Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-02-08
That Contains Much of Considerable In
terest to Many People in This
Part of Pennsylvania.
PRODUCT OF A GREAT DEAL OF LABOE
fraud Charged in as Many Ways as There Were Claims
Once on Time Set Up

claim in the case of Thomas c.
Gabler and Alexander B. Dunaway against
John r. Rush, the sensational sequel
of the historical and famous Laramie Plains
Land and Cattle Company "burst-up," and
to say that it contains interesting reading is
putting the statement somewhat mildly. In
an epitome, the document says as follows:
"This action is brought to recover dam
ages in the sum of $4,000, sustained BY
Thomas c. Gabler and Alexander B. Dun
away, by reason of certain false and
fraudulent representations and afirma-
tions made to them by John r.
Rush in reference to the character,
circumstances. credit property and value of
the capital stock of certain corporation or
ganized and authorized to do business un-
der the laws of the Territory of Wyoming
corporated as the Laramie Plains Land and
Cattle Company which fraudulent and false
representations and affirmations were falsely,
deceitfully and crattily made by defendant
in furtherance of negotiations for the sale
by John r. Rush and John Dowlln, of 60
shares of the capital stock of the cattle COM
pany' for the par value Of 500, and for the
purpose of deceitfully and traudulently in
ducing plaintiffs to purchase said shares
from the defendant and John Dowlin for
the price of s., ,3OO."
When the Purchase Was Made.
The purchase was made August 10, 1856.
"and," continues the affidavit, "at the
time of said purchase said capital stock was
utterly and wholly worthless and still re-
mains so.'
The statement declares that the price for
the stock was paid-S3OO by check and
$4,000 by their joint note, both of which
were fully paid to Rush and Dowlin, and
then says: plaintiffs were entirely un-
acquainted with the character, credit,
property and value of the capital stock of
said corporation, at the time of purchase,
and depended entirely upon the representa-
tions and afirmations of defendant, with
reference to the same" and upon inquiry
of Mr.. Rush for information, received the
replies, claimed to be deceitful
and false:
THAT the gross assets of said company
were 81, Ola 324, and its assets above liabili-
ties. or present value of property, S763. .67S;
that the liabilities were but S240, 33S SO;
that the lands, aggregated 155.7T0 acres,
worth Ss an acre, aggregating 1884, $40; that
what he designates as the Wyoming ranch
of an inelosure of near
ly 10000 acres of titled lands, and
about 16, 900 acres of land, the title to which
was in the United States, but had been filed
upon under the general land laws of the
United States by persons interested in the
company; that nearly, 10000 acres of what
he designated as the Wyoming Ranch, and
and 1850 acres OF what he designated as
'Hutton's Big Loramis Ranch were titled
lands, and that the company had good and
valid title to the same"
What Investors Thought TIL y Were Getting.
Continuing, the affidavit relates that ''the
lands which he designated as the Railroad
Lands, he claimed consisted of about III
acres of fine craving land, covered with the
rich, ranch grasses of the plains, the fatten-
ing qualities of which were unexcelled by
any grasses grown in the United States;
that what he designated as the
Fort Sanders Reservation consisted
of possessory rights and improve
ments worth S25,0O0; that the gross
profits from the company's ranch would
reach S140, 900 annually; that he would
guarantee plaintiff dividend from the capi-
tai stock OF per cent. for the first year and
10 per cent. thereafter; that the company
had purchased the entire property from
Messrs. Ora Haley and Samuel bass for
$500, 900. Of which $500, 900 had been ac-
cepted by them in capital stock at par; that
John Dowlin and others, of Pittsburg; had
for $500, 900 of capital stock and
paid cash Tor il, which sum had been paid
to Haley and Haas
The Plaintiffs then declare the foregoing
as false and untrue, and as
ser I the following in contradiction of the
same: THAT the capital stock never ex-
ceeded $500, 900, and that its liabilities were
always largely in excess of its assets; that
the liabilities Of the company at
the time those statements were made
were over $40, 900; that the company's land
never exceeded S170, 600 i'll value; that John
r. Rush, the defendant, was one of the
trustees of the company at the time the Rail
road Lands tract was purchased from Haas
and Haley, and that then be and John Dow
lin, also trustee, were interested in con-
tract whereby Haas and Haley agreed to
pay Melville c. Brown 81 IS an acre for the
same tract, t,aggregating nearly III, 900 acres;
that Dowlin, Haley, Haas and others were
also interested in contract, dated August
13, 1855, wherein the Wyoming Land and
Company agreed to sell that
Railroad Lands tract to Melville c. Brown
for 81 80 an acre, and that John r. Rush,
defendant, was interested in both those tran
sactions, while trustee for the company, and
conseq uently knew the tract was not worth
Sc an acre, as he represented when plaintiffs
took those shares OF capital stock.
ANumber of Other Discrepancies.
'"Instead of 10000 acres of titled lands,
as defendant represented" the affidavit
saws, there were but 1,721 acres of such
land; that regarding the Wyoming ranch,'
it contained but 1,721 acres of titled land,
and the 'Hutton's big Laramie ranch had
but 6, 100 acres of such land in it, and that
the company had no good or valid title to
the lands, which were not free from liens
and encumbrances, as defendant repre-
sented, but, on the contrary, were encum-
bered to the amount of S120, 900 in case Haas
and Haley succeeded in placing them in a
company Tor not less than $3.50, 900,
and the Laramie Plains Land and Cattle
Company had in them only an undivided
one-half interest; that the railroad lands
were not good grazing lands, but were al
most entirely destitute of grass or water,
and were practically worthless to the COM
pany or anyone else; that the possessory
rights and improvements of the Fort Sand
ers Reservation we're never worth over
S., 900, and that defendant afterward, by
some mysterious means, purchased the same
from the assignee OF the company for $3.50;
that the profits from the company's property,
while under defendants management, never
equaled its current charges and expenses,
and no dividend was ever declared or paid