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Show BARES FRAUDS IN OIL STOCKS Texas Making Threefold Inquiry Into Shady-Deals Shady-Deals Within State 'By NEA Service) PORT WORTH, Tex . .Nov 17. Threefold Three-fold Investigation of the flooding of manv states with worthless oil storks is under , way in Texas. Criminal prosecution of many oil rro moters for fraudulent use nf the malls, barring of their present business methods meth-ods by tho federal trade commission, an 1 exposure of theso methods by the oa tlonal vlrilance committee of thr- Asso-clated Asso-clated Advertising club? of America are among the results expected. ! The investigations in Texas confer It Fort c-rth Dallas and Houston. SimI- ' lar Inquiries are under way or ha ben completed In Arkansas, another hoi Of bogus stock selling, and in Kansas City. Evidence, already has been uncoverejd showing tho swindling of thousands ol persons throughout the Cult.. I Sta. Heavier even than at the time oil " v.ild-i.attlng" v.ild-i.attlng" was in its flower In 'IVxas is I the- harvest of Illicit gain which the promoters pro-moters have rcapv-cl MAKE BIO CLEAN-UP Publicity, either in newspapers sneciaj-ising sneciaj-ising in oil promotion .r in dlrect-by-inail canvassing of "sucker lists." has eii-aoled eii-aoled the stock-selling promoters to make amazing "clean-ups" at tho expense of tho credulous. "Declarations of trust." which the promoters pro-moters hold are legal under the common law, urc used by the oil men to enable mem to evade prosecution In the state! courts or suits lu the civil , Claiming the right under these defla-ratloas defla-ratloas to exclusive and complete l uiur 'I of the affairs of the syndicates they organize, or-ganize, the promoters often pocket 50 er cent or more of the proceeds from their stock-selling campaigns as "organization "organ-ization fees. " pay themselves handsome salaries and me.-t bi? expense accounts from the remainder, and spend little i r nothing in actual oil operations "MERCERS' QUESTIONED From syndicates which have been mllk-i mllk-i i U:y by tho original promoters. merpUS oil "mergers - now nourishing In I ho.-t Worth and olse-.vhero buv lists f I stockholders and canvass these for mor.' profits. Th "mergers" write alluring letters offering to exchange their own stock for the stock of defunct companies, compa-nies, provided tho holders buy :'5 per cent addition 'merger" stock for 'ash. I igltlmaey of the "merger' promotions promo-tions Is bidng especially Inquired into by the fedeial trade commission. "small dividends which the "mergers" ray from time to time come from the proceeds of stock sales, federal auth tics hero believe. no |