The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-04-21
81 PROM0TERSA ARE
UNDER ell A R sc s
BY FEDERAL JURY
Dr.. Cook of Arctic Fame
Among Those Charged
With Fraud

FORT WORTH, Tex, April 20
Some of the most prominent and
widely known men of Texas were
included in the indictments returned
10y grand jury Friday, charging 80
oil promoters and associates with
using the mails to defraud.
The first arrest made was that of
John Honea, three times sheriff of
Tarrant county, in which this city is
located, and former deputy under the
famous United States marshal "BilP'
Mcdonald. Honea, who was indicted
in connection with the operations of
the Mid-American Oil and Refinery
company. gave himself up at the fed
cral building.
f. c. kingsbury, another we'll
known Texan, prominent in political
circles, and who was the republican
choice for postmaster of Fort Worth,
few months ago, but was refused
the appointment at Washington, was
indicted as the president of the Con-
sclidated Producers and Refiners
company.
Cook Is Indicted.
DR.. Frederick A. Cook Of Arctic
fame, head of the Petroleum Pro
ducers' association, was among those
charged with using the mails to de-
fraud. Cooks firm is the largest OF
the companies involved in the indict-
ments and its ramificatlons are said
Il extend to every state in the union
Postal authorities said that truck
loads of literature advertising, the
"get-rich- quick" possibilities of in
Nestments in Texas oil wells, were
mailed from the company's headquar
ters here.
One of the circulars of this COM
pany it was charged, was signed by
the former explorer hims self, in which
lie cautioned wary investors against
the fake stock schemes" of unscru-
pulous promoters.
The petroleum producers grew out
of a merger of a number of indepen-
dent companies. each of which failed
in its turn and was taken over by
Cook.
The indictments were heralded
here as the end of stock selling
furore. which has brought hundreds
of millions dollars tC Texas during
the past three years. Receipts from
the Fort Worth post office exceeded
those in any other city of its size in
the country. Entire office buildings
were occupied by the promotion COM
panies, and local printing plants
worked 24-hCur shifts to fill the or
ders of oil promoters for advertising
literature.
spend Month Probing.
The grand jury spent an entire
month Inspecting evidence gathered
~r a six months investigation by
uthorities The evidence
tons Of letters, circulars
r' ' advertising matter by the
SDcFtiNo Durt a q I. c
elk.
nature wildly pictured the
fits that would come from
ng gold" of Texas oil wells
Nf+t nall Investment was neces-
cap great profits was the
,.p'- Hing point for the alleged
4ldul' stock.
odete District Attorney Henry
v eisc 'sucd statement based on
81 frnment's evidence which
BOWS : outstanding stock of the
HQan involved to be s17.395, 900
.'- the otal amount of money they
have tat n in is s7044.500.
NCsrrt ne to the indictments the
"nmr5. built up their huge CAPT
'ti.1 on the strength of mythical
on Nfir gs. Almost invariab bly, the
sguetri IONS for stock were obtained
grouFit The mails, according to pos
TAI authorities. Marvellous schemes
of lake advertising were used to
'raw p the small investor, it was
g. rr...rEt