The times. [volume] (Richmond, Va.) 1890-1903, 1897-01-20
GIGANTIC SWINDLE ALLEGED.
A Sweeping Bill Of Complaint Filed in
The United States Circuit Court.
WORTHLESS LANDS MADEA GOLD MINE
by the Alleged Clever Manipulation OF MI
Thomas II. Heniey-Former United
state. Treasurer James y. Hus-
ton in the Deal.

A bill Of complaint was filed yesterday
IN the Circuit Court of the United States
for the Eastern district Of Virginia oy
James Q. Barcus, Henry A. Huston, Rich
ard 4. Edwards. and John VI. thompson
against Erasmus W. Gates, Joseph I.
Hubbard. Robert L. Craig, Writ W. Le-
few. Thomas B. Henley, the Virginia
Mari Phosphate Company, ana the Amer
ican Plant Food Company.
The bin alleges ,hat on October ID.
1854. and up TO February o, 1895, the Nir-
ginia Mari Phosphate Company was the
owner of a tract of land IN New Kent
county. near Tunstalls Station. known as
Northborrv. and that on October To- lAl'
the defendants above named. and Mann
S. Quarles were the stockholders and
directors Of the company; and that on
said day the company ceased all active
operations. owed 10 indebtedness, and
lo.- said real estate as sole and only as
set on behalf of It's stockholders.
Lao ..-nE WORTHLESS.
The bin then goes on to allege that the
said defendants having worked and oper-
aled the lands mentioned had found them
entirely worthless and barren OF the rlch
phosphate deposits they were thought
10 have contained. that on october l''
1891. the defendants We're desirous OF haN-
ing sale made of the said lands ana
that they knew a fair cost valuation or
the lands would not exceed $40 per acre.
The deed goes on to allege that tho
stockholders formed q scheme 10 sell the
lands at an excessive valuation, and that
Thomas b. Henley was empowered to act
as agent. That Henley employed tho SER
vices Of eminent chemists of New York
and Cincinnati 10 take samples from
different points on the said land. That
Henley accompanied the chemists, and
after the samples We're obtained. while
the chemists were taking their meals ana
waiting for train. Henley changed the
samples. substituting some OF his own
preparation, which falsely showed the
soil 10 contain from u to l6 per cent. OF
phosphoric acid.
The bin alleges that Henley, with these
false samples In his possession assoc
catcd himself with James y. Huston.
prominent banker Of Indiana, and for-
mor Treasurer of the United States that
said Huston brought about meeting be-
tween the complalnants and Henley IN
indianapolis on November l5, lNi say
ing he would guarantee the truth OF all
of Henloys statements
The bill goes on 10 alege that the
,c.rlt ~ This rnoetine, was that other
..r,rfoe of tho Nortbberrv tract were
obt,fr.d and misc ones srib. tituted for
them by Ieiley.
AGREED TO SUBSCRIBE.
Upon Hcnlcy's representations, says the
hin the complainqnts agreed 10 SUBJ
scribe 20 stock In a new company. which
was formed. the name OF which was
10 be the American Plant Food Com
panv and It's capital N.u00D.
Tho Iiu aoes ON 10 state that a char
for for The connanv was obtained by
Huston on January 10 1895. under the
Iows Of Vtrrinia naming Huston as
rrosidarf and Henley general manager.
Tine charter provided that n1thing but
money should De received in payment OF
sntscriDtiors to stock.
Further. -ha bin recitos that payment
was duly made for such stock sltscrib-
"a for by the complalnlnts. and that
later. TO enable the defendants 20 OBJ
tain from the American Plant Food COM
pauv AM the preferred ana common stock.
The directors of the Virgiuil Marl PhCs-
phate COMPANY passed Il resolution con-
vovlnc the Nonhbery tract 10 Thomas
B. Henley. trustee. for $4,000 and other
valuable considerations without the
kuov,ledgo of the comulainants WHO
charge that Henley acted AS trustee for
the Nirciril Narl Phosphate COMPANY
The hfl further saws that az q meet
ing aotveon Huston. Gates. and others
held I'm Richmond Va. the rights Of
the comnlainants We're wholly disregard
3D. and an the fraudulent acts Of Hem
Icy were confirmed. and each one know
frr thrf .Ia American plant Food Com