The New York herald., 1922-04-06
Firm Capitalized at $10,000,-
900 Among z Indicted for
Misuse of Mails.
RICH GUsHERs CLAIMED
Producing Holes Returning g
$500,000 a Year Said to
Have Drawn Investors.

Seven oil companies and six indi-.
viduals, including one woman, are un-
der indictment on charge of using
the mails to defraud. it became known
yesterday when scaled findings of
Federal Grand Jury were released on
TIE motion of Maxwell S. Mattuck,
Assistant United States Attorney.
The defendant companies are the
Century Consolidated Oil Company.
Delaware corporation with an author
lied capital of $10.000.00O: the Her
cules Oil Company, the Queen Oil
Company, the Ranger Oil Company.
the Shannon Oil Company and the
Acme Finance Corporation.
The individuals named in the in
dictment are Mrs. Cora Stetson Butler.
Mark S. Mathews and Bonewitz x.
Dawson OF New York city; Walter S.
Clarke of Boston, Ernest s. Phillips
of Kansas City, NO.. and Dixie l..
Peters of Los Angeles.
Woman Led Orga nization.
To carry on o gigantic stock selling
campaign. the Century Consolidated OH
Company was fo,ined as the result OF a
merger with five oil companies. accord
ing to Mr.. Mattuck. vino said that soon
after the consolidation two of the CON
Germs were petitioned into bankruptcy
The indictment explains that Mrs. But
Ter cnd Phillips. while on the executive
committee of the Century Consolidated
organized the Acme Finance Corpora
ton with the aid OF Peters, Clarke and
Dawson.
II IL charged that the promoters listed
Charles B. Manville. founder OF the H.
w. Johns Manville Company. with many
other prominent men as officials OF tie
Acme concern. AS a bonus in further
ance of the scheme 100000 shares of
the Century Company were 10 be divided
among the group of five in the Acme
Company.
The stock selling representations were
grossly deceptive. according TO evidence
presented to the Grand Jury by Mr.
Mattuck. the claim being made by the
promoters that the Century COMPANY
had taken over properties in proved ter
ritory with settled production OF 100
producing wells and fourteen more drill
ing. The indictment further explains
that the Century Consolidated had only
about half dozen wells under its con-
troll and three OF them were the property
OF the companies in the hands of re-
ceiN6rs.
Well Claims DecInr red False.
THE investigation" said Mr.. Mattuck.
showed that the oil properties claimed
to have been acquired in Kentucky and
Illinois with nincty-four wells producing
a profit of 100000 annually were not
owned by the Century Consolidated Oil
Company and the same condition applied
TO 10000 acres in other fields.
Some of the correspondence and lit
erature OF the Century company indi-
Gated that the registrar and transfer
agent was the National Security Com
pany OF 149 Broadway. Yet later the
Century Consolidated Oil Company con-
tended that the National Security Conn
rany was not authorized to issue any
OF It's stock. Stockholders in the various
companies included In the merger were
notified by the Century company that IL
would not recognize stock issued by the
National Security Company. with the re-
suit that the stock Of the Century com.
rsny was recalled and the stock in the
original companies reIssued to stock
fOiueTS. DuiiuB tutS peTlOu the property
Is said to have been neglected. as rentals
were not paid and liabilities fast piling
Up"
Edward A. Schwab until recently
rost office inspector and now special
INVESTIGATOR for the National Vigilance
Committee OF the Associated Advert sing
Clubs of the World, made the investiga-
ton which resulted In the mail fraud
indictment.
Some OF the Investors mentioned as
complainants in proceedings are James
McCoss of rs East Sixteth street. Man
haitian A. T.. II. Baker of 81 Lawrence
street, Brooklyn; Ernest kurd Arnold
OF Jersey City. Charles Larger OF Pas
sale, N. j.. and ten others scattered
throughout the country