New-York tribune., 1918-07-31
Editor Charges Associates
With Fraud in Oil Stock
Promotion
Harris Asks Receiver
Kicker Denies Magazine Is In
terested in Dixie-ken-
lucky Company

The announcement yesterday that
Postmaster Patten had barred the Au-
gust number of "Pearson's Magazine"
from the mails because of q story by
Guido Bruno, and the further an
nouncement by Allan W. Kicker. presi-
dent of the company. that there would
be no September number. were followed
by court proceedings yesterday in
which several allegations of fraud are
made against Mr.. Kicker and others in
connection with oil property promotion.
Frank Harris, editor OF the magazine
and vice-president or the corporation
publishing it. fled q petition asking
that receiver be appointed for the
company, demanded an accounting of
the company's assets and asked for an
injunction restraining Mr. Kicker,
Clara A Reed and other defendants
fears will be detrimental to the con-
Germ.
According to Mr. Harris, Mr.. Kicker
and Colonel j. A. Robertson. promoter
and largest stockholder of "Pearson's
Magazine" have circulated a famboy-
ant prospectus soliciting subscriptions
TO the Dixie-K Kentucky Oil Company,
which is represented as bonanza. In
furtherance of this stock selling cam
paign, Mr.. Harris says, the principal
defendant has used the mailing list OF
"Pearsons Magazine" besides the list
OF stockholders.
Office Force Used
TIE vice president of the magazine
company protests that "the glaring and
highly colored literature" contains nu-
merous misrepresentation and that
MIR. Kicker used the magazine Office and
the Office force for his oil promotion
in hours that should have been devoted
to editing and publishing the periodi-
cal. The proposed company is to have
a capital of $1,000,000.
Mr.. Kicker says in his circular he
could get money in Wall Street, but he
does not care to pay the bonus that the
blood 9uckers" would ask him.
MIR. Harris is proceeding in his own
behalf as stockholder and for other
holders of stock. He opened hostili-
ties by obtaining from Justice Finch
an order to show cause before Justice
Guy to-day why the defendants should
not be enjoned from electing new Off
GERS or from dlSSolVlng the corpora
tion. He complained that books of the
concern have been removed to the law
Office of Seabury, Massey G. Lowe, and
that he cannot obtain permission to
see the bylaws or have access to any
of the books.
Absolves Stockholders
Mr. Harris alleged that Mr.. Kicker
and other defendants have tried, by
common design or agreement, to de-
fraud and injure the magazine corpora
tion and stockholders. The capital
stock is $175,000. divided into 1880
shares at $40 each, and is widely dis
tributed.
AS to the Dixie Kentucky oil concern,
Mr. Harris alleged that Mr.. Kicker
made fraudulent and deceitful repre-
sentations' to the stockholders that
"Pearson's Magazine" was interested in
the oil proposition. The stockholders
said the plaintiff, are Ignorant of af-
fairs"
The oil property, Mr. Harris says
consists of IT'S acres near Erwin, KY
and is owned by q man who has beer
drafted into the army and who would
sell
Mr.. Harris asks to have Mr. Kicker
restrained from sending out any more
circulars. He says he turned down a
proposition made by Mr.. Picker to give
him 81 900 in per cent bonds and Il
bonus OF $4,000 in stock, all for the
bargain price, of 81 600