The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-18
NEW PLAN TO HALT
OIL STOCK CROOKS

Curb Quotation Publishers
Agree to Verify Claims
of Companies.
District Attorney Swami believes he
has gone far toward ending the sway
o. swindling oil and other stock COM
pahies by persuading the publishers of
curb quotation, sheets-to censor their
lists and cease reporting prices of SEEM
inEly worthless securities
John T. Dooing. assistant District At
torney. has had several talks with Henry
p, Gibson OF the Curb Quotation Com
pany, which publishes a daily record of
transactions and prices on the curb
known as the white Sheet" and with
Frank Bennett OF the Bennett Press.
which gets. out a similar publication
called the blue Sheet" Many brokers
and promoters have told Mr.. Dooling
that almost any stock. regardless OF. its
worth and character of its sponsorage,
could find place on these sheets by
payment OF $50. Last week Mr.. Dooling
had occasion to quote a section of the
Penal Law relating to the publication
Affecting the value of stocks. Yesterday
he said:
THE District Attorney suggested to
Messrs. Gibson and Bennett that in the
c1 sc of each stock offered for quotation
they obtain from its sponsors definite
ir formation regarding the assets, liabili-
ties. production, location. earnings and
profits; whether the Offering was of
treasury and promotion stock and what
90
II the stock company as distinguished
from the promoter or broker. The pub
fishers have accepted this suggestion.
They have come to the view that no
legitimate promoter or company would
refuse to give this information and they
believe they can get it They have
agreed to strike from their sheets the
stocks concerning which information is
refused When the sheets are thus
purged OF questionable quotations we
believe their value will be increased to
the publishers as well as to tho public"
No Market for the Stock.
complainant in a new case who Wis
tied the District Attorney yesterday said
that he bought stock of a certain Texas
oil company a few weeks ago at a low
price. and upon trying to sell when the
quotation jumped to $40 was told by
it The quotation is still around $50
This stock was introduced to the curb
a few weeks ago. The District Attorney
finds that the leases to the property
from which huge earnings are expected
cost only $500.
The company gave a New York pro-
moter an option on 5000 shares which
he has been selling to the public. The
company is supposed to have received
from him s12,500 for the first 5000
shares at $3.50 a share. but on June G.
according to Mr.. Dooling. it had a bank
balance OF only $14S. He wired to sew
eral persons in Texas. who replied they
had never heard OF This Company. Yes
terday he received this telse ram from
the Mayor of the town near which the
we'll Is situated:
do not know anything about the
- Company. However. some
parties. We cannot find who, have
erected one derrick q mile south OF here.
1t blew down. They erected another. Put
up three houses for workmen. Put an
| old boiler in and drilled twenty-five feet
| to keep the lease. They claim the boiler
| was no good and ordered another. 1t
came June IL. Report is this boiler Is
no good. Drillers are on the ground.
| Have put in concrete slush pit and state
| they are going to put in pump to pump
| water from river. They offer no stock
| for sale here"
A middle aged woman from the upper
East Side has asked the District At
torney II he can help her retrieve saw
| ings which she invested In stock OF the
ST. Nicholas Zinc Company two years
ago. 1t had a mine at Summitv!lle.
| Sullivan county. New York. of which
| wonders were expected. The certificate
/ hut VI al "a
| transferable prior to February 20. 1917"
so while the stock selling campign was
at ITS height and the price advanced she
was unable to sell.
'Dividends" in New stock.
| Then when this period of prohibition
| expired she received dividends in the
form of another sheet of engraved paper
which entitled her to possess $50 shares
OF the st. Nicholas Zinc Extension Com
pany when that company should be in
corporated. The name OF Walter ].
Pierce is given as that of the president
of the zinc company and that of Charles
d. Famhof as secretary. Pierce is one
OF the brokers who helped Paul A. New
man TO sell Rangeburnett oil stock. He
is absent just now. but Famhof was in
the Pierce Office when the District At
| torney's men called last week 10 inquire
about Rangeburnett.
Mr. Dooling also held conversation
yesterday with Benjamin Eisler, attor-
ney for the Countess Olga de Stan
tichowski who is at the Biltmore and
does not feel we'll enough to visit Mr.
Dooling and tell OF her part in booming
Rangeburnett oil stock. Mr.. Eisler said
that the Countess was persuaded by
Paul Newman that II was a great buy
and that she and her friends investe
heavily in the expectation Of large
profits. The Countess has in the pas
befriended a good many policemen. She
lived until recently in an excellent
boarding house on Riverside Drive.
Several policemen OF the West Sixty,
eighth street station say that when she
confided to them the secret OF Range
burnett they bought every dollars worth
they could. having in mind certain in
spectors OF the past who made fortunes
out Of stock market tips impaired by In,
fluential friends. Some of the patrol
men thought so we'll OF the tip or
Rangeburnett that they borrowed from
the Morris Plan Company to buy the
stock.
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