Omaha daily bee., 1907-04-27
. dIvidend oheelts ln -

fered 70 take the dividend checks IN pari
payment.
In the meanwhile he had constructed q
three-inch pipe line $50 miles long from
Cherryvsle 30 the Missouri river. He adj
vertlsed that he had completed arrange
ments for oil barges 20 be foated down
the Missouri river 20 st. Louis. where a re-
hnery was TO be constructed. The refined
oil was 70 be sent TO New orleans for ex-
portauon to Bergen, where he said he had
a branch. Instead Of advancing the price
OF stock he increased the capital stock
OF the Uncle Sam oil company TO 100000
shares.
As matter OF fact, according to the
United States district attorney. there was
no increase in the capital stock, but Tucker
went on issuing treasury stock until there
were 100000 shares outstanding. None Of
the advertisements disclosed the arrange
ments between the Arizona and the Kansas
company. In fact the affairs OF the Kan
sas and the Arizona company were 80 in-f
tertwined that it is almost impossible to
tell at this time whether this issuance OF
OF treasury stock was OF the Kansas or Of
the Arizona company
Tucker in his circulars and newspaper
advertisements declared that no bonds
would be issued by the Uncle Sam COM
pany. but II Is contended that within sixty
days after this advertisement he was
offering a bond issue Of 100000 Tucker
stated in his bond ofrer that he had
tangible property amounting to slSOOOOOO
consisting of the Cherryvale and Atchison
.reineries, a refinery at Tulsa. I. T. under
construction. a pipeline OF 40 miles, and
LOO acres OF OIL land in the Indian ter
ritory. He said that he needed the money
gallon oil tanks for storage purposes He
wished to store 100000 barrels of oil that
he advertised to be purchased at SO cents
a barrel, representing that within a year
this oil would be worth from s. to 50 a
barrel
ScOOped in Millions.
| It is estimated that Tucker collected
from his sales Of 100000 shares Of treas.
ury stock 81, 10000 OF this amount $345,O 900
! went for advertising The United States
! district attorney says that he operated
his plans at an expense OF $3.50 and his
total income from the sale of oil was only
| $4,000. In the two years that he had been
In business II is contended that he had
| paid only one dividend in cash That
| amounted to $4,000 This dividend was
paid out of remttances for osubscrip-
tions of stock, as the company has never
made any money, according to the district
| attorney.
During all the time that he has been In
business, the district attorney says that
Tucker has never sold one dollars worth
OF the preferred or voting stock of either
the Kansas or the Arizona company.
II the charges made by the United states
district attorney are upheld the operations
| of Tucker are remarkable even in this age
of quick-rich concerns. This man sold
treasury stock TO the amount Of g. 100000,
more than half Of which according to the
district attorney, has been clear profit. His
stockholders came from all over the
United States. So far as can be. estimated
there we're fully 10000 men and women
from New York to California who an
swered fuckers advertisement, all of them
sending money in the hopes Of their in
vestments paying them fabulous dividends
The contention is made by the federal
authorities that the Uncle Sam company
made no money, but that Tucker failed
to tell his credulous stockholders and
held before them promises of splendid re-
turns
Tucker played upon the prejudioes OF
the people against the Standard Oil COM
pany and to those in the east he called at
tention to the successful fight the state Of
Kansas was making against the great OIL
trust.