The Birmingham age-herald., 1924-12-13
WITNESSES TELL OF STOCK FRAUD IN OIL HEARING Purchasers Called To The Stand In Steady
 Procession WOMEN SHED TEARS AS STORY IS TOLD Birmingham Physician Invests More Than
 $27,000

CT Consolidated stock in April and May, 1920, on representations that | it was a non-speculative 12 per cent. investment, and bought more in the l fall of the same year when fi- nancial statement showed a surplus of $2,OOO,000, was told by 20 wit nesses Friday to the federal court jury trying A. w. Walker, Harold Walker, Sidney Menasco and Hud- mon Hopson, officers of the defunct oil company, on charges of using the mails in fraud scheme. Defense attorneys entered the fifth day of the trial expecting the govern ment to continue to adduce testimony of technical nature, but District At torney Kennemer uncorked surprise by calling stock victims to the stand in steady procession. Many others will tell their stories Saturday. Five of the witnesses were women. Some wept on the stand, while others released what appeared to be pent-up resentment against the defendants as | they told how their savings of lifetime had been swept away.
 Dr. Barney D. Sibley, prominent Bir- mingham physician, testified he in vested $27, 300 in stock that now is worthless.
 Present At Meeting
 q was present at meeting called to stir interest in stock sales," the doctor asserted, land heard A. W. Walker promise that everything would be an open book in the operation of the com pany, aud that no commission would be paid in connection with the sale of prop critics of the Texhoms Oil company to Walker Consolidated, of which he later became president. Yet MT. Walker re- ceived a commission of 10 per cent" This deal between the two companies, the district attorney told the jury, in- volved $2,S5S,75 and placed Texhoma Oil on a sound financial basis through the transfer of cash from Walker Con- solidated, which was officered by the same men.
 Dr. N. c. Glass, Judge Joe C. Hale and Mrs. Ellen Wood, private secretary to Victor H. Hanson, publisher of the Birmingham News, testified they in vested on statements made by A. w. Walker, president of the company, and that it took them nearly three years to find out that false representations" had been made to them.
 Many Victims
 Other witnesses, who now hold al- legged worthless stock in amounts vary ing from few hundred dollars to $25,- GOO, were A. G. Chambers, Mrs. c. A. Craven, Mrs. Alex McLoud, Mrs. Ger trude Rose, F. A. Dudley, W. s. Esco J. c. Hughes, Adolph Hersch. E. N. Lotion, R. E. Casper, F. J. Holley and Mrs. Neva Keebaugh.
 Mrs. Keebaugh, who came from Los Angeles to testify, wept bitterly during direct examination by the district at- torney. She formerly acted as Dal- las, Tex, agent of the company in the sale of stock.
 q sold large amount of stock and A file containing important papers bearing on the case was stolen from her home shortly after she was subpoenaed said.
 Bonus Is Paid
 E. A. ("Nick') Carter of Birming- ham and Dallas, associated with MT Hopson, one of the defendants, in the Hopson-Carter Realty company, was kept on the stand several hours and grilled relentlesly by Assistant District Attorney Jim c. Smith and by defense attorneys. He was fiscal agent of the Walker concern in Alabama and hand led the $1,000,00O of stock his firm agreed to sell.
 "We bought the stock for $S5 share and sold most of it for S100, though some brought as much as S110," Carter said. "A bonus of per cent over and above the regular commission was re ceived by the realty company, but was returned on advice of w. E. Hamilton, attorney for the oil company"
 Carter said representations were made that the stock was 'just as good as money in the bank and even better, because it paid 12 per cent and was in no wise a gamble"
 On cross oss-examination, the witness ad- mitted that every member of Hopsons family invested heavily and that they now have their stock.
 Answering questions from Earl Pet tus, attorney for Hopson, Carter said a brother in-law of Hopson sold all of his Birmingham property and bought Walk CT Consolidated stock, and that the Hopson Carter firm declined an offer from Gen. Louis B. Clark to trade Bir mingham real estate valued at $150,000 for stock shares. This was the strong est point yet made by the defense and the four defendants smiled broadly as Carter left the witness stand. It will be at least two weeks before the case goes to the jury, according to indications.