The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1894-09-15
New York and Canadian Capital
lists Duped by an lmpostor.
ONE VICTIM HAS LOST S35, 500
The Chief Actor in the Scheme is John
C. Beatty, Resident of Texas
Ran Away with the Books,

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 ana
final contamination of what l. charac-
terized as one of the most colossal
frauds in modern times. The CHIEF
actor in this scheme is John q. Beatty,
a resident of Texas. His victims in
clude prominent New Workers and
other residents of the United States
and Canada. How far the scheme
has succeeded has not yet been
determined. James II. Beatty. presi-
dent of the German and Northwest In
surance Company of Ontario, swears he
has lost $35, 500, and 1t is charged
the goal or John G. Beatty's ambition
was 10 fraudulently obtain possession
of $3.50, 900. The com plainants in the
case, In addition to James II. Beatty,
are James G. Akin, Benjamin h.
Doane and Leo Wormser of New York.
The defendants are of Texas, all direc-
tors or trustees OF the Colorado River
Irrigation Company.
Beatty's Alleged Scheme.
The company was first organized in
January, 1891. under the name of the
Arizona and Sonora Land and Irriga-
ton Company, but the title was
changed on January 8, 1893, to its
present form. Its ostensi5le object was
10 carry on the irrigation of lands in
California, Arizona, Lower California
and Mexico. The capital stock was
81, 500, 600 divided INTO 100, 900 shares
OF $50 each. According to the COM
plant, however, the company was or
ganized by John Z. Beatty for
his sole interest and benefit
and 10 enable him to realize
$3.50, 900 on tract of worthless land
containing $50, 600 acres on Alta river in
the province OF Sonora, Mex, TO which
il is eaid 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 Z,
Beatty went about negotiating with
tile object of transferring the land tC
the company for the whole OF its cap
stock, $3.50, 600.
The land formed part of what il
known in Mexico as the Jecher concss
sion, the meaning of hich is not eX
planned ia tile complaint, but it Ii
charged that John &. Beatty had M
title. The board of directors, it il
charged, were mere tools and creatures
Of JOnn q. Beatty. The president o
the board was Charles II. Dow, and by
vote of the majority il was agree
to transfer 250,O shares o
the company To John G
Beatty for $75O,O00 as sool
as it was possible TO carry out tn
transfer. The directors, being Beatty
factotums, MADE no effort to lnvesti
gate either the character of the land o.
The genuineness of Beatty's title to it
To further facilitate matters, Beatty
board of directors decided To appoln
him as manager, with exclusive con
troll OF affairs, at salary of SIS, 00t
while Flank A. Miller, concerned Wit
Beatty, was elected vice president {
the company and also gwen IA salar
of $4,000 year, both of which tran
sactiOns are charged To be illegal.
Ran Away with the Books.
The first transfer of stock was mad
in January, 1894, by the board of dire,
tors, when $4,000 shares were trans
terred to John Z. Beatty ON basis
5000 acres of land, or one share for ]
acres. John Q. Beatty himself pr
sided at this meeting, and against I'll
protests of James Ii. Beatty, stool
holder, 1t was agreed to issue 56, OC
shares of new stock.
Tn March last James Ii. Beatty 81
tanned from the supreme court OF I'll
state Of New York a mandamus requi
ing the directors 10 show him I'll
hooks. but John e. Beatty went
California, taking the minute books
transactions with him, and James
Beatty was unable 10 get the eviden'
he wanted concerning the title of II
Jecher concession.
The known assets of the company dl
not exceed S4O 900. 1t has had no ban
account since last October, and WI
Obliged to give upits office at sc Broa'
way last July for non-payment of rem
It's offices in Philadelphia, Washin
ton and other cities had been pr
viouslv given up, after the country fl
miles around had been flooded wit
pamphlets declaring the land an /
dorado.
The property in California consis
of chattels worth $50, 900, which Jot
G. Beatty, by a bill of sale. alleged
be fraudulent, transferred to II
pineer Charles r. lockwood witho
any consideration. In addition to th
Redwood, it is said, is still drawn
$500 a month ia wages for doll
nothing, and the company owes hi
$4,000. although he never did an
thing for 1t.
Judge Lacombe will be asked to q
poInt a receiver 10 take charge of I
R,fx, Of tho comnanv He will n