Omaha daily bee., 1907-04-27
OIL PROMOTERS LONG HAUL
Strenuous Pace Of q Get RiOh- Quick Con.
Germ in Kansas.
MILLIONS TAKEN IN ON OIL Stock
Thousands OF victims Found in All
Parts OF the COuntry-Indicted
for UsinE the Mails to
Defraud.

One OF the prominent boomers OF the oil
fields Of Kansas, Harry II. Tucker, jr., has
been checked in his strenuous race for
fortune by a federal indictment charging
him with using the mails to defraud
Tucker is secretary and treasurer OF the
Uncle Sam OIL company OF Cherryvale,
Kan. The company's namesake took SUI
ficent interest in the AFFAIRS OF the con-
Germ to look over the books, and finding
things not up to the real Uncle Sam stand
ard, Mr. Tucker was tucked under the
wing OF a federal officer and required to
give a bond OF $4,000 for his appearance
for trial at Topeka, Kan.
The career of Tucker IL set out with
much interesting detail in the Kansas City
Star. Formerly rowing newspaper re-
porter, he blew into the Kansas oil region
in 1904 and got busy. In some way he
acquired a majority OF the stock IN the
Publishers Oil company Of Cherryvale.
Shortly after this, when the price Of crude
oil declined and the Publishers OIL COM
pany was unable to do business at a profit,
Tucker conceived the idea of the organiza-
tion Of an oil company under the laws OF
Arizona
with James Ingersoli, J. II. Ritohie and
a man named Cooper he organized the
Uncle Sam OH and Refinery company, with
capital stock Of S5O,OOOOOO This was in
February, 1906. There were 6O,OOO,OOO shares
Of par value Of 81 each. A little later
Tucker amended the charter, making the
capital stock 100000, the par value of
each share to be the same. One million
shares were in preferred stock, with a
voting power Of eight votes to each share
Nine million shares were in treasury stock
with one-half vote for each share.
On the Ground Floor.
! All the preferred stock was allotted to
Tucker He made no payment for this
except to charge himself with $4,000 on
the books of the company. BY this ar
rangement Tucker had 100000 votes in
the affairs of the company as against $780,
| 900 votes of those who held the treasury
| stock
The purpose Of the corporations, as out
| lined by Tucker. was to do a general oil
business. Tucker then acquired small
tracts of oil land. He was now ready to
take the public into his confidence, for
he began most extensive newspaper ad-
vertising all over the United States. He
advertised treasury stock in this Arizona
company at cents a share. The public
was ready to invest Money began to
pour into his hands. He Immediately be-
gan the construction Of the Uncle Sam re-
hnery No. l at Cherryvale and kept up
4 the advertising of his treasury stock. He
suggested that the stock would go almost
Immediately to 10 cents, and he indicated
that he had offers of a larger price for
the stock.
AS Tucker acquired oil property he mag
nified the Importance of his holdings and
represented that the Uncle Sam company
was doing a large and profitable business.
AS a matter Of fact, the Uncle Sam COM
pany, according to H J. Bone, the United
states district attorney, was never profit
able from the moment OF its inception
Big PROFITS Promised.
Tucker in his advertisements from the
! very first represented that small sum
invested in treasury stock would In a
very short time make a profit of several
| hundred per cent. He also represented
that profitable dividends were being de-
clared and paid frequently. In each ad-
vertisement he exploited the fact taat the
| great state OF Kansas had passed an anti
discrimination law against the Standard
Oil company and that the state was MAX
ing a vigorous war against the OH trust
generally.
In the spring Of 1906 Tucker advertised
that on midnight on August IL the Unclo
Sam stock would be advanced from ~
| to 40 cents a share He also said that a
pipe line had been begun and announced
that dividend to be paid would send the
stock up from Is to 50 per cent.
In July, 1906, Tucker induced the same
persons who had incorporated the ArizonA
company, Mckinley. his father-in-law,
| fuckers wife and two clerks, to incor-
porate the Uncle Sam OIL company In
Kansas The capital was $4,000, with
shares at 81 each OF the 10000 shares $500
went to Tucker and the remainder to his
wife and Mckinley. Tucker, controlling
absolutely the Arizona Uncle Sam COM
pany, turned over all the property In
GLIDING the treasury stock. to the Kansas
company. It was a sort OF contract OF
4 lease for ninety-nine years. UP to the
time Of the organization Of the Kansas
company Tucker kept all the money on
deposit to his own credit After the or
ganization Of the Kansas company the
money that came in was credited to the
Uncle Sam company.
watering the stock.
All OF this time Tucker continued his
advertising and began the construction OF
the Atchison refinery, known Uncle
sam refinery No. He advertised that
on December 20. 1906. another dividend
would be paid. Instead however, Of pay
ing cash he issued checks, payable in l5l
DAYS after date. He then solicited the
stockholders to take more stock and Of
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