The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1894-09-15
COLOSSAL SWINDLE.
New York and Canadian Capital
lists Duped by an |mpostor.
ONE VICTIM HAS LOST S35,5OO
The Chief Actor In the Scheme Is John
O. Beatty, q Resident of Texas
Ran Away With the Books.

NEW YORK, Sept. 10-According to
allegations contained In complaint
filed in the United States circuit court,
Judge Lacombe will be called upon to-
morrow to take action with the object
OF preventing the continuation and
final contamination of what IL charac-
terized as one of the most colossal
frauds in modern times. The chief
actor In this scheme is John e. Beatty.
resident of Texas. His victims in
Guide prominent New Workers and
other residents of the United States
and Canada. How far the scheme
has succeeded has not yet been
determined. James H. Beatty. presi-
dent of the German and North west In
surance Company Of Ontario. swears he
has lost $S5, 800. and 1t is charged
the goal OF John C.. Beatry's ambition
was 10 fraudulently obtain Possession
of $3.50, 900. The coinplainants In the
case, in addition 10 James H. Beatty,
are James G. Akin, Benjamin H.
Doane and Leo Wormser of New York.
The defendants are of Texas, all direc-
tors q trustees of tho Colorado River
Irrigation Company.
Boatiy's Alleged sche
The company was first organized In
January, 1891. under the name of the
Arizona and Sonora Land and Irriga-
-ticn Company, but the title was
changed ON January 8, 1893, to its
present form. Its ostensible object was
10 carry OH the irrigation of lands In
California, Arizona, Lower California
and Mexico. The capital stock was
81, 500, 900, divided into 100. 900 shares
of $50 each. According to the COM
plant, however, the company was Of
ganized by John &. Beatty for
his sole interest and benefit
aud TO enable him to realize
$75O,OOO on q tract of worthless land
containing 150, COO acres on Alta river in
the province OF Sonora, Mex, to which
it is said he did not have any title.
Having organized the company and
obtained an issue of capital stock by
alleged fraudulent and fictitious state
ments, it is charged that John {.
Beatty went about negotiating with
the object of transferring the land to
the company for the whole of Its cap
stock, $3.50,
The land formed part of what is
known In Mexico as the Jecher conces.
sion, the meaning of which Is not ex.
planned ia the complaint, but it is
charged that John e. Beatty had no
title. The board of directors, 1t Is
charged, were mere tools and creatures
of John Z. Beatty. The president of
the board was Charles H. Dow, and by
o vote of the majority II was agreed
to transfer 250.O0O shares of
the company to John &.
as it was possible TO carry out the
transfer. The directors. being Beatty's
factotums, made no effort to investi-
gate either the character of the land or
the genuineness of Beatty's title to 1t.
10 further facilitate matters, Beatty's
board of directors decided to appoint
him as manager, with exclusive con-
troll of affairs, at a salary of $4,000,
while Flank A. Miller, concerned with
Beatty, was elected vice president Of
the company and also given salary
of Sc, 600 year, both Of which tran
sactions are charged TO be Illegal.
Ran Away With the Books
The first transfer of stock was made
il January, 1894. by the board of dlrec-
tors, when $4,000 shares were trans
ferred to John q. Beatty on basis of
| sc. 900 acres of land, or one share for 10
acres. John &. Beatty himself pre-
sided NJ this me =ting, and against the
protests Of James II. Beatty. stock.
holder, 1t was agreed to issue ST. 600
shares Of new stock.
In March last James H. Beatty Oh
| tanned from the supreme court Of the
state of New York mandamus requir-
Ing. The directors 10 show him the
books. but John &. Beatty went to
Californis, taking the minute books Of
! transactions with him, and James H.
Beatty was unable to get the evidences
he wanted concefning the title of the
lJecher concession. 4S
| The known assets of the company did
| not exceed $40, &C., It. has had no bank
account since last October, and was
Obliged to Give npi it's office at 6e Broad
way last July for non-paymentsof rent.
| It's. offices in Philadelphia, Washing
| ION and other cities had been pre-
|. viousiv given up, after the country for
miles !. round had been flooded with
PAIN phlets deciariug the land an FL
I dorado. :, ,j',', c.,@>, ..s~.
The property In California consists
of cha,tels worth Sa6. 300, which John
G. Beatty, BY. a Till of sale. alleged to
J he iraudulent. transferred to En-
| sinesr Charles r. lockwood without
any consideration. In addition to this
lockwood. IL is. said. is still drawing
$500 q month. in wages for doing
Aothing, aud the company owes him
SIC, 600. although he never did any
thing for it,. @
I 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
So, 600 shares Of stock was spurious and
illegal.
YNnpr A STNQ uNIGR ALTON