The Monmouth inquirer. [volume] (Freehold, N.J.) 1865-1933, 1923-04-05
TO END HUGE OIL
STOCK SWINDLES
Speed Mail Fraud Prosecutions
in Drive to Stop Flow of Pub
lies Money in Schemes.
ATTY.-GEN. TAKES ACTION
United States Starts Campaign to End
100000 Day Oil Stock swindles.
Wants Cases Pressed-Liter-
ature Floods Mails.

Washington. - Assistant Attorney
General Seymour announced that the
Government has begun campaign to
protect the American people against
oil stock swindlers and other stock
promoters, who are said to have
reaped a harvest of hundreds of mil
lions of dollars in the last three years
and to be still taking from the people
something like 100000 day through
the sale of fake stock securities.
The center of Government activities
at present is in the Texas oil fields,
where most of these companies have
their headquarters.
United States attorneys in New
York and other cities probably will be
called into the cases later to aid the
campaign.
John W. Grim, assistant attorney
general, has gone to Fort Worth, Tex,
the center Of the big oil promotion
schemes which started right after the
war in 1918, to expedite the trials of
alleged oil stock swindlers The
charges are based on the allegation
that the promoters have been using
the mails to defraud the public and
nave resorted to a countrywide adver-
>tising campaign in newspapers to sell
their worthless stock.
The charges have been worked up
by the Post Office Department, which
has been gathering evidence and in
vestigating the claims of the oil pro-
moters for the last two years. 1t is
charged by Government investigators
that following the big oil boom in
Texas oil fields in 1918 scores of fly
by-night oil ompanies were organized
with the purchase of 100 acres or so
of land and that, through glowing adj
vertisements, the promoters have OBJ.
tanned hundreds of millions of dollars
from the gullible public. Government
officials say that most OF the stock Is
not worth the paper it is printed on.
Even several members of Congress
were victims Of the aluring advertise
ments, and some turned to the Post
Office Department for retribution.
The Department OF Justice is try
ing to make arrangements in Texas
to bring about speedier prosecution
of oil stock and mail order swindlers.
"The cases are not being brought to
trial rapidly enough" Mr.. Seymour
said. They have needed extra judges
down there for a long time, so Mr..
Grim went to Fort Worth to see if ar
engagements could be made to bring
about quicker convictions.
There seems to have been a ire
mendous number of mail fraud
schemes lately not only in Fort Worth
but all through the country The
people of the United States are being
swindled to the extent of 100000 a
day. We want to push the cases
where arrests have been made to trial
and conviction as rapidly as possible.
David v. Cahill, assistant United
States attorney in New York for the
last few years, also was appointed
special attorney to serve in Texas to
help the prosecution of mail stock
swindlers. 1t was thought his great
experience in New York city particu-
larly qualified him for the job"
Mr.. Seymour said the stock swindle
and mail order cases are handled by
inspectors for the Post Office Depart
ment, who later turn them over to the
Department of Justice when prosecu-
ton seems warranted
1.-THE post office inspectors are very
efficient" said Mr.. Seymour, "as I
know from the cases accommodating
on my desk. They have been very
active the last two years"
Officials of the Post Office Depart
ment say that millions of pieces of
literature promising large financial re-
turns from small investments are sent
out from Fort Worth, and nearby re-
gions, to all parts of the country. The
returns from this fake" advertising
have been amazing to United States
officials. Persons with small holdings
Of Liberty Bonds or other savings ac-
counts have been the principal vic
Tins of the promoters.