The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-09-11
Gigantic SWindle Meant to Rake
in $7,5OO.OOO.
John G. Beatty Of Texas in q
Fair Way
TO REAP THAT MUCH.
His Scheme Punctured Just
in Time.

fled in the United States circuit
court, Judge Lacombe will be called
upon to-day to take action with the
object of preventing the continuation
and final contamination of what is
characterized as the most colossal
fraud in modern times The chief
actor in this scheme is John
g. Beatty. an American, ut present
residing in 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 deter
mined, but one victim, James Ell.
Beatty, president Of the German and
Northwest insurance company of On
tariO, Canada, and of the Federal life
insurance company Of Hamilton, Ont,
swears he has lost $37, 500 and it is
charged that the goal Of John O.
Beatty's ambition was to fraudulently
obtain possession of $500, 600. The
complainants in the case in addition
to James r. Beatty are James G. Ak
en- Benjamin e. Doane and Leo
Wormser of New York. The defend
ants are Frank A. Miller, Charles II.
Dow, Samuel N Wood, Finis P. Earn
est, Frank Church, J. II. Brown, Chas.
We Kittredge, james W. Carlisle,
Thomas u. O'DOnneu Of California
and John c. Beatty OF Texas, ali
directors or trustees Of the Colorado
River Irrigation company.
The company was first organized on
January z, 1892, under the name of
the Arizona and Sonora Land and
Irrigation company, but the title was
changed on January 8, 1893, to it's
present form. It's Ostensible object
was to carry on the irrigation Of land
in California, Arizona, Lower Cali
fornia and Mexico. It's capital stock
was 81 500. 600, divided into $50, 900
shares of $50 each
According to the complaint, how
ever, the company was organized by
John O. Beatty for his sole interest
and benefit, and to enable him to real
lie 81, 800, 600 on a tract Of worthless
land containing I, 500, 600 acres on the
Altar river in the province of Sonora,
Mexico, to which, it is said, he did not
even have title Having organized
the company and obtained the issue
of capital stock by alleged fraud
and fictitious statements, it Is charged.
John c. Beatty went about negotiat-
ing with the object of transferring
the land to the company for the whole
OF its capital stock, or 81, 500, OOO- The
land formed part of what is known in
Mexico as the Jecher concession, the
meaning of which is not explained in
the complaint, but it is charged that
John @. 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 president
of the board was Charles II. Dow, and
by a vote Of the majority IL was
agreed to transfer $50, 900 shares Of
the stock to John c. Beatty for
s., SOC, 900 as soon as it was possible
to carry out the transfer. The direc-
tors 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.
To further facilitate matters Mr..
Beatty's board of directors decided to
appoint him manager, with exclusive
control Of the affairs OF the company,
at a salary Of SO, 600, while Frank A.
Miller, concerned with Beatty, was
elected vice president Of the company
and also given a salary Of Sc. 900 a
year, both of which transactions are
charged to be Illegal The first actual
transfer Of stock was made on jan
uary 10 by the board Of directors.
when 81, 600 shares were transferred
to John G. Beatty on the basis Of 500
acres Of land or one shase for ten
acres. John G. Beatty himself pre-
sided at this NEE ting, and against the
protests Of James H Beatty, a stock
holder, it was agreed to issue SO, 600
shares Of new stock.
The known assets of the company
did not exceed $40, 900. 1t had no bank
account since last October, and was
obliged TO give up its Office at GO
Broad street, this city, last July, for
non payment of rent It's Offices in
Philadelphia, Washington, Denver
and other cities had previously been
given up, after the country for Males
around had been flooded with pfos-
pectuses and pamphlets declaring the
land an Eldorado. The only place
where the company now has an Office
As in Providence, f. L
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 agree
ment the waters OF the Colorado river,
except under certain conditions. can
not be used for purposes Of irrigation