what does " T.W.O.C."here mean?
Papers were scattered all about the room, because recently he had written many short notices and distributed them through the town. Moodily he glanced at one of the papers labeled ‘The T.W.O.C. Is Your Best Friend.’ Some of the notices consisted of only one sentence, others were longer. There was one full-page manifesto entitled ‘The Affinity Between Our Democracy and, Fascism.’

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It might be this (from Wikipedia):
"TWOC (pronounced "twock") is an acronym standing for Taking Without Owner's Consent. Synonyms used by police in the UK include UTMV: Unauthorised Taking of a Motor Vehicle,[1] and TADA or TDA: Taking and Driving Away. TWOC derives from the wording of section 12 of the Theft Act 1968 and it has become the term used by the police in England and Wales to describe any unauthorised use of a car or other conveyance that does not constitute theft."

https://en.wikipedia.org/wiki/TWOC

There is also this from Oxford:
twoc
verb
[with object]British
informal

Steal (a car)
    ‘people are fed up with having their cars twocced’

https://en.oxforddictionaries.com/definition/twoc

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I suppose my suggestion is not so likely, since TWOC is apparently British and seems to go back to 1968, and the novel was written by an American in 1940.

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it's from The Heart Is a Lonely Hunter

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You might need to provide more context - country?  era? It's not something I'm aware of - possibly something from the USA?