to get whisky from the East and to sell it at over-ceiling prices, but with orders or invoices showing only ceiling prices. The amount over ceiling was to be collected in cash. Files, a San Francisco realtor, agreed to act as escrow holder for these cash “overages” and the purchasers were given to understand that money deposited with him would be held until they received their whisky or were satisfied that it would be delivered. However, it was agreed among the defendants that money so received would be turned over to Nathan Newman immediately to be used in financing…