The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-09-13
ANGLING FOR SUCKERS.
SEVERAL CAUGHT BY A WESTERN
IRRIGATION SCHEME.
Complaint Filed, Charging All Sorts o
Bad Things Against Some Western
Men Who Caught Capitalists
For Big Wads of Money.

New YORK, Sept. lO.-According
to the allegations contained IN COM
plaint fileo in the United states en-
emit court, Judge Lacombe will be
called upon to take action with the
object of preventing the continuation
and final contamination of what is
characterized as one of the most
coIossal frauds of modern times. The
compIaint alleges that the chief char
scter in the scheme, john e. Beatty,
an American, at present resides in
Texas. His victims include promi-
nent New Workers and other residents
nj the United States and Canada
How far the scheme has succeeded
has not yet been determined, but one
victim, James H. Beatty, president OF
the German and Northwest Insurance
company of Ontario, Canada, and OF
the Federal Life Assurance company
ot Hamilton, sWears he has lost $751;
600. and it is charged that the goal OF
John G. Beatty's ambition was to
frauduleutly obtain possession OF
~ 800 900. Ehe complainants in the
case. in addition to James h. Beatty,
are James G. Aiken, Benjamin h.
Doane and Leo Wormser OF New YORK.
The defendants in the case are
Frank A. Miller, Charles II. Dow, f.
p, Ernst, Samuel N. Wood, Frank
Church, James II. Brown, Charles w.
Kittred ge, James w. Carlisle, Thomas
j O,Donnell of California, and John c.
Beatty of Texas, all directors or trus.
tees of the Colorado River Irrigation
company.
ON Ian. 7, 1892, under the name of The
A rizona and Sonora Land Irrigating
company, but the title was changed
on Jan. 8, 1893, to its present form.
Its ostensible object was to carry on
the irrigation OF land in California,
Arizona, Lower California and Mex
leo. Its capitrl stock was ST $500, 900,
divided into 10000 shares of $500
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 81, 100000 on tract of worth
less land containing $500, 900 acres
on the Altar river, in the prov
ince of Sonora, in Mexico,
to which, it is said, he
did not even have title. Having
organized the company he obtained
the issue of the capital stock by al
Legged fraudulent and fictitious state
ments. 1t is charged that j. Z.
Beatty went about negotiating with
the object of transferring the land to
the company for the whole of its CAPT
tai stock, or 81, 100000.
The land formed part of what is
known in Mexico as the Jecker con-
cession, the meaning of which is not
explained in the complaint, but is
that John G. Beatty had no
title to it. The known assets of the
Company did not exceed $4,000. 1t
no assets and was obliged to give
up it's office at 66, Broad.
street, this city, in last July for noa-
of rent Its offices in PhilL.
deiphia, Washington, Denver and
other places had previously been
given up, after the country for miles
around had been fic )ded with pros
pectuses and pamphlets declaring the
land was an Ell Dorado. The only
place where the company now has an
office is in Providence, r. |. Judge
Lacombe will be asked to appoint q
receiver to take charge OF the affairs
of the company.
James II. Beatty, the Canadian,
purcha led 10000 shares and paid S57,-
900. and each of those mentioned as
held $50 shares. AT
the present time it is impossible to
ascertain how much money has been
paid into the company but all that
has been paid, it 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, can hot be-
used for purposes Of irrigation.