The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-08-06

sion of better and more reliable interests. But
after the storm came the calm. The flood had left
its traces behind Crushed hopes and ruined for
tunes mark its ebbingj and the interval Of quiet
that has followed, and the review the situation
1t has produced, has bred in many the desire 10
ayenge disaI poin tment upon those most prominent
In organizIng and encouraging the hopes that
proved 80 delu.ivo. The fact is patent that the
prevalent excitement was taken advantage OF by
inscriptions parties, who hestated not at any
assertion or statement no matter how exravagant
Fraudulent, that would aid their enterprise.
Equally true it Is that others OF honest purpose
and intention were induced by the glo wing prospect
of the sudden acquisition of wealth to lend their
names TO ORGANIZATIONS, and aotive assistance to
their management, whose territory has proved to
be worthless, and whose only success has been in
wasting in unproftab and useless development
the subscrptons OF too confident stockholders.
Now, however, that the of calm reflection
has returned, trouble is beginning to formd
able shape for all these, the honest we'll as the
fraudulent Those who then, relying on the glowing
statements Of the prospectus and the advertisement
contrbu ed their money, realizing the fact that
IL departed from them forever scanning more
attentvely the promises that were made to the ear
only to be broken to the hope. Sober consideration
has sought legal advice enlisted its aid sand the re-
suit the numerous criminal prosecutions that
have been instituted, and which now engrossing
the attention of our Court of Quarter Sessions and
In the invoking OF the milder but equally effective
atd of Court OF Equity. One OF these latter
we des gn to make q note Of
In the Supreme Court bill In equity has recently
been filed by certain stockholders of one of our
numerous oil and mining companies against several
welLknown and prominent citizens, who were chief
organizers, promo ers, and managers of the Com
pany. 1t will be by the abstract of the bill
which we uve that the charges made are of the most
and deiraud, are boldly and solemnly asserted.
Until, therefore, the answer of the defendants is
made it but right that should be suppressed
But the general alterations of the bill fit closely
the case of other companies that have been shown
to have been frauds upon the community, that as
matter of pubic interest, have made the following
abstrsct:-
II averred that two of the defendants and Others,
whom they Induced to give their names for that
purpose having associated themselves together TO
toim an Oh and mining company, did, at a meeting
of said corporaors, held pursuant to notice, they
being the control ing parties, and procure
themselves to BE- elected President and Treasurer of
the Company subsequently the necessary cer,if-
cate and afddavt for the obtaining OF charter
prepared and recorded, and a charter obtained.
During all this rime and even prior thereto 1t IS
averred the de endants were soIcing and receiving
subscriptions 10 the stock of the Company which at
shares, at one dol ar per share, in $l25 900. In
order to obtain these subscriptions prospectus
issued, which, the most hatterIng terms and
positive statements, set forth the mutuahty
of interest of all the sub 'cribers to the
stock; that the estates of the COMPANY, In
stead of being burdeped with an exorbitsnt
profit, exacted by few lucky originals, decided
in fee, direct from the first owners to the stock.
holders of the Company; ana that, from the rich
Of fhaaa LAM fharau mi ha
derived an immense profit to the stockholders. The
prospectus was published also in the public news
papers, But 1t is averred that these statements were
not confined to advertisements alone, but that from
day to day the defendants, at their Office and else
where, continued to assert to all whom they me-
verbally to the same effect; and at later dates, when
subscriptions began to flag, that other advertise
ments were Published asserting that the develop
ments ON the Company's estates pointed to the
existence of other rich and immensely valuable
minerals, which had been examined by competent
chemists and pronounced to be OF rare purity, and
which discovery added new wealth to the Company
Is ayerred that all these statements were wholly
false, snd that complalnants and others, misled by
but relying upon em, and the character of those
whose names were subscribed thereto, subscribed to
very large number of shares respectively, and paid
dollar for share, until the hundred and
twenty five thousand dollars, or the larger part
thereof had actually been paid into the treasury of
the Company.
The comp ainants' bill, after setting forth these
statements charges that tho deiendantg in view of
success full result both in the formation of the Com
pany and the subscription to its stock, frauduentlY
combining and conspirng had contrived fraudu-
lent scheme to take advantage of the excitement
prevailing reference to lands in certain localities
containing or supposed to contain oil, and the
ayidity wlIh wan persons of all classes subscribed
without even seeing the lands or examining the
titles TO them relying solely on the honesty, bust.
ness capacity or shrewdness of the projectors. This
scheme was, as is charged in the bill, TO obtain title
deeds winch should falsely recite enormous consde.
Iations az having been paid TO the original owners,
and which titles should pass by oonVeyances to of
fhe defendants, and should by other deeds be con.
Veyed by hm to the Company, recing the same
cOnsiderat on, that it should appear that he SIM
ply took them without profit as trustee for the
Company during the delay incident to its organiza'
ton, when in truth and in tact it was the defend
ants intention that these tracts should be some
yaIueess or pretended tracts, tor which but little
money should be paid, and the said tite-deeds and
recitals therein should be collusVe and pretended
deeds and Tecitas, costing them vesy sman sums OF
money so that they, controlling the Company,
should convey the lands to it tor the fictitious price,
under prerense of paying the same to the original
owners, but IN fact put 1t in their own pockets.
In pursuance of this scheme, the bill charges that
the defendants procured conVeyances from certain
parties of lands IN this and adjoining State,
the alleged consideration in the aggregate Of over
eiphty thousaI dOllars-whlch convey ances were
allftaken IN the name OF the defendants, Instead