The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-05
'DOOLING TO ASK q
oil INDICTMENTS
Will Begin Presenting His
Evidence to Grand Jury
To-day.
QUIzZES BROKER NEWMAN
Latter Admits Sending Tele-
gram Which Block Denies
o. King in Advance.

Sonit H ooollnB, ASSISTANT District At
torney. who is investigating oil stock
transactions, said yesterday that he had
evidence in hand on the strength Of
which he would ask the Grand Jury to
return at least two indictments. He ex-
poets to begin presenting the evidence
to-day.
Subpnnas are ready for process serv-
ers and the inquiry behind closed doors
Will go on for some time. The District
Attorney believes that several sections
OF the criminal code have been violated.
including those prescribing penalties for
misleading advertising ana obtaining
money under false pretenses.
Mr.. Dooling passed most Of yesterday
afternoon with Harry ]. Black, secre-
tary-treasurer Of the Rangeburnett on
Company. and Paul A. Newman, the
| broker Of IL Broad street who doomed
Rangeburnett stock. They were ques-
toned especially about a telegram
| signed in Blacks name and received in
May by Maxwell A. Freeman of Nor
folk. Va. 1t said that Rangeburnett was
| about to acquire q great producing prop
erty. Freeman was so impressed that
he bought 1000 shares OF Rangeburnett
| at IS a share.
Dooling says he Is informed that the
property which the sender of the tele-
gram had in mind was that of the East
ern Oil Company of Oklahoma, and that
the Rangeburnett company had no op-
ton or contract to buy It. although the
Eastern company had offered to sell for
cash.
Newman Authorized Telegram.
Broker Newman, who went voluntarily
30 the District Attorneys office, admitted
that he authorized tho sending of the
Freeman telegram with Blacks name at
| the end. He said the Same message had
been sent to virtually all the Range
burnett stockholders OF record and that
| 1t had been o. KID in advance by Secre-
tary Black. This Black denied in Dool-
ing's presence. Black said he had never
sanctioned the use of his signature In
| any telegram sent to any stakeholder.
Regarding the Eastern OIL Company
Newman said that he relied on the as
| mass had an option which would be
| transferred to the Rangeburnett COM
pany.
Dissension between the Rangeburnett
! officers and their stock promoter was
| indicated in verbal passages between
Newman and Black Newman said that
he himself had named two Of the Of
| ficers and that they had not carried out
all of their agreements. He said, &C
cording to Dooling, that he had misgiv-
ings at the start N to the ability of
the company to complete its drilling by
| July is. when the Texas lease condi-
tionally expires. but was finally per-
| suaded to take hold OF the stock, which
he still thinks represents a valuable
| property.
| Newman said that he took over $780,.
600 shares at 10 cents n share and sold
1t for whatever 1t would bring. II
| went as high as IS, but the broker IN
sisted that he disposed OF only abou,
10000 shares ut an average price above
par-how much above par he didn't say
He told Dooling that he boosted tn,
| stocks of all sorts OF lawful ways, in
Guiding advertising. which he supposed
because of what the officers OF the com
pany had told him. to be truthful. ant
| which he still thinks was not deceptive
He said ne made little or no profit, a,
advertising was costly. He accused GER
tain officers of the company of tryint
| to seize and sell stock that didn't belonf
to them and told OF an injunction sui
which he has started in the Suprem,
Court.
Harry Black. secretary and treasurer
OF the company, left with the Distric'
Attorney an advertisement which h,
prepared for insertion in an evening
| mt xxyhin oh he
stopped by threats from a lawyer repre-
senting Newman. It was dated May 2:
and addressed to the Rangeburnet
stockholders. In IL Black assured tn,
stockholders that tho directors of tn,
company "are in no way responsible fol
tho violent fluctuations which have oc
CURED in the market value Of Range
burnett during the last few days, anC
that the market value Of the stock will
have no bearings on the operations o
the company" The advertising cop,
continued;
AT the formation of the company, II
order to provide funds for the completion
OF the first three wells. a contract-wa!
entered into between the Rangeburnet
Oh Company and Paul A Newman 4
Co. of Is Broad street for the purchas 8,
of 100000 shares at the price of Is cent,
net to the company. It being calculated
this sum would be SUFFICIENT to bring II
the three wells.
Says Requests Were Ignored.
THE tremendous upward trend of tn
stock and the hambuoyant advertisinl
and statements issued In connection witt
the marketing of the stock were We've,
with disfavor by the officials of tn
company. and letters were sent to New
man & Co. requesting them to publish
no Advertisements without securing tn
approval OF the company and to ais
endeavor to keep the market value O
! the stock to the lowest possible level, a
the company was yet purely speculative
} and did not warrant such prices as wer
being quoted on the curb. These re
! quests were ignored"
| Newman said he regarded such
: statement as vindictive and not in accor,
!. with the facts. AS evidence that hi
} brokerage operations had profited specu
lators in Rangeburnett stock he CAV
Dooiing a list OF customers Who hat
bought at low prices and sold when tn
stock went up. One OF them mad
1854.
The District Attorney is anxious I,
have a talk with Walter ]. Pierce o
Walter J. Pierce & Co. of so Broa,
street. who advertised in May under tn
heading 'Rangeburnett." Those VIII
needed our advice made enormous profits
some as much as 5.70O per cent. Il
seven weeks We now predict a furthe
advance to very much higher prices
Pierce left New York on Sunday, wa
in st. Louis on Monday and is now sup
posed TO be In Houston. Tex.
From an agent in Texas the Distric
| Attorney recefyed yestardav this tala