The sun. [volume] (New York [N.Y.]) 1833-1916, 1870-10-14
A HUGE PETROLEUM FRAUD
now 4 CAPITAL OF sfO,oo0,Ooo NAY
BE REDUCED 10 100000.
How 60 Keep a Fancy on the stock Board
Paving Dividends by selling the Capital
Nice Lutte CcnspirDcy in Great Cor
pOrniion- priohiLg a Hubble.


porniion -PrichiLg a Hubble.
Upon the records of the Court Of Common
P,c,s in Rrl Tor the city aud county Of New York
may hc found by any ,he interested tie coup mint OF
Joseph + SANGER aEG'nst the United Petroleum
farms Associauon. Geor-e II. Bsseli. DiN1 S.
D1ucomb, George v. 'bbo, Samuel c. llarrio;t,
jane bishop, Jeremiah Mni5ank, Camille c.
Roumngc, Era,ius +. Med, Duucan +, Curr,,
Austin Stevens, L. VI. Tenney. Luther Wise. w l.
Cor;elt Gu George W Mead, Frederic Prentice,
and soudierland NJ. seery.
Tie United Petroleum Farms Association lie a cor
roration existing 10 name. and was duly incorpo-
rated under the laws OF the state IN November, 1861
having for rayita stock appears by the certi-
cnte Of inooit Grafton ed In the oce Of the County
Clerk,
TEN MILLIONS or DOLLARS,
In a million shares &C go each. The corporation
was oreauzcd for the uipose Of cruising. procur-
ing, ming for, manufacturing, and selling petro-
oum." and its concerns were TO he managed by
nine trustees for the fret year. The trustees pro
cecdod TO complete the organization, and TO issue
he ten million dollars " capital stock.
a certificate flied in ;he County Clerks ONE Ia
Januory, 1855. shows that the entire capiii Of tn
million dodts hsd been aid IN, ard that the car itl
stock had been issued entirely in payment for
'siu lands purchased by IN, trustees, and nee, ssary
for TIE business ~ the corporation. But noN comes
an eyefLiCn that az the Inc OF such pretended pur
chase tune Of the trustee stockho dors that
subs cri .tion for the stock was ever opened by.
Tor, in heha'f Of this CORPORATION; that no stock
was ever issued Or sue' lsnd,; that tie value OF
any nd all lands ever owned, possessed BY, or
transferred 10 said cOrporatipn or pu'ch1std bY tho
rus ets, revcrwgs n. any time, then or thereafter,
equal tD one.tentn part OF tue capital bi ti000JODJ
- Was vel known 70. the trustees at tie time OF
such
PRETENDED PURCHASE;
that the sum actually raid tor the lands WIS far
aired by sal of the capital stock At ltss than ls
or Niue, aging about 81 PER share. rducied
hv TIE Trustees one or more @, whom held tite ic
tie larGs, which are situated in tie township OF
conn autcr NcnNngo county, Pa, and transferred
them - the corporation and actually took therefor the
sums realized from ralcs of stock, and also the
stpcS not ~ soli. executing ninsty honslni shares
which we're retained under the name oi reserved
stuok.'
L. juno, 'Gl. the sto,kaoi lera net ami reduction
It their c ipit' stock rom SiDWl0u & S200O01,
~ reducing tie pa value 81 ti' s'-rcs TO - each,
attc ptyl nnl certificate dev airing sucl
'lm g" 10 la'r been cH,c'ei was Led In the County
clerks ocicc.
iurt er charge against t'da immaculate corpora.
lien. or the ring which manipulated the funds,
j., that it never engaged In raising, procuring, or
mining for ctr"Icu1 or IN II M actnrlng or SC
NJ tvc sa.e; ut, ca ie contrary, leased the IAN
TO 'theI ser ons lot royalty, aud stl poi ions Tor
Iul iu: amt 'oai PURPOSES. Eyryt Inc % m.
i.rl idi- wife dividends cane aour, aud 'hc stock
Was ~rliuE Ia tie market from - 10 - cents rcr
share but
sronv AROSE
when the reserved stock was dipped into AMI
.uut ge D. away il ui- .sr.
