The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-03-27
4 SERIOUS CHARGE.
Up. Gleason's Suit Against H.
". Wheeler and Others.
- AIMS HE WAS DEFRAuoED.
wrs. clapsadie Renews Her Claim for
Breach Of Promise-Aiieged Eva
sion of Execution.

In a sui. begun by Deputy Collector OF
Y..ernat Revenue James +. Gleason
.ss,.s n. ". Wheeler and the Pacific
~~~,uage Company in the superior court
--ss.svdsv TO get back xs.Jo worth OF
ys-.-,,ssory notes and valuable Seattle
,s.onertv. GLEASON charges Wheeler with
lag looted the Commercial Natfoaal
senk OF large sums Of money
S.ssasoa states IN his complaint that
yhseler. through false and fraudulent
concentrations. sold to him on August
:. ls4 one hundred shares Of the cap
a., stock OF the Commercial National
ssrk az the par value OF 500 each. G,ca-
son In payment OF the stock claims to
hsye given Wheeler eight promissory
,o,sx SIX for 500 each and two for s. eco
s.ch ali bearing the date of August =.
,s..s and made payable four years after
d.,e Another note for $500 payable
~ the Commercial National bank ninety
ssvs after date, he says. was given TO
Wneeler together with deeds 10 lots In
b.eck 10. IN block y. and In block CA.
~ Central Seattle The notes. he ssys.
werr secured By fifty shares OF the puT-
chased stock
f;Iaason says that Wheeler made nsny
fraudulent representations to him. Among
ether things Il is claimed Wheeler Iep-
resented 20 Gleason that the actual value
81 the stock Ia the bank was - per cent
sboye par. that the bank had q reserve
81 uge6 that the securities held by the
tark against the National Investment
csmvsny. the Puget Sound Lime Com
usns. The American Investment Com
rzny TIE Sidney Hotel Company and
,as /. II. Wheeler. ". T. Chalk and D.
T. Deany loans, were as good as gold
ana every dollar collectible. and that
ever other security OF the bank wss
fst class: that the bank was tn a first
class financial and prosperouss-condition
and was doing a paying and profitable
business. Wheeler, who was president OF
the bank, further represented to Giea-
son according TO the complaint, that he
was obligated 10 the bank in the sum
Of ESQ. and that the note for s.. 800 given
b. the plaintiff 10 the bank was given
for the purpose OF taking up and assum-
ing the obligation and that he would
not draw any funds whatsoever frC m
The hank upon the note. Wheeler also
promised to and represented that he
would remain In the bank and retain at
least $1,000 worth of stock.
Gleason alleges the truth of the matter
10 be that at the time he purchased
the stock 1t was absolutely worthless.
having little or no value. The bank. he
says. had no reserve fund, and the obli-
cations of the National Investment Com
pany. the Puget Sound Lime Company,
the American Investment Company, The
Sidney Hotel Company. the Pacific Man
ufacturing Company and the Wheeler and
Chalk loans were worthless, while the
Denny loan was of little value. III. w.
Wheeler and his brothers, l.. HI. Wheeler
and Lee Wheeler, were. Gleason says,
the principal owners and holders OF the
stock In each of the corporations. and
the loans made by H. w. Wheeler as
president were made with the knowledge
that they were insolvent and their Sect
rites of no value whatsoever. and Tor
the purpose of deriving the benefits of
loans personally through the corpora
tons, land had thereby cheated. looted
and defrauded the bank OF large sums
OF money and caused the same to sus-
pend business. The bank. according
10 Gleason. was about 10 suspend AT the
time he purchased the stock, and did
saspend soon afterwards.
Wheeler, II Is alleged. knew all of
rese facts. lie was not obligated, lt is
claimed. to the bank upon his promissory
note in the sum OF 800. as he had stat
ei or In any sum greater than si.Aa.
whkh note Wheeler took up and With
drew $40 from the bank. replacing II by
the S.500 note drawn by Gleason in IA
sof Of the bank.
The Pacific Mortgage Company. ac-
eoring 10 the complaint. was organized
by Wheeler for the purpose of covering
his Illegal transactions and for the furth~
or purpose of preventing his creditors
from reaching property conveyed TO the
Pacific Mortgage Company by him and
held by the company in disguise ard in
The place of the defendant on Novem-
Der Is, 1894, Gleason states. Wheeler con-
yeyed the lots which he gave 10 him as
part payment for the stock to the mort
sage company.
victim OF fraud. Gleason claims TO have
demanded the return of his property and
notes. Offering TO return the stock he
held. Wheeler failed TO accept Gleason S
offer and is now negotiating. II Ia said.
10 place the notes given him hy Gleason
IN the hands Of innocent purchasers. ard
the mortgage company Is trying 10 get
I'D OF tho real estate. Both Wheeler ard
the mortgage company. IL is alleged. are
insolyent
Gleason wants them cniOined from
selling the notes and the property. and
asks the court 10 compel Wheeler 10
turn over the notes To the custody Of
the court until the final determination
OF the action. II Wheeler has already
negotiated the notes. the plaintif asks
the case Is finally brought 10 'he atten-
ton 81 the court Gleason desires 10 have
the notes and property given 10 WI selcr
Returned. also the s., 800 note given 10
TIE bank