The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-06
100000 FAKE OIL
CLEANUP IN A WEEK
Broker Who Gulled Many on
Worthless Stock Is Under &.
Dooling's Scrutiny.
MORE LURES UNEARTHED
Cook and Waiter Report In
vesting Hard Earned Tips
With No Returns.

The name of broker who Is said to
have made 100000 within the last
week on the sale OF worthless oil stocks
was given to John T. Dooling. Assistant
District Attorney, after the Grand Jury
had spent several busy hours yesterday
Investigating certain fake promoters.
This broker. whose doings will be
torney's Office. is operating an once on
Broad street and contends he has
branches in other cities. He has a Grim
inal record in Western city and has
been accused OF dishonesty here on sew
eral occasions, yet 1t Is said that his
advertisements have lured an enormous
number of inexperienced investors into
his clutches, and that he is now doing
a rushing business in poor securities.
The Grand Jury inquiry conducted by
Mr.. Dooling Is expected to end to-day.
when two or more brokers will probably
DO indicted. The District Attorneys Of
Ace will then direct its attack against
others accused Of fraudulent practices.
Mr.. Dooling said It appeared to him
that Section e62 OF the Penal Code was
applicable to some of the cases under
investigation.
Felony for False Advertising.
This section covers the making OF
false statements in Advertisements for
the sale OF securities, making the Of
tense felony punishable by not more
than three years imprisonment and not
more than $4,000 fine, or both. If sew
IT, I'm
are mentioned in indictments brought
against brokers they may be sentenced
separately on each count II convicted.
Mr.. Dooling questioned many persons
in his private office yesterday. among
them Clarence Rice of the Andrew Cone
General Advertising Agency. which
handled a great mass of advertising
matter for Paul A. Newman of 10
Broad street, broker for the stock of
the Rangeburnett Oil Company. In
four to five weeks time. Mr.. Rice said,
his concern handled $4,000 worth of
advertising for Newman; all of which
related to Rangeburnett stocks.
The District Attorneys office is par
ticularly interested in representations
reported to have been made by Newman
that the Rangeburnett Oil Company had
acquired an option on the property OF
the Eastern Oil Company of Oklahoma.
of the Guaranty Trust Company and
director OF the Eastern Oil Company.
told Mr.. Dooling he knew nothing about
such an option.
Newman's assertion Wednesday that
he had relied upon the word of Jesse
p Delmass, another promoter. that he
held an option on the Eastern Oil Com
pany property which he would transfer
to tho Rangeburnett was refuted by
Mr.. Delmass. a.. 49,
This promoter told Mr.. Dooling that
d he had made 1t plain that he had no
option on the Eastern Oil Company
properties, but that nevertheless New
man caused an advertisement to be in
sorted in an evening newspaper on May
~ declaring that Rangeburnett was
about to acquire valuable oil producing
properties of another company.
Option Didn't Seem to Matter.
When he told Newman that the ad-
vertisement was misleading, Delmass
said Newman replied that he "didn't
care II they ever got any option: he
would run the advertisement anyway
All OF this testimony, taken in the
presence of stenographers in Mr.. Doc.
ling's office, was supplementary to state
ments made on Wednesday to the effect
that Newman had acquired 0,00t
shares of Rangeburnett stock at II
cents a share, selling half of 1t a
prices ranging as high as Sc a share