The Cleveland leader. [volume] (Cleveland [Ohio]) 1865-1865, 1865-06-30

1t will be of especial interest to our read
era as several promimsnt business man of
Cleveland had subscribed for stock in the
exploded company, and ss the two men
charged with sWindling are both well
known hsres 1r7gs ~ 5e c1s ,at
Mr.. George D. Kellogg on Monday
lodged 8 complaint against William D..
Mann and Daniel Stratton, Jr, alleging
that the said Mann and Stratton had, by
false pretenses 81 to the great value of oil
lands said to be in their possession, and by
organizing q spurious company, obtained
large sums of money from various parties
for stock in the concern, which, as the com
plAinsnt alleged, and other gentlemen
swore, was nearly worthless. On this COM
plant Mr.. Mann was arrested, but Nj.
Stratton had gone to the West but was
probably also arrested as soon as the tel
egraphic order could reach his wherea-
bouts. ;A1 raa T7lta3 5000
It seems thai. VIM. D. Mann was q Colo
mel Of a regiment of Michigan cavslry,b but
tired Of the service, caught the oil fever,
resigned, and by the adolf use of the names
Of prominent men at Washington got into
his possession certain lots in VenAngo %.
Pennsylvania, and in Athens, Lorsin and
Medina counties, Ohio, which were claimed
70 be rich in oil. He st once organized q
company in New York embracing many
distinguished nsmes, under the title of the
lUnile1 Service Petroleum and Mining
Company" Major Gsne{sl Hancock was
the nominal President and the capital
stock was put St 100000.
The next step WAS the publication ola
flaming prospectus, specifying the oil lands
belonging TO the company, to-wit: Two
half acre lots and one three quarter acre
IN Cherry Run, Vensngo county, Pennsyl-
Vsnia; one. half-acre lot on Rocky River,
Medina county, Ohio, which was the & ia
nous oil spring lot - twenty acres on
Rocky River, near the town of Liverpool,
Medina county, wherein all geologists had
located the very centre of the oil deposit
ofthat region; one hundred and ffty-fve
acres on Federal Greek, Athens county,
Ohio, in the n~eighbOrhOod of the Jay Farm,
on which was q 100 barrel we'll recently
struck, with many largely producing wells
in the vicinity, and this tract belonging TO
the United Service Company was declared
by geologiss to be the every centre of the
oil basin,' and this property alone was
nsmple basis for a largo Company y one
acre, with hotel, barn and o~uthouses, at
Grafton, Ohio, on which was an old oil
well, and the SHOW of oil was superior p
three hundred acres vas the last mention
ed property, on which q well was being
sunk, with " all indications of oil y ninety
seven acres on Black river, near Grafton,
nfve-sixth of all oil p and eighty-four
acres in the same region, Hadjoining the
Rising Well Farm" and on which Is q
fine well of lubrieating oil"
Such WA the property, and the reader
can imagine the character of the extensive
story told in the prospectus about the rich
ness and the enormous value of tho oil
lands belonging TO the United Service Pc
troleum and Mining Company. 1t was
said that certain wells were in operation,
and others "Were being vigorously pushed
which, with good weather, would be COM
pleted within sixty days. Subscription
books wore opened in the leading cities.
The prospectus concluded demonstrating
the gigantic extent of this wonderful new
field for business, the certainty OF large
gains in it, by the %judicious enterprise, the
abilities, advantages and reputation of the
gentlemen concerned IN tins company; and
the positive and solid progress of its opera
tons up to this point it is believed that no
investment is at this day open TO the public
at once so safe and lucrative
To help on the work of selling stock, an
agent was sent out on a salary of 5000 in
stock, 10 bore a well, funds were provided
to him, q gang of hands, and the work of
digging the first well commenced in May
last.
Stock sold quite briskly. But some Of
E E6eE RBEibsffaaF Fss d gduins q 81 f &fon ayit ufnff1f they
had some personal knowledge of what they
were doing, and among these cautious per-
sons were Messrs. s. j.. Albright, late Gov
ernor of Arizona, VIM. s. Hillyer, and
George ID. Kellogg Whether they were
in correspondence with other stockholders,
does not appear; but whether for them
selves merely, or as agents Of other stock
holders, they wentto Venango county, Pa,
and Lorain county, Ohio, and asceFtsined
that this "Eden,D which is so graphically
described in the prospectus, was composed
of almost barren tracts, many of which
were not owned by the United Service Pc
troleum and Mining Company, and others
St which were mortgaged to the original
owners. The fine hotel and office that ap-
psar in the prospectus were found TO be
wretched shsnties and even the lots TO
which the company had some title, and for
which Mann pretended to have paid from
$4,000 to $35, 900, were not worth 81. 500
each. Messrs. Albright, Hillyer and KEEL
logg discovered three derricks, two engines,
one of which was worthless, an unfinished
office, and one weliwhich had been sunk
as above. at this time the work had stop
ped, the Superintendent Goodrich, having
expended the money that had been sent
him, amounting to 50, $50. A note for
81, 900 that Mann had sent him had been
returned protested, and he was unable to
borrow; hence the suspicion. .
THE DISCOVERY. boz
In this state of affairs Mr.. Albright set
about a general survey to ascertain the
magnitude Of the fraud, and on making
inquiry of old settlers and officers of COM
panies that were working wells, he was
enabled TO make complete report con-
earning all of the ten lots, showing that
instead Of more than six hundred acres of
oil bearing land, as set forth in the pros
pectus, tho company did not actually own
moro than three or four little One-scre
patches. He also learned that land in the
Immediate vicinity of these lands conld be
purchased for SIS 90 an acre. He there
upon put the result ofsAjs Investigations in
writing and forwsrdedSa statement TO New
York, TO Mr.. Kellogg, who had returned to
this city, and that gentleman drew up an
affidavit, which was taken yesterday by
Justice Dodge.
Accordingly Mr.. Kellogg made an afR-
dEEit of. the facts that have been discover
and giving the names of thirty eight
who had taken stock and advanced
money amounting, with some smaller
amounts from q few others. IN ss7,soo
ULner stiidavits TO a similar pHrport we're
also made, preliminary 10 the issuing of
process against these oil Spectators. Mr..
Goodrich, the agent hired to superintend
The boring of a well, made an affidavit
eorroborsting the Others, and Introducing
The following letter from Mr.. Mann, about
The protested check above referred TO,
which shows the spirit OfIthe scheme:
OFFICE MAINS PATENT AccoUTERMENTs,
rf NO.24O BROADWAY, n. Y, Maybe.
My DEAR GooDRICE: I inclose you
check. 1 have been obliged to
delay. You know 1 told you your check
would be protested,s IS had drawn another.
hope it hiss caused you no inconvenience.