The Birmingham age-herald., 1922-09-24
CITATION ISSUED CHARGING r FALS|TY
 TOO|L COMPANY
Officers of Corporation Which Has Sold $500, 900 Worth of Shares in Alabama
 Faces Inquiry
By FRED H. GoRMLEY Montgomery Bureau, Tho Age-Herald, 221-2 First National Bank BuiIdiui

221-2 First National Bank Building
 Montgomery, September 23.-(Spe- cial.1-FollCwing the filing of a formal complaint alleging that the Mid-Texas Petroleum corporation made false statements and permitted Q forgery in it's application for per mission to dispose of oil stock in Alabama, the state securities com mission today cited the corporation and all officers of the corporation to appear at the capitol at 10 o'clock October 27 for a general in quiry into the affairs of the cor poration.
 The complaint was filed with the commission by F. R. Aufhammer. former field and production superin- tendent of the corporation and now secretary of the stockholders pro- tective committee of the Mid-Texas Petroleum corporation. With the filing of the complaint and the cita- tion of the corporation and Its of- ficers to appear for a general inves- tigation, 1t became known that Will liam c. Oates, executive officer or the state securities commission. has been making an investigation of the affairs of the corporation for 1b months and that, in this investiga- ton, he has had the assistance Of the stockholders protective commit tee, which was organized by the stockholders of the corporation.
 The investigation will cause gen. eral interest throughout Alabama as a large number of shares of stock of the corporation have been sold in Alabama. About 300 shares are held in Birmingham, 150 in Montgomery 4.. HN1. n state securities commission indicate that the total holdings in Alabama will be about s300.000.
 AIlege False Statement
 The citation of the corporation be- came public property today when returns on the citation were re- ceived from the principal officers, who were commanded to appear in Montgomery for the investigation. Under Section Il of the state securi- ties act, the securities commission is given authority to make the in- vestigation under the protection or powers given to courts and to make findings of the fact which must be accepted as prima facia evidence in all courts, both civil and criminal. It is under this section of the securities act that the complaint was filed by Mir. Aufhammer.
 Article five of the complaint or Mir. Aufhammer, which alleged that the corporation made false state ments regarding material matters follows: That in and about the procuring of the said permits to so offer for sale and sell the said stock of the said corporation, the said defendants herein, knowingly
 fn ma0a or filed with said commission or the lawful officer thereof statements, documents, circulars, advertisements, or prospectuses, required to be filed by the laws of Alabama, which said statements, documents. circulars, ad- yertisements, or prospectuses were and are false in material respects or matters and said permit was issued in reliance upon the alleged truth and good faith of same.'
 Among other allegations, MT. Auf- hammer declared that the corpora tion and the defendants mentioned in the complaint falsely stated that tho corporation owned the oil pro- duction mentioned in the petition for permit to sell stock; that the cer- poration falsely stated that 1t owned the legal title to the leases men toned in the petition; and that:
 "By reason of the foregoing ana of the violation by the said defeno- ants of the letter and spirit or tne said act to prevent frauds and nm positicns upon the people or tne state of Alabama and to protect ln- yestors thereof, the said defendants were enabled to and did commit frauds and imposltions upon the ueople of this state and the investors therein were not protected and the said defendants sold to this com plainant and to divers and sundry other residents of the state of Ala bama the said speculative securities for the sale cf which the said permit was so obtained and also other ana additional securities of the said cor poration, which were and are or no substantial value whatever, all to the great loss and damage of tNs ctm- nlainant and of other people of the state of Alabama. wherefore this coma plaint is made and filed as author ized by law
 Individuals Mentioned
 Parties who were made defendants in the bill Of complaint. in addl- tion to the corporation, are: w. v Galloway, president; Of Burnett Texas; T. E. Hammond. vice-presl- dent, of Burnett, Texas; E. T. Stubbs, vice-p-esident. of Johnson City, Texas; Porter E. Glenn, vice. president, treasurer and general manager, Of Fort Worth, Texas; J, c. Roberts, vice-president, of Fort Worth, Texas; R. L. Springle, secre- tary. of Fort Worth, Texas; F. H. Hammond, director, Burnett, Texas; . Fl Ramsower director, Burnett, Texas: o. B. Zimmerman, director, his successful record of achievement L. x,ui,lic affica will reach it's climax