Morris v. United States

7 F.2d 785, 1925 U.S. App. LEXIS 3615
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 24, 1925
Docket6854
StatusPublished
Cited by28 cases

This text of 7 F.2d 785 (Morris v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morris v. United States, 7 F.2d 785, 1925 U.S. App. LEXIS 3615 (8th Cir. 1925).

Opinion

KENYON, Circuit Judge.

Plaintiff in error (designated herein as defendant) together with a number of other persons, was in-dieted on December 12, 1923, .in the District Court of the United States for the Western District of Arkansas. All were charged in eighteen counts of the indictment with a violation of section 215 of the Criminal Code (Comp. St. § 10385), by having devised a scheme to obtain money and property by false pretenses, and in carrying it out to have used the United States mails-. The indictment occupies eleven pages of print in describing the scheme. The nineteenth count of the indictment charges a conspiracy of the same defendants under section 37 (Comp. St. § 10201) to violate said section 215 of the Criminal Code, and as a part of said violation to commit the offenses set forth in the first eighteen counts thereof. Some fifty-one overt acts in pursuance of the scheme to defraud are alleged, none of which relate to the placing of any letter or package in the mails, or receiving one therefrom.

At the conclusion of all the evidence, a motion was made to direct a verdict of not guilty. No grounds for such motion were specified. This was overruled by the court.

On June 6, 1924, the jury returned a verdict of guilty as to defendant on the nineteenth or conspiracy count, and a verdict of not guilty on the first eighteen counts charging violations of section 215 of the Criminal Code.

The alleged scheme to defraud and conspiracy so to do were based on certain promotion organizations under the guise and in the form of trust estates supposedly to engage in the production of oil and the sale to the public of shares or units therein. These organizations were designated, “Harry N. Morris, Trustee,” “Workingman’s Syndicate,” “Harry Morris Guaranteed Gusher No. 2,” and “Harry Morris Guaranteed Gusher No. 3,” which seems to have been a general merger of all of the other promotion companies. The Mid-Continent Brokerage Company and the Morris Drilling Company were organized as subsidiary concerns, in both of which defendant was an owner. It is alleged in the indictment that the Mid-Continent Brokerage Company was nothing but the mouthpiece of defendants in sending out market letters quoting fictitious prices on the *787 units or certificates of interest of said companies.

An intensive campaign of advertising was carried on for the purpose of selling shares or units of interest in these companies. $187,095.03 was spent for advertising the promotion ventures, and underwriters’ commissions of $321,360.76 were paid for selling units. Nearly $2,000,000 of stock, or units of interest, were sold in Harry Morris Guaranteed Gusher No. 3. These advertisements were inserted in various papers throughout the country through the instrumentality of a certain advertising agency. To illustrate the character of the claims made by these various promotion companies, wo quote extracts from a few of the exhibits introduced in the case, either letters or advertisements, viz. letter of Harry N. Morris of February 3, 1922, Exhibit No. 521:

“My Guarantee
“To the Man or Woman Who Can’t Afford to Lose.
“I guarantee a producing oil well — I guarantee it positively, absolutely, unequivocally —without the quivering of an eyelash, or the batting of an eye—
“I back my guarantee by saying to you:
“Don’t send me a thin dime — send it to the Guaranty Bank & Trust Company, El Dorado, Arkansas, with instructions: ‘When
Harry Morris, Trustee, well in Sec. 20-18-35 produces oil — that oil hits the crown block or goes out the side — turn my money over to Harry Morris.’”
From Exhibit No. 67A, an advertisement of the Dallas Oil News, July 28, 1922, the following:
“Exhibit No. 67A.
“The Dallas Oil News, July 28, 1922.
“Harry Morris Guaranteed Gusher Syndicate No. 2 5 Proven El Dorado Acres Morris Actual Gost Plan.
“His Record.
“The record of Harry Morris is one of the most'remarkable in the history of the oil industry. His trustee syndicate well, a guaranteed gusher, came in as a big producer and is now paying off every month.
“His Workingman’s Syndicate well came in a big gusher and is now earning big dividends every day.
“His Harry Morris Guaranteed Gusher well is on top of the sand and bids fair to be brought in as one of the best producers, of the field.
“His Guaranteed Gusher Syndicate No.' 2 Ms new enterprise, is preparing to drill on five golden acres in the heart of the El Dora-do field and should pay enormous returns to all those who bny Ms units.”

From ExMbit 68, advertisement in the National Oil Review, September 22, 1922:

“Harry Morris Huge 424% Cash Dividend Gives Homes and Cars to Unit Holders.
“These letters are living proof to all the world of how Harry Morris keeps faith with his unit holders. Are you one of those whom this man’s great work is benefiting? You can be if you will act now and got in before another big Harry Morris pay day comes.
“Here are some letters showing what unit holders in the Guaranteed Gusher Syndicate No. 2 tMnk of Harry Morris and his 424 per cent, cash dividend. Originals of all these letters are on file in Mr. Morris’ office, and the names and addresses of their senders will be given on request.
“Winsome Wyoming Lady Receives 424% in cash. [Photograph.] The above picture shows Miss Ella May Pury of Oakley, Wyoming, who was one of the very very fortunate investors with Harry Morris to receive a cash dividend of 424%.”

From the same exHbit the following:

“Warning! Harry Morris has absolutely no connection with any other guaranteed gusher proposition. Harry Morris is sole originator of the guaranteed gusher plan and his syndicates have always secured gushers. The tremendous merit of the guaranteed gusher plan is obvious because of the large number of imitations that have sprung up since Mr. Morris came out with his first guaranteed gusher deal. Mr. Morris is one of the few operators guaranteeing a gusher who is financially responsible and can back up any and all statements. Also make sure that when you are guaranteed a gusher that an oil gusher and not a mere gas gusher or a salt water gusher is meant and that .when you are guaranteed dividends, cash dividends are meant. Harry Morris always pays dividends in cash. * * *
“You Can Ride In An Automobile, Too.
“You Must Realize when yon come into this syndicate that you are getting in on two wells about which there is no guess work — ■ two wells which are absolutely guaranteed to be huge gushers.
“You Must Realize that one of these wells is in the very core, the very heart, of the old established proven El Dorado field, where a new deep sand has just been found, giving *788

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Bluebook (online)
7 F.2d 785, 1925 U.S. App. LEXIS 3615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morris-v-united-states-ca8-1925.