St. Paul daily globe., 1889-05-26
Sensational Suit Brought by
It Against Hicks, Sanders,
Joslyn and Pratt.
They Are Charged With Pull
ing the Company's Leg for
100000.
Joslyn's Proceedings Against
Hicks Revealed the Alleged
Swindling Scheme.

Late yesterday afternoon there was
filed in the district court suit brought
by the st. Paul Distilling company
against its former vice president and
manager, George w. Hicks. his wife,
Lizzie NJ. Hicks, and John r. Joslyn, j.
III. Sanders and Daniel r. Pratt. The
complaint alleges most gigantic and
successful fraud and conspiracy, and
demands Judgment against each
of the defendants for 100000.
The complaint substantially sets
up as follows: That Hicks and Joslyn
lived in Elmira, N. Y, and, enjoying
the friendship and confidence of a large
number of wealthy st. Paul citizens,
came to this city and entered into a
fraudulent conspiracy to cause the Or
ganization of the st. Paul Distilling
company. In the autumn of 1887 Mr..
Hidks. having interested large num-
Der of most respectable men of this city,
obtained the election of himself as vice
president and general manager. lie
was apparently in earnest about his
new enterprise, and readily subscribed
for 100000 stock, the whole OF the cap
ltdl StOCh UeiuS g~oV,VOo' LAO eioi'.o
and represented himself to be
an expert distiller, and by trick
and sophistry managed to become
vested with the authority to
secure bids for the construction of the
plant. There being all obvious impro-
priety in taking such contract HIM
self. he procured bids by Joslyn and
Pratt and others unknown to the COM
pany, but well known to and acting in
collusion with Hicks, JoSlyn and Pratt.
These bids were drawn for, and at the
direction of Hicks himself, and were
designed to deceive the company which
had thus far no reason to doubt that the
bids were being offered by contractors,
in fact, and parties wholly outside of
the company. On the contrary the bid
ders were blindly ignorant of
diStillery construction and knew
nothing of the matter they were
bidding on, but simply intending to aid
and abet Hicks. acted under his direc-
ton and guidance. JOsiyn then ell
tered bid to construct the distillery
plant for 1922, 900, figures agreed upon
by Hicks, Pratt and the others. The
other alleged conspirators whose names
are not given in the complaint. all bid
higher and above the amount which
JOSlYH Ulu 81 DIS " lIiuuCC tiO SoHEyaHS
to award the contract to the Joslyn-
Pratt Hicks combine, which was lying
in ambush awaiting the result of the
company's meeting at which the bids
were to be considered. When the bids
were all secured and properly executed
all of which have since proven
to be blinds = Hicks attended
the meeting of the company's
directors and exhibited the bids. He
then falsely represented to them that
the bid of JoSlyn was the lowest which
could be obtained, and was reasonable
and fair bid for the construction. Tne.
directors relying upon the representa-
tions of Hicks, let the contract to JOS
lyn at 1922, 900. The company has since
learned, however, that the contract
might have been let at S135,000, and
even this amount is in excess OF what
the alleged conspirators. actually ex-
pended IN constructing the plant. All
this Hicks well knew. having at that
time actually procured bids on particu-
lar portions of the work which demon
strated that the same could be com
pleted for s155,000. During all this
time in which this :.
SCHEME WAS BEING FURTHERED
j. Fl. Sanders, was treasurer of the
company and cOgniZant of what was be-
ing perpetrated by Joslyn. Hicks and
Pratt. He is charged with being inter-
ested with the others in obtaining the
construction contract and was constant
ly assisting them, as they all intended
to divide between themselves, through
the said fraudulent acts, the 100000
which would be made out of the con-
structiOn contracts. Either on OF before
H. lot Inr
was Informed OF the actual price at
and was fully informed and aware
of the false representations which
Hicks made to the company; also OF the
alleged fraudulent means adopted by
the said so-called conspirators to obtain
the contract. Sanders was let into the
conspiracy and promised part Of the
profits. Here Sande had grand Op-
portunity to avail himself of the official
power bestowed upon him. The COM
pany allowed him to disburse funds at
his own discretion, and relied upon and
had implicit confidence in his veracity.
The complaining company charges
Sanders with having actually conspired
with Hicks. Pratt and Joslyn and as
sisted them in procuring the contract.
Not. however. until Hicks, Joslyn,
Pratt and he had bound each other
by agreement to share in and
divide the profits Of sfO0,0
All of this Sanders well knew, and by
his acts and official powers promoted
Josiyn is not a contractor, but an at
torney, and acted as Hicks agent in
bidding for the construction contract.
Hicks, Pratt, and the so-called Cocoon
spirators furnished the money neces-
sary to carry out the contract, and the
buildings, are now constructed and
all up. Hicks had agreed with the
directors to advance $4,000 on the con-
struction contract and begin building at
once, and the directors agreed to reim-
burse him very soon thereafter from
the funds realized from the sale
of the company's stock to the
other members of the directorate.
When the contract was completed
Hicks represented that he had paid out
about one hundred thousand dollars,
which was the amount of stock he had
subscribed for. This was false and in
tended to deceive, Hicks having paid
very little. it any, money. This false
representation was made to procure
100000 in stock. and its untruth was
known to Sanders, JOSlyn and Pratt, and
fully indorsed by them for the purpose
of securing their stock without con-
SideEation.
THE COMPANY sUspECTING NOTHING,
and the vouchers for this alleged ex-
penditure having been carefully pre-
pared to successfully carry out the al
legged fraud, the stock was issued to
Hicks. and. upon his direction
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