The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-09-11

Lacombe will be called upon tomorrow
to take action with the object Of pre-
venting the continuation and final con.
one of the most colossal frauds in
modern times.
The chief actor in this scheme, John
c. Beatty, is an American, who at pres
ent resides in Texas. His victims in
tclude prominent New Workers and
other residents of the United States
and Canada. How far the scheme has
succeeded has not yet been determined
but one victim, James H. Beatty, presi-
dent of the German and Northwest In
surance company Of Ontario, Canada
and of the Federal Life Insurance COM
pany of Hamilton, Ont, swears he has
! lost $37, 1900, and it is charged that the
goal of John G. Beatty's ambition was
to fraudulently obtain possession of ST.
100000. The compliments in the case,
| in addition to James H. Beatty are
James c.. Akin, BENJAMIN IL. Doane
and Leo Wormser, of New York.
| The defendants are Frank A. Miller,
Charles H. Dow, Samuel N. Wood, F
| p. Earnest, Frank Church, James N.
Brown, Charles w. Kittridge, James w.
| Carlisle, Thomas J. O'Donnell, of Cali
fornia, and John C. Beatty, of Texas,
all directors or trustees of the Colo
RADIO River Irrigation company.
For His Sole Interest.
The company was first organized on
January z, 1891, under the name of the
Arizona and Sonora Land and Irriga-
ton company, but the title was chang
ed on January 8, 1898, to its present
form. Its ostensible object was to
;,,.tr Of 1or, In, Go1i
fornia, Arizona, lower California, and
Mexico. It's capital stock was $780,
600, divided into 10000 shares of $50
each.
According to the complaint, however,
the company was organized by John G.
Beatty for his sole interest and benefit
and to enable him to realize $7,500,000
on tract of worthless land contain
ing 1900 600 acres on the Alta river in
the province of Sonora, Mex, to which
it is said hecdid not even have a
title.
Having organized the company and
obtained the issue of the capital stock
by alleged fraudulent and fictitious
statements, it is charged John c..
Beatty went about negotiating with
the object of transferring the land to
the company for the whole of it's capt.
tai stock, or $500, 900. The land form
100000 go
the Jecher concession, the meaning of
which is not explained in the COM
plant, abut lit sis charged that John c.
Beatty had no title to it. The board of
directors. it is charged, were then,
as now, the mere tools and
creatures of John c. Beatty,
ready and willing at all times
to carry out his behests. The presi-
dent of the board was Charles H. Dow,
v1d hu q nj
agreed to transfer 900 shares of the
company to John c. Beatty for $780,
900 as soon as. it was possible to carry
out the transfer The directors, being
Mr.. Beatty's factotums. made no effort
to investigate either the character of
the land or the genuineness OF Mr..
Beatty's title TO it.
Beatty Plays Poo Bah.
To further facilitate matters, Mr..
Beattys board of directors decided to
appoint him manager with exclusive
control of affairs at salary of $4,000,
while Frank A. Miller, concerned with
Beatty was elected vice-president of
the company and also given salary of
$4,000 year, both Of which transac-
tons are charged to be illegal. The
first transfer of stock was made on
January 10, 1894, by the board of direc-
tors, when $4,000 shares were trans
ferred to John c. Beatty, on the basis
of 100000 acres of land or one share for
ten acres. John G. Beatty himself pre-
sided at this meeting and against the
protests of James H. Beatty, stock
holder, it was agreed to issue $4,000
shares of new stock.
In March last, James II. Beatty OBJ
tanned from the Supreme court of the
state of New York, mandamuS re-
quiring the directors to show him the
T. 11- t.. ~ - txrx yaf1t TO o1
ifornia, taking the minute books of the
transactions with him and James H.
Beatty was unable to get the evidence
he wanted concerning the title of the
Jecher concession.
The known assets of the company did
not exceed $40, 900. 1t has had no bank
account since last October, and was
Obliged to give up its Office at 66 Broad
way, this city, last July, for non-pay-
ment of rent. It's offices at Philadel-
phia, Washington, and other cities had
been previously given up, after the
country for miles around had been
flooded with prospectuses and pam
phlets declaring the land an Eldorado.
The only place the company now has an
office is in Providence, R. I.
Fraudulent Transfers.
The cornpany's known property in
California consists of chattels worth
$780, 17, which John Beatty, by bill of
sale, alleged to be fraudulent, trans
ferred to the engineer, Charles r. Rock
wood, without any consideration. In
addition to this, lockwood, it is said,
is still drawing $400 a month in wages
for doing nothing. and the company
owes him $4,000, although he never did
for it.
Judge Lacombe will be asked to ap-
point receiver to take charge of The
affairs of the company. He will also
be asked to declare that the issue of
$4,000 shares of stock was spurious and
illegal, and that the contract between
the directors on the one side and John
and ultra vires and that the whole
transaction was void An injunction is
asked for to prevent Beatty from sell
ing or transferring any part of the
stock or certificates except under direc-
ton of the court
James H. Beatty, the Canadian, pur-
chased 10000 shares and paid up $35, 500,
and each one of these mentioned as
compliments held 555 shares At the
present time 1T is impossible to ascer-
tain how much money has been paid
into the company, but all that has been
paid, 1t is declared, has gone into the
pockets of John G. Beatty
BY an international agreement the
waters of the Colorado river, except
under certain conditions, cannot be
used for purposes of irrigation.
Science and experience concur in the
Judgment that DR.. Prices Baking Pow
der is the purest and best ever made.