The sun., 1919-06-04
OIL 'SECRETARY'S'
TELEGRAM COSTLY
Virginian Says "Black" Wire
Led Him to Buy 1000
Shares at IS.
YESTERDAY 1T WAS 25 CTS.
DOoling Says He Will Have
Oil Fraud Evidence Ready
This Week.

A Virginian whose temper was even
hotten than the atmosphere OF Centre
street entered the District Attorneys Of
fce yesterday. laid a yellow telegram on
the official desk and unfolded q tale Of
how he was persuaded to buy stock Of
the Rangeburnett OIL Company.
His name Is Maxwell A. Freeman. He
said that BY May he was SO carried
away by the seductive advertising Of
Rangeburnett's charms that he bought
100 shares at 81 a share. A few days
later he received a telegram signed III.
J. Black, secretary Rangeburnett Oil
Company" The telegram set forth that
the Rangeburnett company was about to
acquire the rich properties or an I'M
named company. a close corporation,
whose stock was held mostly by two
New York families and which was a
great producer. The purchase would in
crease the value OF Rangehurnett tre-
portunity.
Buys 1000 Shares at %.
The Virginian lost no time in buying
1000 more Rangeburnett shares at the
new price, IS apiece. Thereafter he
watched the quoted price strike Sc and
then sag and sag until it hit ,112 on
Monday and rs cents yesterday. He
said he had been swindled and that he
wanted to make a complaint.
John T. Dooling. Assistant District At
torney. who with Assistant District At
torney Kilroe is managing the oil stock
Investigation, has not yet talked with H.
]. Black. but Is told that Black denies
having sent the telegram and suspects
that another person sent It in his name.
AS to the property on the strength of
whose proposed requirement the Range
burnett stock was jumped in price, Mr..
Dooling said he had learned 1t was the
Eastern OH Company. a real Oklahoma
producer. and that there were TO ne
gotiations for the purchase warranting
the assertions made In the telegram.
Frank B. Barnard. vice-presiden and
treasurer Of the Rangeburnett company
and its counsel. Loring NJ. Black, State
Senator. called on the District Attorney
yesterday to make q statement and an
swer questions. Barnard said that in
July last year he leased from the woman
owner In Texas the mineral rights in q
tract of land supposed to contain oil, gas
and sulphur. Barnard was to get on,
the minerals, and II paying production
was not obtained by July this year the
rights were to revert to the woman.
Barnard then formed the Rangebur-
nett OIL Company with a capitalization
Of !, 100000 shares at 81 par value each
The company got Paul 4. Newman &
Co. OF Is Broad street to act as pro-
moter. He took over 100000 shares al
is cents apiece and sold them for from
40 cents to IS. All the money the com
pany got was $4,000 from Newman for
the 900. 900 shares at is cents. OF this
Barnard said. $4,000 went for drilling
machinery, $4,000 was sent to Texas
! for running expenses on the ground and
the rest was spent on incidentals.
Down 500 Feet But No OIL.
Thus far one shaft Ia down 500 feet
and no oil. gas or sulphur has been
struck. The company must drill much
deeper. needs $4,000 for the work and
has only until July Is to do 1t unless
new arrangement Is made with the
owner.
Broker Newman, said Barnard, after
contracting for 100000 shares at Ii
cents wanted an option on 400, 900 more
at 26 and 81 cents. but the company
had him raise his offer TO 81. Barnard
said that Newman was to take up the
option on Monday. but did not do II.
J. I. Cramer OF Canton. Ohio. said
by the police to have been selling stock
OF the Record OIL and Refining Company
OF Texas was arrested yesterday BY
Detectives Doyle and O'Connell OF the
West Thirtieth street station on a
charge OF grand larceny. Mrs. Ada
Newburger. sc East Eighty-third street
says that on May IL she paid CrameI
5000 for 200 shares OF Record stock a,
81 a share and has been unable to ge,
either the certificates or her money
back. She says letters and telegram.
have been exchanged and that CrameI
has kept putting her Off.
Mr.. Dooling said yesterday that III
was getting together evidence of oil
stock frauds and hoped to have 1t ready
| for the Grand Jury this week.
| Senator Black. who as lawyer Wis
| tied Judge Swan with Vice Presiden
| Barnard of the Rlngeburnett Company
! was mistakenly called Republican II
! yesterdays SUN. He Is Democrat ant
J in the last session OF the Legislator,
tried hard to put through blue sky
| law such as some other States have I,
| protect the public against fly by nigh
corporations and brokers.
ACK LJTCHED TAV IN