The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1920-06-25
INDICT OIL FIRMS
ON FRAUD CHARGE
CONTINUED FROM rAog ONE.

'oNIlN Ibb FhDm IRbE pNb-
City and Boston. for alleged connec-
,ion with tho sale OF Ranger oil
stock. the promoter and his counsel
appeared at tho federal court to
answer the indictment. Bail was
fixed at $4,000.
-Four oil companies. 10 brokerage
houses and about 30 individuals
wero indicted by the federal grand
jury on IA charge OF using the mails
to defraud investors out OF millions
OF dollars
Federal agents in cities through
out the country are now engaged In
rounding up the men indicted. They
are charged with having made gross
misrepresenta regarding oil
properties ana with paying divi-
dends out OF money obtained from
the sale OF stock.
The companies involved are the
Ranger OIL company w. i. VIII
liams OIL company, Great Western
oil company.
The brokerage concerns indicted
were stickney. Rawlinson Il COL
colough OF Boston. and Curtis, Pack
er & Co. Unitod Securities company,
II. Kent Holmes n Co. IL. Morgan
Pollok 6 Co. Thompson, James n
Co, Crossman, sherman Il Co.,
George A. Lamb a Co. E. NJ. Full
Ter a. Co, and Greenhaum. Bigelow
s. Greenbaum. nearly all OF them
with headquarters In this city,
Some In Chicago.
Some OF the brokerage houses
had connections In Chicago and
other cities.
The first batch OF indictments
was returned after a long investiga-
tion conducted by special squad
OF postoffice inspectors under the
direction OF Assistant u. s, District
Attorneys Jerome simmons and
Henry r.. Kelly
individuals indicted comprise OF,
ficerS and directors Of the oil and
brokerage companies Pnd stock
salcsmen
While one Indictment mentions
exploitation OF tho Charles United
oil a Gas company, that company
which has properties In Kansas and
Oklahoma, is not named as a defend
ant
Postofflcc Inspector Howard II.
Mayhem. who with Inspectors Lair
chan, Schwab and Williamson gath
cred the evidence on which todays
indictments were based, explained
that three of the defendants here
accused OF promoting the sale OF
Crown oil stock wero recently In
dicted at Louisville, KY, FOR alleged
mail frauds in connection with an,
other oil company
Heavy Gain Made.
The indictment charging the RAN
ger oil company and others charges
that Curtis, Packer n company by
misreprosen sold to investors
at moro than one dollar a share, one
million shares, which they are said
TO have bought at zoe,
II is also charged that n broker
age firm OF which Ashley /. Hol-
brock was said TO he the president
and with which Louis c. Van Riper
Charles X. Morton an John l.. Nc
Lean were connected" represented
that new wells were being drilled
on the Ranger property when effort
to procure oil there had been ahan'
doncd.
The United securities company ot
which Van Ripper was said to be
president. Is charged with disposal
of SS00 900 worth Of Ranger stock,
In the indictment concerning dis
posal OF w = williams, O. l.. stock.
John l.. Koan, Thaddels NJ Rice
Edward S, Hinshnw J. W. Sanders,
W. c, Eyle and II NJ Shumato, said
TO be directors. were indicted with
Joseph II Byrd, alleged promoters
Of Lexington, Ky, ana II. Morgan
Pollock & company Thompson
James & company ana trussman,
sherman & company Of New York
and Sticknoy. RawlinSon n Colo
Tough of Roston
Tho indictment states that VIII
liams property was misreprescnted
as yielding 500 barrels Of OIL day,
while its total daily capacity was hut
10 barrels. 1t is charged that "diNi-
dends" totaling O,0O0 were paii
out OF 81 900 900 realized from dis
posal OF the stock 10 investors. Total
oil production OF the Williams prop
erty amounted TO only $4,000 worth,
II is charged concerning the Great
Western Petroleum corporation, tho
stock Of which was saidto have been
disposed 81 through George A. Lamb
n company, the Indictment chase
with misroprescntato the Grca'
Western company Lamb and SalcS-
men Samuel Forman, David Rothcu-
sizes, Joseph Schoenborger, samuel
Newhouse, Maurice NJ. Goldberg,
George DeUjfalussy, Victory Fuzzy,
II, T. Pyke. M, Klein. Charles Fried
berg and S. Gramburt