Evening star., 1935-11-01
Indictments
Continued From First Page.)

the Attorney General to participate
in the case. and Assistant United
States Attorney Henry Schweinhaut.
Schweinhaut said Verser, Clay,
Montell and Ward have agreed to
surrender to authorities and that
bench warrants will be issued for the
others indicted. Postal authorities
have been unsuccessfully searching
for the elder Wightman for more than
a month, he disclosed.
The Government claims the United
States Royalties Exchange and the
Verser-Clay Co. obtained oil leases
Of doubtful value in Pottawatomie
County, Okla; Oklahoma County,
Okla, and Bee County, Tex. and
exploited these properties to Gus
toners as of great potential value. In
some cases, it is charged, wells would
be drilled on property where it was
known the oil had been exhaust
in order to deceive investors. Nu-
merous Misrepresentation of facts
concerning production and capacity
Of wells are mentioned in the indict-
ment. Where it seemed good business
fictitious royalty payments were made
to investors, sometimes far in excess
of what they had expected to get.
This, it is claimed, was done to pro-
mote other sales.
Another Alleged Scheme.
Another scheme alleged to have
been employed was to delay conveying
title to an oil royalty to the pur-
chaser until the oil lease had de-
preciated in value. BY this means
Wightman is said to have been able
to sell royalties he did not own.
Some of his activities were con-
Quoted through the Mid-Continent
Crude Oil Purchasing Co. of Okla
homa City, controlled by Verser &,
Clay. it is alleged.
Montell. the president of the New
York firm which furnished the United
States Royalties Exchange with guar
anty certificates, is said to have issued
these certificates without any inves-
tigation of the properties on which
appraisal was guaranteed The cer-
tificates purported to guarantee pros
pective investors against loss of prin-
cipal over a period of years, and were
used in sales promotion, it is alleged.
The stationery of the royalties con-
cern bears on its bottom border a
picture of George Washington and
the slogan, Know Your Royalty
Dealer"
Wightman and his agents are said
to have promised monthly payments
to investors of from l to per cent
on royalties which we're of little or no
value.
No local persons were among the
alleged victims named in the true
bill, although numerous Washingto-
mans are said to have lost money
through royalties purchased from
Wightman. Names of those listed
by the grand jury as having been de-
frauded were: John G. Twelbeck,
Baltimore; James S. O'Grady, Hawley,
Pa; j. G. Willier, Lancaster, Pa;
William T. Rich, Newton, Mass; Err
minnie L. johnson, Ardsley, Pa: Os-
Car wagner, 1OnKerS, N. <, ErHeSL
E. Ballard, Peekskill, N. Y; Lily A.
Fink, Allentown. Pa: Jacob Keefer.
Littlestown, Pa; Laura E. Lutz. Allen
town, Pa; Sarah Cobb, Ellicott City,
Md; Edith w Silver, Darlington,
Md; Harry N. Feist. Long Island.
N. Y, and George o. Ball, CIaremont.
N. H.
Six leases were involved in Wight
mans royalties sales, it was said.
These were named as the Kimball-
Wightman lease. the Mauldin lease
and the Wightman-Warde lease of
Bee County, Tex: the Carter Atkinson
lease, Oklahoma County, and the
Amerada Harrison and Atwater leases
in Pottawatomie County, Okla.