The Birmingham age-herald., 1923-10-03
IF
 BLUE SKY LAW
 TOBE ECHARGED.
Officers Of Walker ConsoIi-
 dated Petroleum And Pres-
 ton Motors Corporation Un- der Scrutiny Of Grand Jury
ACTION EXPECTED WHEN REPORT MADE WEDNESDAY
William C. Oates Of Alabama Securities Commission Said To Have Worked Up Evi-
 denCe Against Companies

Investigation of stock sales by the Walker Consolidated Petroleum com pany of Dallas. Tex, and the Preston Motors Corporation of Birmingham by the state securities commission over period of nearly two years and by the Jefferson county grand jury for two weeks, will culminate Wednesday in the returning of in- dictments against officers of both Many Alabama citizens were victims of the Walker company, it is known. residents alone invest The Preston company has been in bankruptcy since last spring. Stock to several million dollars was sold in Birmingham, Alabama and adjoining states.
 Officers of the Walker company were indicted by a federal grand jury several weeks ago on similar charges. It is reported that indict- ments will be returned by the county grand jury when it reports at ? o'clock Wednesday morning for final . discharge against A. W. Walker of Dallas, Tex, president; Harold W. Walker of Dallas, Hudmon Hopson of Birmingham and D. s. Mena sco of Indianapolis. Two indictments will be returned against each man. one on 22 and the other on about 25 counts, 1t is rumored, charging illegal sale or offering for sale of stock of the Walker company, the HaynesVille (TeXas) Oil Syndicate and the Lewis oil Corporation of Dallas, and filing false reports regarding these com paines
 Officers Of Preston Company.
 Federal investigation of the Pres ton corporation has been reported as being contemplated for some time. Officers of this concern who are ex- pected to be indicted by the out go- ing grand jury are Ross A. Skinner president; James T. Driver, sales manager, and Preston Orr. secretary treasurer. II is reported that two in- dictmepts will be returned against each of these men. 14 counts charg- ing Illegal sale and offering for sale of stock of the corporation and one count charging false statements in quarterly reports to the securities 
 In plain terms, all those who are expected to face criminal action as the result of their operations in Jeff erson county are charged with viola tion of provisions of the state blue sky law"
 Bond In Federal Court.
 Officers of the Walker companv have made bond for their appearance at the March term of federal court. Action by the Jefferson county grand Jury IS expected to bring the matter to head much earlier, though the indictments reported to have been returned and setting of the cases for trial. Total alleged Illegal operations of this concern in the south are said to involve nearly S4,000,0 000.
 Difficulties of the Preston corpora tion have been known in business circles for several years Since the beginning shortly after tbe close of the World war, it's finances are said to have been dependent upon stock sales. Model plants were erected in North Birmingham and on the Vanderbilt road, where medium priced automobile called the Premo- bers.
 File Petition In Bankruptcy.
 This spring several creditors flied a petition in bankruptcy against the company. whose attorneys declared it was solvent. Hearing of their de- murrer to the bankruptcy petition resulted in Judge ". l. Grubb hold ing that the Preston companv was tnsolVent and appointing John CoNe as receiver. This is the present status Of the manufacturing company.
 Stock sales on which the reported indictments are said to be based. were carried on extensively, with elaborate prospectus matter being broadcast by high powered organ ization, it Is declared. The depres- sion period of 1921 is said to have weakened the vitality of the concern and it gradually drifted into it's pres ent situation.
 Credit for working up the cases against the two companies is said to be due to William c. Oats. mem Der of the Alabama securities com mission, who has handled them for nearly two years. Mir. Oats has been in Birmingham for several weeks. gathering evidence, He left for Mont gomery Tuesday night his task com pleted for the time being, it is AaAee. stood.
 Action On Banner Mutiny.
 Grand jury action on the Banner mine mutiny is expected to take Inc form of an exhaustive report on the situation and a strong recommenda-. -iou that the next grand jury. to 5e organized October Is, continue tbS i,- / sestigation of alleged violations of he law practiced upon and bv stats
 eased convicts. Following it's report the grand jury will be discharred ]. c. Shaw is foreman of the present body.
 WALTON FIGHT