The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-13
P. A. NEWMAN Is
INDICTED AS OIL
WIRE FORGER
Broker Accused of Signing
Blacks Name to Range
burnett Telegram.
HE DENIES HE IS GUILTY
Woman CustOmerAlso Has
Him Seized in Suit to
Recover $3,097.

raul A. newman promoter and
broker. who has exercised his un-
doubted talent for money getting in
the financial district for at least four
teen years. was indicted, yesterday,
on a charge Of third degree forgery in
connection with his exploitation OF the
stock Of the Rangeburnett OIL Com
pany. II found guilty he can be sent
to prison for not more than five years.
He surrendered before Judge wad-
hams in General Sessions, pleaded
not guilty and was released in $4,000
bail. His lawyers. Isidor wasservogel
and Randolph Newman, have two
weeks in which to make any motions
they care to offer. .
Before going to the Criminal Courts
Building Newman was taken into GUS
tody in his ONCE in the Mills Building,
is Broad street, by deputy sheriffs
who had an order Of arrest obtained
by Emma Davour in a civil suit for
the recovery OF $3.Os76O.
Mrs. Davour says she entrusted sew
-erai thousand dollars to Newman
within the past year to be invested in
stocks. She complains that the stocks
were not delivered and that Newman
returned only $40 of her capital.
Newman gave q bond for $500 at the
sherifrs ONCE and went on with Mr..
wasservogel to present himself before
Judge Wadhams.
Raised Value Fkom ~ to se.
Paul A. Newman q Co.. which is New
mans corporate name. worked up a
market for Rangeburnett stock in April
| and May and raised the curb quotation
| as high as Sc q share. the par value
| being 81. Newman had bought 100000
| shares from the Rangsburnett Company
| for Is cents a share. On May 13, after
| advising the purchasers to pay for their
stock in full and hold on to It. Newman
| withdrew his support from the market.
which Is highbrow verbiage for what
Assistant District Attorney Dooling calls
pulling the plug" The price immedi-
ately sagged and is now occasionally
quoted at 81 to SO cents a share.
The merit OF Rangeburnett and 'ew-
mans Justification for advertising 1t as
| he did are not called into question In
the indictment returned yesterday. The
only legal accusation is that he forged.
! or caused to be forged, the name OF
| Harry ]. Black. secretary and treasurer
| of the Rangeburnett Company, as the
! signature OF a telegram sent to Marshall
| A. Freeman of Roanoke, Va. early In
| May. This telegram said the Range
burnett Company was about to acquire
the property Of another and much larger
| oil company, which has oil in actual
| production, and advised Freeman to buy
more stock.
On the strength OF this tho Virginian,
who had previously bought 200 shares
1 at a low price. got 1000 more at s6 a
share Black says he did not see or
authorize the sending Of the telegram.
which was a duplicate of messages re-
ceived by other stockholders at the same
time. Newman admits he sent the tele-
gram, but insists that Black o. KID It
"I have witnesses" Newman said after
his indictment. "to swear that Black not
only sanctioned the telegram but per-
sonally revised It before It was sent.
He made corrections with his own hand.
have hunted high and low in my Office
ffor the draft OF the telegram with his
marks on II. but have not found II.
This probably Is because the corrected
draft was given to a stenographer to
typewrite a clean copy and the original
must have been thrown away"
| The District Attorney says that the
property which the Rangeburnett Com
pany thought of buying was that OF the
Eastern OIL Company. that there really
was no such deal and that Newman
knew at the time the telegram was sent
that the purchase could not be made.
Newman, on the other hand, says he can
prove that Rangeburnett had a written
offer Of sale from Jose B. Delmass In
which Delmass laid claim to an option
| in writing on the Eastern OIL Company q
lands
| other Indictments Likely.
After Newman was indicted. Assistant
District Attorney Dooling said: '"rhe
| Rangeburnett story Is typical OF what
! is now and has for the past month or
| two prevailed in and around the fringe
| of Wall Street" He expects other In
dictments from the additional june
| Grand Jury.
The Ranseburnett company was or
ganixed In March last. with 1000, 600
shares OF 81 par value. To the presi-
dent, Frank B. Barnard. $4,000 shares
were Issued Tor MS leasehold drilling
rights in Archer county. Texas; 800, 600
were given to the company and 500, ,o00
| sold to Newman and another broker, who
were to market the stock.
by market manipulation and the use
| of brokers in and around the curb" says
DoolinE. "and the use OF their names In
connection with advertising all prepared
set up and paid for by Newman, the
--------------
Continued on Third Page