The Birmingham age-herald., 1924-03-02
VICTIMIZING OF l,.::aBAMIANSTO :: ' aO 10 HIGH UPS Senate Committee Given Sensational Charges
 Against Daugherty PEOPLE OF THIS STATE
 SKINNED OF BIG SUMS w. c. Oates Charges Attorney General sSpurned Information
 Of Wholesale Swindles
(wsshington Bureau)

WASHINGTON, March 1.--As re- ported by this bureau last November, the attorney general, Harry M. Daugh- erty, spurns information brought by an Alebamaian, Dr. William 0. Oats, ex- ecutive officer of the Alabama securi- ties commission, that Dr. Frederick Cook, alleged discoverer of the north pole, was guilty of defrauding the in- nocent in oil speculate
 Drs Oates took his information to the postoffice department and Cook was prosecuted and is now serving a term in the penitentiary. <.
 Today .Dr. Oates informs Senators J. Thomas Heflin, of Alabama, and Thomas J. Walsh, of Montana, that the attorney general has interested him. self in another case involving oil, whereas a man who bilked citizens of Alabama out of sum between a quar- ter and half million dollars was per- mitted to escape punishment in Ala bama by pleading guilty in Texas, and accepting sentence of one year.
 Case To Be Taken Up
 Senator Heflinf and Senator Walsh were outraged today after digesting the Oates information. This case will be considered by the oil committee, by the committee which eventually will inves- tigate the attorney general, and the committee which eventually will fig ure materially in the charges brought by the Senate against Mir. Daugherty.
 Dr. Oates, in his letter, relates the story of the operation of this concern in Alabama as follows:
 'In the spring of 1920 the Alabama securities commission granted the 'ap- plication of Mid-Texas Petroleum cor poration, filed in person by it's vice president and general manager, Mir. Porter E. Glenn, of Fort Worth, Texas. and issued to said corporation permit to sell and offer for sale in this state 100000 shares of it's common stock of par value. of $1 per share. I sub seduently became suspicious of this cor poration and of the truth of the sworn statements filed with its application. / After an extensive investigation I found that same were grossly and ma terially false andN fraudulent They constituted the same representations on which stock was sold in this state and elsewhere through the use of the United States mails.
 Found Gross Fraud
 yhekeupon. q case was ioeketed be- lore the president of the commission, A. c. Patterson, who, after q full henr- ing thereof, whereat all of said defend, ants were represented by counsel, rem dered his finding of facts in the prem ises wherein he found that same was grossly fraudulent. Copy of published statement thereof is also herewith en-, closed. Thereafter Mir. Porter E. Glenn was indicted in the state courts of this state, the proof showing that he had obtained in this way from the invest ing public in this state between S2SS,- 900 and $432,O00.
 Difficulty was found in obtaining extradition from Texas and then re- filed complaint against Mir. Glenn and his company and a number of other Texas companies with the. chief post office inspector at Washington and also called upon the United States postoffice inspector here, D. H. Klein. Upon their agreeing that prosecution of Mir. Glenn under the United States postal fraud statutes would be instituted in this state and that Mir. Glenn would be brought here for trial, l furnished the postoffice department through Mir. Klein with all necessary evidence in the case, including the testimony of over 2,OOO witnesses, who were stockhOld- CTS.
 "Mr. Klein kept his word and ob- tained indictments here in the United States district courts. However, in- dictments were also found in the. fed eral courts in Texas. The case here was set for trial in the United States district court on December 5, 1923 the Texas cases (which were. really minor cases) were set for trial on Decem- Der 5, 1923. Mir. Glenn was allowed to plead guilty in the Texas cases and was given sentence of only one year.
 '"The United States district attorney here informed me at the time that he had just received telegrams from the attorney generals office in Washington directing that the case here be indefi- nitely continued; which was done, and, this notwithstanding the fact that MT. Glenn had fraudulently obtained from the investing public more than a mil lion dollars, and from people in the city of Montgomery more than one hun dred thousand dollars and from the peo- pie of the state between $2SS,000 and $432, 900. Under the law of this state this was tantamount to the grand lar ceny of these amounts. He has never been brought to trial for these frauds and this owing to the action of the United States attorney generals off, flee ill Washington as above indicated.