The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1880-07-23

So share. A large number of soldiers |
Invested, but how many those most in
terested have meyer yet ascertained.
A number of prominent names were
attached TO the circular to float it. Some
of these not only said they had no such
connection as was claimed IN the circu-
lar, but they actually refused to take
any of the stock or have any connection
with the scheme. At least one of these,
a gentleman of great prominence, was
put down as being one of the original
purchasers of the oil lands of the com
pany.
Besides the counties circulars sent
broadcast into the armies, the advertis-
ing columns of The Army and Navy
Journal were used for months to give the
matter prominence among army men.
The 2S, 900 shares offered were to provide
funds for striking oil. The gentlemen
who projected the enterprise divided
1T2, 900 shares of the stocks among them
selves, but set apart $4,000 shares to sell
to soldiers in order to obtain what was
styled additional working capital
OF this vast scheme there remained
only $4,000 shares, subscription price,
49," which the soldiers were permitted
to purchase. The companies property
was represented to be very valuable,
with perpetual lease, situated mainly
in Venango county, Pennsylvania, on
Cherry Run, near the famous Joy farm,
which had then a wonderful strike of oil,
and near great deal of property that
had been largely developed.
The company, it was stated, had been
organized on different plan from most
companies. Forty-five gentlemen, Sc
lectcd after careful examination, pur-
chased the property and had developed
it. In sixty days the wells would be
completed, and would be highly produc-
tive. The stock was all full paid, not to
be liable to any assessments, and no stock
holders assumed any personal liabil-
ity. Italics were used TO emphasize the
fact that gains were certain, and that
there was no possibility of loss, and that
the reputation of all concerned secured
this.
HISTORY OF THE COMPANY.
The early history of the company had
been an interesting one; but this was
carefully concealed from the army Off
GERS who were asked to take stock in it
under General Hancock's wing. Its pa
rent was Colonel VIM. ID. Mann, of
the 9TH Michigan cavalry, an army spec
| ulator. The government had kindly re-
| leased him from duty in the army over a
year before, and he had been engaged in
selling patented cavalry Announcements
to his late comrades. 1t was stated IN
der oath in court atterward that he of.
fered large commissions to officers to Sc
cure him contracts for these cavalry ac-
coutrements. Upon one contract, in
which he had Gen. William 5. HillyeT
as n partner, he made profit of over
| $1,000. Early in the winter of 1863, he
turned his attention to a new field OF
| speculation. There was 4 strong revival
of that speculation in oil which had
been one of the annual ''crazes" of the
financial world ever since the first oil
discoveries in Pennsylvania. The news
papers were filled with advertisements
announcing the formation of new com
panies, OIL rose in price, and the village:
of northwestern Pennsylvania were
thrOnged with oil spectators.
Mann's eyes were caught by this fresh
ct of speculation, and he suddenly be
thought himself of little property tina
had come into his possession in 1859 il
Grafton, Ohio, near the Pennsylvani;
line. 1t had long lain neglected a:
worthless land, and the buildings upoI
it had fallen into utter ruin. But witt
this as basis. what could not be don,
in the way of speculation in oil? TIL
land could be represented as shining
with oil, and the buildings as veritabl
palaces. He determined to organize al
Oil company, with the Grafton propert.
as its foundation stone. He at frs
thought of calling it the Washington Pc
troleum Company, and of interesting ii
its welfare residents of Washington
Dc.
Then he had golden inspiration
He perhaps was aware that even Eng
lish noblemen had been known to pei
NIT the use of their names at the heat
of financial enterprises of deubtfu
strength; and that their names imparte'
confidence to hundreds of men desiring
to invest money, and led them, as the
otherwise would not have done, to pu
their money in the clutches OF the off
GERS of those companies. Why not pu
at the head of the proposed compan
some illuslrious army officer, who's
: name might have the cnticing power t
; men lately in the army that RothE
child's would have to regular dealers il
stocks. The rebellion was evidentl
: nearing its end. Washington was full
of officers on their homeward way
, Many of them had been paid off an,
! their purses were bursting with money
Men and officers were anticipating
speedy return to civil life, and such a
had money were looking about for SAT
investments. This was the class Mani
r thought he could interest in his com
. pany. There was an additional advan
; tage to be obtained by seeking their SUP
port. There was naturally a stroni
feeling of brotherhood in the army; ant
even in civil life each man would fee
like ranging himself beneath his supe
rior officer. The placing of distin
guished general at the head of the com
pany, plainly, in Mann's opinion, woulI
lead to many colonies, majors, captain
and lieutenants taking their stand, in
j financial sense, beneath his banner
Mann carried out this scheme to the lei
ter. He formed an oil company with tn
: title of United Service Petroleum
! ana Mining company, and he made it
f president = Major-General Winfield S
Hancock.
= The words UNITED Service" were in
, tended as a synonym for Army AM
Navy" and were meant to imply tina
, sailors as well as soldiers would be gra
, ciously permitted to contribute thei
savings toward the increase of the com
! pany's funds. Mann opened subscrip
. ton books for the company at Owen
!, hotel in Washington, in the first days o
March, 1865. The enterprise prosperet
greatly among the army officers after
, was publicly announced that Genera
Hancock was to be its head. All officer
. that passed through Washington wer
. invited TO buy stock, and letters wer
, | written to those yet in the field befor
Richmond and with Sherman in Nortl
Carolina Friends and acquaintance o
Gen. Hancock personally intereste'
themselves in his enterprise and sough
, subscribers for the company's stock
The organization was legally effected il
Washington on March o, 1865. Genera
. Hancock was made president, although
the amount of his subscription, 81, O0C
was far less than that of many of tn
, other subscribers At the meeting 70
; organization Mann was directed as 9Th
q trustee of the subscribers" TO turn owe
| to the company the property in Penn
| sylvania which he said he had bought il
|, their behalf since the inception of tn
) enterprise.
ii The inability of military officers t
1 deal wisely with civil affairs was neYe
! more signally shown. 1t afterward az
/. peared from evidence given in the court
, that neither General Hancock nor tn
? army officers associated with HIM in tn
p company made any inspection of the OF
4 land Mann purported to have bOugh
in Pennsylvania, or audited his account
a with thoroughness- They took his state
: ments as the truth and blindly mad
/ subscriptions to the amount of $65, 00C
$57, 600 of which was paid in.
; Mann, upon the organization of tn
e company, made preparations to repler
e ish its Golfers and issued a fiashin
G prospectus in which it was Implie'
e that the company had struck oil,
a that Hancock was the presiden
/ of the company and was pull
a lished in all those papers which b
q thought would reach the soldiers. TIL
t promises of the gIittering prospectu
d was the only return they ever got 70
e their investment Affer awhile whe
}. no news was heard from the well, som
b of the officers began to be anspiciou