The morning call., 1893-07-23
ALLEGED FRAUD.
Directors Accused of Mis-
appropriation.
The Affairs of the Bitumen Mining
Company Are Said to Be in
an Unhealthy Condition.

Two suits were filed in the Superior
Court yesterday against |. A. Fairchild.
George NJ Perine. Austin Walrath and
d. Z. Miles, as directors of the Bitumen
Consolidated Mining Company, in which
grave charges are made against the de-
PENDANTS in their adminstratio of the
c0mpany's affairs.
Both suits are brought by directors of
the company. In one the plaintiff is j. Ii.
Swift
The complaint sets forth that the CON-
pany was originally incorporated with
capital of 100000 in shares of 500 each.
In November, 1891. Fairchild, Perine and
Walrath became owners of large interest
in the company's stock, amounting, says
the complainant, to upward of 1909 shares
out of the 5000 cOmpos '-g the capital stock.
Immediately after purchasing this interest
the three defendants are said to have
started In to control the company and to
DO what they chose with the working of
the concern. On November Is, 1892, Miles
bought ten shares in the company and was
at once made director.
IhereupoD, says the complaint, the four
defendants entered into a conspiracy to
cheat the other stockholders by doing cer-
tain fraudulent acts. A number of reso-
Ing to the company were passed, which
eventually cost the company somewhere
about S20,0 900. A list of odd sums paid out,
and bearing dates ranging from November
u, 1892. to June 26, 1888, is first given, all
of which sums are said to have been un-
lawfully withdrawn.
Then the complaint goes on to state that
on October II, 1892, Fairchd. Perine,
Walrath and Miles called directors meet
ing at which they alone were present. and
adopted resolution under pretext Of"
paying Fairchid for his services as
director, and without the authority Of the
other stockholders. Fairchild. vce-pres-
ldent and manager of the company, on no
salary, was voted a sum Of $4,000 for bis
alleged services as director.
MOI content with this, it is alleged that
On November 9, 1892, another resolution
was adopted, whereby Fairchild was
ailowed S2OO month for his services from
November l, 1891, TO April l. 1892, and $50
ihohtn 1oT every month after that date
ana at another directors meeting held
on January 13. 1893, at which Directors
o"l1t ana Bassett were also present, and
III splte OF tnelr vigorous opposition an
otner resolution was adopted whereby
fairchlld was to continue to receive his
salary OF 500 month. This necessitated
"itnarawal Oh the following sums which
were paid over TO Fairchiid: November
II, 1891, $500. and the sum of $3.50 for each
month from December last.
An0tner resolution was adopted in snjte
of the protest of the other stock holders
This was to the effect tn at the directors
should receive $40 apiece for every meet
ing they attended. The complaint urges
that the directors should be restrained
from paying out these sums, and that the
affairs Of the company should he inyestj-
gated.
A similar complaint is filed by Director
A. S. Bassett and the Consolidated Bitr-
minous Rock Company. This compla Mt
further charges that by gross mismanage-
ment the assets of the company have bsen
reduced to 5000, whereas by paper
handling they ought to realize $4,000.