AZ one meeting T. COMMITTEES sas appointed TO in.
qurc into tie Vtice " the stock and the eXHcdcuHy
of selling IT, MS tie Company needed money 90 carry
cut certain improve ents. Al subsequent meet
n: the committee reported that tho stocS VAS wotta
oniy ten cents yer share, and resolution was ras-cd
meeting Feb. Is, lS9. and the 23th Of same month,
tie reserved s,ork was rraobcd by d. ;. Dun
comb f. +. Mead. Austin ito ems, w. l.. Cortehu u,
Geo " Able. {. {. Roumsge. j Mi bank, ana l..
VI. iernty, who took ten thousand shares each, ara
Luther Wise and Goo Mead five tnousi'd eich.
maiing @oOl share- 10 ali TIC allegation Is that
his purchase Of stock for 5000 when the stme
saa wen worth AZ 80, was = conspiracy on the
taft of the trustees AID secretary Nho were wrong.
iui. led thereto Oy the renewed activity IN the pio
ducton and Ifco Of petroleum. and ly tlc 'act tina,
Tie coronation WAS regou'tIng TIE sale OF lnds or
tie right ui way 10 the Oh creek and Alicghany
RIVER Riircld mr1uy, which sale vs. ~ rcied
to realize ahru' tip'Oj. Tnis would have nible I
the tru-,cc- TO c,gre gooi dyilcHi on tag stock,
lIic actual value a. he property held by tue cor.
porlticn Is about t2iOOO, aud It ~ alleged til 1 I'M.
Ger ne present mana e'ucut the incpue derived
ihcrcron is MY abodt sufficient TO pay the sa,r
"t tie ohiD,r4 ul tie Com,sny "ith an occasional
small ulvidcun When sotue large sale OF lard ~
cDrct' sut c.e"t To keep lle 81. ck alive on t-e
= u,N Board,
Nj SINGER VINO slc'l 1--WE hu ,lrci shrrcs Of
TIE cal i'aI SOCK si'cc August, l~'f, went iu,o q
concern ia Z, Oh faith, lt >.s~. l tut Tor -tut x
JuhUu pulpu,c- as Ui+ a is arc nuS ,i,yy Ell
toward having the IroDctty sci f. the proceeds dis.
'rl utrd am ng tie ripus stockholders, and TIC
90. - 'Aw'4td. IN Injunction ra- been gran el
10y JUDGE Van rruut, hut tue corspirators have not
yet put 10 an answer.
T,.-c ,,'r.loum srccuators are rolling in wealth,
and pcrsist. at u t.ir "a rts get INTO fashionable
sos, .. IN ucusy aad rtdrr Onice In the re- ~
basement ui Pine src"t n be found q 90 cer~
oi tii- Cu"uur .i1u, Whcl 1r. been long wei known
% tie stock ,tOs"r-. A ign 10 t!.c ettrarce l.
lga.ci liItel r. rO' sum rms Assuci Non -
! ten lows Home Petroleum ,Onptn.. lHntn ~
Petroleum company. and hood Farm Petroleum.
tuu plHl, Of vA'cn concern, jui-ilS from tie -,n,
Grsrsc w. Able Irl Nu-un -,cvcns are I . mas 81
spirits. In Ie united cone IN are about ~ s'Ocy
20. tct-. ana the corp rail- II bad ori'inaih abOr
tlrcc hundred acre1. Tnc ring which wls Tor ~ 4.
| itl- -.ii. bought I'M lot Ct worthless AMI good
property mXca. and organized several other COMPS
LIr~. l.r Ntelr they are the ones nani-d On TIE
-I-u COLL not be tsce. taluc J.
u,tIulr l,a'uro of tie schcwe, witch aupeIrs n
have been carried out Is the saie from time to time
uy the cutIu.ouCn OF PORTIONS OF 10 r,sl estatc
,i.,I. Iu he ir.t instance, wa osf'ns biz luusi
/. 4 'ssG, ct - entire rItIl stock. AM the dc
ii. cO',iy dends fyon the utocced- Of suth sales
| thus pIr-.ntn. tIe vi menon ot a corporation
1,.l rug NI ionl- uut o. ia oYH 81 pt-t ttk, aaI
/ moi 4, q ITS urlti'g