The evening world., 1920-09-24
ES2O,OOO,OOO
OIL STOCK FRAUD;
BROKERS INDICTED
President and Secretary of
Tuxpan Corporation Again
Are Accused.
CURB FIRMS INVOLVED.
Shares Worthless and Big
Contracts Mythical, Gov
ernment Charges.

Charging them with uslnk the mails
20 defraud and with conspiracy 80
to DO In making salos OF worthless
oil stock which yielded the vendors
moro than s2o.OOO.OOo. the United
States Grand Jury to-day indicted
the Tuxpon Star OIL Corporation.
Louis Roumagnac. It's President,
Francis Imandt. Its secretary. and
the members Of three curb brokerage
firms OF this city.
The brokers indicted arc: james
o'Brein, George T.. Brecn and Frank
}. Smith, all OF che arm OF James
o'Brien & Company. OF No. s5 Broad
Street; Alexander Low, Of Low
Brothers. OF No. a Broad street.
and $. S. Campbell and Nathan Nc.
Canrey, OF S. s. Campbell g. Com
pany. of-No. 20 Broad Street.
Upon the arralgnment OF tho de-
fendants. who entered tentative
pleas OF not guilty Judge Sheppard
held all the curb brokers, save Low.
in $4,000 bail each. Lows bail was
hXed at $500. Roumagnac, who is
now in France. Is under 335. 900 bail
on tho first indictment and Imandt
under $4,000 bail. The bail In zach
case was continued.
For two years Post Office Inspec-
tors .. b. williamson and II. B.
Mayhem have been at work on the
affairs Of the oil corporation and the
indictments were the result Of what
they allego they found in its busl-
ness methods.
The allegation OF the Government
as presented by United States As
sistant Attorney Simmons, is that
the defendants sold 2o,OOO.OOO shares
Of stock in the corporation at a par
value OF 81 a share, but that tho re-
ceipts we're even greater than this
as the stock was advanced to 8l.7b
a share at one time. The stock was
sold throughout the country TO thou
sands Of investors who, according 10
the Government, were lured by the
glowing accounts Of the company It's
promoters disseminated.
II Is alleged by the Government
that the TuXpan star Corporation
claimed 20 have producing proper
ties in Mexico, a number OF flowing
wells yielding up 20 10000 barrels OF
oil a day and a deal on by which a
well producing 100000 barrels % day
was to be acquired. This the Gov
ernment states 20 be false. Further
more, II Is alleged that the corpora
tion claimed assets OF tl34, 900, 900
with Sl,OOO.OOO In cash with which 70
develop its properties, which wore
valued at 100000. 900. This also the
Government claims 10 be false.
Another alleged claim Of the cor
poration which the Government says
is untruthful was the marketing OF
oil, with contracts to deliver OO,OOO,-
900 barrels in the coming eleven
years. and contracts with the Allied
Governments during the war
A year ago the Tuxpan star Cor
poration was indicted on a similar
charge, Roumagnac and Imandt also
being included, but the case did not
come mp, II was said to-day because
~ lack of evidence, At the time OF
this indictment, according 20 Govern
ment officials, toumagnuC. "A natural
ized citizen now jumped his bai bond
and went 90 France, his native Cuun-
/ try. He returned 20 this city and
gave himself up, asking that his for
| feiture be cancelled but this vas not
done.
Imandt, the secretary is said TO be
New York tailor,