The record-union., 1894-09-11
BIG LAND FRAUD.
SERIOUS CHARGES AGAINST A
RESIDENT OF TEXAS.
Accused of Swiudling Numerous Peo-
pie Out of Large sums
of Money.
Special TO the REcoRp.uNrox.

New YORK, Sept. 1O.-A ccording to al
legations contained in a complaint filed
III the United States Circuit Court, Judge
Lacombe will be called upon to morrow
to take action with the object of prevent
ing the continuance and final consum-
nation of what is, characterized as one of
the most colossal frauds in modern times.
The chief actor in this 9scheme, John C.
Beatty, is an American who at present
resides in Texas. His victims include
prominent New Workers and other resi-
dents of the United States and Canada.
How far the scheme has succeeded has
not yet been determined, but one victim,
James ii. Beatty, President OF the Ger
man and Northwest INSURANCE Company
of fOntario, Canada, and OF the Federal
Life Assurance Company of Hamilton,
Ont, swears that he has lost S37, 800. and
it is charged that the goal of John C.
Beatty's ambition was to fraudulently
obtain possession OF s., 100000.
The complainants in the case, in addi-
ton to James IL. Beatty, are James c.
Aiken, Benjamin H.. Doane and Leo
Wormser OF New York. The defendants
are Frank a. Miller, c. IL. Dow, S. N
Wood, +. Z. Earnest, Frank Crouch, j.
III. Brown, G. w. Kittredge. j. w.
Carlisle, L. j. O'Donnell OF California
and John c. Beatty of Texas. all di-
rectors or trustees of the Colorado Irriga-
ton Company.
The company was first organized in
January, 1891, under the name of the
Arizona and Sonora Land Irrigation
Company, but the title was changed on
January 9, 1893, TO It's present form. Its
ostenSible object was to carry on the irri-
CATION of land in California, Arizona,
Lower California and Mexico. Its capital
stock was S7.50O,000, divided irto l50,O 600
shares ofS50 each.
According to tho complaint, however.
the company was organized by John G..
Beatty for his sole interest and benefit,
and to enable him to realize s., 900, 600 on
tract of worthless land containing -
100000 acres on the Alta River, in this
Province of Sonora, Mexico, to which it
is said he did not even have title. Hav-
ing organized the company, and obtained
the issue of the capital stock by alleged
fraudulent and fictitious statements, it is
charged that John c. Beatty went about
negotiating with the object OF transfer
ring the land to the company for the
whole of its capital stock, or s., 900, 900.
The land formed part Of what is known
i'll Mexico as the Jeeher concession, the
meaning of which is not explained in the
complaint, but it is 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
G. Beatty. ready and willing at all times
to carry out his behests. The President
of the board was Charles II. Dow, and by
vote of the majority ii was agreed to
transfer 100000 shares of the company to
John &. Beatty for 81, 800, 600, as soon as it
was possible to carry out the transfer.
The directors, being Mr.. Beatty's fac
totums, made no effort to Investigate
either the character of the land or the
1i1aar fNf Mt v1e, 4,
To further facilitate matters, Beattys
Board of Directors decided TO appoint
him Manager, with exclusive control of
affairs, at q salary of SO, 600, while +. a.
Miller, concerned with Beatty, was elect
ed Vice-President of the company, and
also given salary OF $4,000 year. both
OF Which transactions are charged to be
illegal. The first transfer of stock was
made on January TO- 1894, by the Board
of Directors, when $4,000 shares were
transferred to John c. Beatty on the basis
of 800, 600 acres of land, or one share for
ten acres. John G. Beatty himself pre-
sided at this meeting, and against the
protests of James II. Beatty a stock
holder, it was agreed to issue $4,000 shares
of new stock.
In March last James II. Beatty obtained
from the Supreme Court of the State of
New \ ork mandamus requiring the
directors to show him The books, but
JONI y. DSAbLy WSlL 10 SdlllOTuld, YAK
ing the minute books OF the transactions
with him, and James III. Beatty was un-
able to obtain the evidence he wanted.
The known assets of the company did
not exceed $685. 900. 1t has had no bank
account since last October, and was
obliged to give up its office at GO
Broadway, this city, last July, for nom
payment of rent. Its offices in Philadel-
phia, Washington and other cities had
previously been given out, after the
country for miles had been flooded with
pamphlets declaring the land to be an
Eldorado.
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 direct
ors on the one side and John G. Beatty on
the other was fraudulent and ultra wires,
and that the whole transaction was void.
An injunction is asked for to prevent
part of the stock or certificates except un-
der direction of the court.
James HI. Beatty, the Canadian, pur-
chased 10000 shares and paid up S37 800,
and each one OF those mentioned as COM
plainants hold sos shares. At the pres
ent time it is impossible to ascertain how
much money has been paid into the COM
pany, but all that has been paid, it is de-
clared has gone into the pockets of John
G. Beatty. By an international agree
ment the waters of the Colorado River,
except under certain conditions, cannot
be used for purposes OF irrigation.
Two Attempts at Suicide.