The sun., 1919-06-17
OIL BROKER SEIZED
ON FRAUD CHARGE
Howard B. Wood Arrested at
Home for Tar Island Com
pany Deals.
NETTED HIM $500, 900
Ousted by. Stockholders From
Treasurership About Three
Weeks Ago.
NETTED HIM 100000

Howard 3. Wood, a broker of III
Broadway, was arrested yesterday by
post once inspectors when leaving his
home in the Del Monte apartment house.
West 18th street. on charge OF using
the mails to defraud investors In an oil
company known as the Tar Island Pro
ducing and Refining Corporation United
States Commissioner Hitchcock held
him in 5000 bail, which n surety COM
pany furnished.
In the Federal Building It was esti-
mated that Wood had made about $780,
600 out of selling the stock. through
advertising and statesmen. The corpo-
ration has produced some oil. the value
of which Wood Is accused Of misrepre-
senting.
According to Government agents
Wood was formerly president Of the
United States Promotion House. Inc. in
boosting which II. Kent Holmes OF we
Boys fame promised profits OF 100
per cent. until the Post Office Depart
ment had him arrested in May last
year.
Tar Island. which is in Texas, was
developed originally by a British COM
pany and later taken over by a Louisiana
company in which DR.. f. York Ames of
Shreveport was active. The Tar Island
Producing and Refining Corporation was
capitalized with 100000 shares az par
value Of 81 a share. Wood was made
secretary. treasurer and promoter. He
had an option on 100000 shares at
10 cents a share, and according to the
Government agents he sold to the pub
lie about $4,000 at from so cents TO 81.
In his campaign. it IL charged. he
said that the corporation had one well
Yielding 100 barrels a day and another
tall tnor ha q
of pipe line facilities and OF marketing
the oil. and announced that the COM
pany was doing so well that on July
%, 1918. It would begin paying a divi-
dend of 1 per cent. month. Dividends
! of between $1,000 and $4,000 were ac-
tually paid. but not from the profits on
OIL The Government says wood paid
them from his own pocket TO effect
what is known among promoters as
! "popularizing the stock" Wood Is ac-
cbsed OF having reported that the direc-
tors had voted the dividend, whereas
DR.. Ames says they told Wood the COM
pany was in no position to do such a
thing.
The complaint. sworn TO by Oliver B.
Williamson. Post once inspector says
| the Tar Island corporation had a permit
| from the State OF Texas to sxploit a
tract OF go acres. on which there was
one oil well. and 80 day privileges TO
eNmine cnt!nuous area OF 500 acres
and that Wood frapdulently represented
that the corporation owned the tracts
and that there were two wells. both pro-
ducing. Wood is charged with making
false assertions and promises in order
to sell 100000 shares OF stock "at a
! price far in excess OF the true and res-
sonable value. 1t Is admitted that he
a
clatcs. '7f
J. D. Dunlop ana other stockholders
report that they ousted Wood from his
Office three weeks ago and are now re-
organizing the corporation. which they
believe has rights to a valuable prop
erty.
District Attorney Swami struck an
other interesting lead yesterday when
two nurses, Miss Ida Tompklns and Mrs.
Sarah Mcclellan. complained that they
had lost money through buying stock of
the Panuco and Gulf OIL COMPANY
which is not TO be confused with the
well known Panuco Oil Company Of
Mexican fame
The man who sold them the shares
| the nurses said. was Frank d. Ryan of
1852 Broadway Ryan is the man who
MAS arrested in New York last week on
the complaint OF William J. BisselI Of
the Baltimore banking and brokerage
firm of h. Warren Corxran & Co Bis
sell accuses Ryan of being in cahoots
with stranger calling himself Capt
Thomas w. Browne 10 the extent of
supplying Potts Canyon mining stock
in New York and rakins in S24,0 Tor
il. while Capt. Browne" claiming pos
session Of a hot tip from Washington.
got the Baltimore house to buy Potts
Canyon~and then disappeared.
Even more exciting than Ryan's dual
'ty OF interest in Potts Canyon mining
and Panuco and Gulf Oil is the fact
that, according to the signature on the
Panuco and Gulf certificates, the presi-
dent OF the company Is Thomas l.. Rey-
nolcs. This Is said rs Assistant District
Attorney Dooirg TO be the same Thomas
l.. Reynolds who invited a business man
! to his home in West SiNty-eiShth street
last year and spun roulette wheel
until the business man lost $4,000.
That il. Reynolds and the wheel said II
was lost, but the business mau departed
after thres ten!ng 10 call the police.
Later Reynolds was convictAd Of being
a common gambler. nned $3.50 and sent