The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-06-04
MANY ARE FLEECED
Stock in Fake Company Sold
/ to Hundreds in Washington
Before Officials Acted
POSTAL OFFICERS STEP IN
Arrest One Of Promoters
After Long Inquiry--Pris-
oner Ready to Confess

Special 10 tho World.
WASHINGTON. JuHe s.---with
the arrest here OF Harry Il. Thomas.
lt22 Irving street. northwest, on
complaint Of inspectors OF the post
office department., tho authorities
believe they have checked an alleged
fraudulent stock manipulation de-
scribed as OF giant proportions.
II is said United States senator
sunk 100000 In the scheme and
that Washington stockholders. large
and small, have suffered.
For seven months the postoffice
detectives Investigated before get-
ting warrants for Thomas. as secre-
tary OF a promotion concern with
headquarters here, and 0. r. Clif-
ford, Thomas father-in-law, who
has not been located. Thomas and
clifford arc charged with couspir-
acy to defraud in using the United
states mails.
"sold' u 100000 Concern.
The most remarkable feature OF
the affair In the alleged sale OF q
100000 local business concern by
the promoters. when they are said
never to have owned It.
The police say that Thomas and
clifford were instrumental in orr
ganizing n company known as the
Anderson Tire a. Rubber Co. and
that this firm later sold" the An
derson Tire Manufacturing COM
pany.
HundAds of thousands of circu-
lars bearing picture OF the tire
concerns manufacturing plant were
| printed, stating that II was the
Initial plant OF the Anderson Tirs
& Rubber Co.." the promoters COR
poration. and hundreds of thou
sands OF dollars worth OF stock was
peddled In Washington before the
postoffice officials began an investi.
cation.
Used senator Owens Name.
The promoters. Il is further re-
lated, acting In tho guise OF pur-
chasers OF the factory, owned prin-
cipally by Senttor Robert !. owen
OF Oklahoma. authority ON finance.
and James C. Anderson OF the Coch-
ran hotel, took prospective clients
to view the plant and brought them
back TO the Fifteenth street offices
and sold them stock.
Senator owens participation IN
the operations. aside from tho use
of his name as being one OF the own
ors and large stockholders, consists,
1t Is understood. In his Endorsement
OF 100000 worth OF notes for the
Anderson tire manufacturing con-
cern.
Two notes--one Tor $4,000 with
the District National bank, and one
for SIS, 900 with the Commercial Ma
tional bank--were indorsed by Sem
ator owen in Washington, and an
additional sum OF $4,000 was raised
lin Oklahoma state banks and banks
I'm Kansas City and st. Louis, II Is
said.
Following the sale" OF the Wash
ington factory the promoters began
n series OF organizations, 1t IL al
legged, having capital stock ranging
from 100000 up to one with $685.
900 shares having a possible stock
valuation OF s52.500,00O. all orga-
nized under the laws OF Delaware.
Scheme Widely Advertised.
Purpose OF these organizations, In
spcctors declare, was to furnish the
promoters plenty OF stock, which
they sold through local salesmen,
offering them from is to 80 per cent
commission on sales.
Advertisements we're inserted In
local papers in Washington. Baiti-
more, Philadelphia and New York.
CONTINUED ON PAGE NINETEEN