The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-14
RANGEBURNETT OIL
BOOSTER BANKRUPT
Three Creditors File Involun-
tary Petition Against Paul
ID. Newman and Partner.
CURB CLEANUP NEARER
Assistant District Attorney
Opens Another Page in Law
Book as Warning.

Paul A. Newman. who only q few days
ago was the master OF Rangeburnett Oh
and engaged in q stock selling campaign
30 spirited that he had forty clerks
handling the mail. was thrown into
bankruptcy yesterday by three creditors,
This 10 q sequel 10 Newman's indict-
ment on Thursday on q charge Of for
gerry and his arrest In a civil suit at the
behest Of a woman who says he owes
her ss,os7.5o on the score OF undelivered
stocks.
The petition is filed against Paul A..
and Florine Newman as individuals and
as partners in the brokerage firm OF
Paul A. Newman q Co. Is Broad street.
by N. Howard Pinto, lawyer Of Rec
tor street Mr.. Pinto said: ''One Of my
clients went to the Newman once and
tried to get money that was due him.
The arm had sold his stock, but he was
unable to get the money for IL. de-
cided to take no chances and dled q Pc
ution in bankruptcy"
The petitioning creditors are George
Cloke. who claims $500: Robert e.
Lange. s60a and Edward ]. Herman,
sT7S. They allege that Newman q Co.
have been insolvent within four
months" and are now. and while In this
condition transferred money to various
preferred creditors This was done, the
petitioners say. with intent to hinder.
delay and defraud their creditors and
with the intent and purpose of giving
preference. contrary to the provisions
OF the bankruptcy act"
Potts Canyon Under Inquiry.
Leaving Rangeburnett for the present.
District Attorney Swami began yesterday
to collect information regarding the
manner in which stock selling enter
prises Of extremely speculative value
get their prices quoted on the curb. He
was especially interested in Potts Can
yon mining stock. which figured In the
curb quotations for less than two weeks,
which was plenty long enough for those
who were boosting II to make q big
cleanap.
Assistant District Attorney DoolinR
learned that two publishing companies
issue daily curb quotations, and that by
payment OF $50 nearly any company or
promoter can get a stock into their
sheets without Investigation One Of
these publishers did not quote Potts
Canyon and the other did. Mr.. Dooling
opened the volume containing the penal
law and read Section e52:
ANY person who with intent to de-
ceive makes, issues or publishes or
causes to be made, issued or published
any statement or advertisement as to the
value or as to facts affecting the value
OF stocks bonds or other evidences Of
debt OF q corporation or who
knows or has reasonable ground to be-
lieve that any material representation.
prediction or promise made in such
sta cement or advertisement Ii false IS
guilty OF a felony punishable by q IRE
OF not more than $4,000 or by imprison-
ment for not more than three years CT
by both"
Il hope you can publish this" Mr..
Dooling said to newspaper men. 81
think the effect will be salutary."
yesterday Photographs Identified.
He asked John V. Dunno, chairman
of the welfare committee OF the Curb
Market Association, and Franklin Leon
ard. Jr., the associations counsel, to see
II thsy could not PERSUADE the pub
fishers OF the quotation lists to obtain
complete Information about all stock
offered for quotation. to strike Off the
bad ones and to see that quotations are
accurate.
From Baltimore the District Attorney
learned that William J. Bisseil, partner
ran q Co., had identified a photograph
OF W. w. yesterday as that OF a man
who visited his ONCE with Capt
Thomas w. Browne" who got Corkran
a Co. TO buy and pay for $4,000 worth
OF Potts Canyon stock last week and
! then disappeared. while Frank d. Ryar
of ]. NJ. Grant a Co., brokers of 1855
Broadway. the Potts Canyon promot-
ers, was selling the stock on the curl
| and, It Is charged, collecting the money
that came through from Baltimore.
yesterday long mas been a stock pro-
moter in New York under various firn
names. including that of yesterday q Co
and J. NJ. McVey q Co. Ryan, according
| to Mr.. Dooling, was formerly with Eas
! terday & Co. yesterday was indicted
| In this county in February last ant
again in March. charged with attempt
| ing to swindle the Chatham and Phenix
| Bank by drawing checks against a
worthless draft made out by J. NJ. Nc
| vey & Co. He was released In $4,000
bail pending trial He was arrested ir
the basement of the PittsburE Athletic
Clubs house on February is, following
| an automobile chase in which the pur
suers were Pinkerton detectives.
In December. 1916. a man giving tn,
| name OF Charles Kloppmeyer appeare,
| In Chicago and put in large buying or
ders for West End OH and Gas stock
| Chicago brokers bought It at 80 cents t,
81 a share. Then Kloppmeyer vanishe,
and instantly the stock fell to IS cents
! II developed that the only visible tuppl,
at the time of the Chicago adventur,
came from yesterday & Co.