Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-01-20
THEY DON'T WANT 1T.
INDIANA BUYERS SUE ron RELIEF
FROM MsRL PURCHASE.
gOW THE DEAL WAS EFFECTED.
barge That When n Chemist WINS
sent 10 Procure Samples for
Analysis the Specimens Were Ex-
changcd-Ofhcr Representations.

state are defendants. was instituted In
tAe United States Circuit Court yesterday
afternoon.
James Q. Barcus. Henry a. Huston.
Richard A. Edwards. and John NJ
Thompson. all OF Indiana. are the com
claimants. while the defendants are Eras-
mus W Gates, Joseph p. Hubbard
Robert 5. Craig, Writ w. Lefew. Thomas
ID Henley. the Virginia Mari Phosphate
Company, and the American Plant-Food
Company.
The suit is brought by Judge Leonidas
D. Yarroll OF Washington. and John b.
Sherwood. ESQ. OF indianapolis. as So
llcitors for the plaintiffs. While Il does
not so appear In the papers. it is under
stood that the amount involved is about
$4,000
DETAILS OF THE TRANSACTION.
The bill fled Is quite a voluminous
paper making over thirty printed pages.
and gives in minute details tho circum-
stances and representations under which
certain property was sold to the com
p.alnants. who claim that it did not
come up to what they had reason TO ex-
pcct that IL would The property In It'll
cation is the well-knOwn NOrthberry
tract Of 99i 26-l00 acres. situated in New
Kent county. about three miles from
Tunstalls station This tract Of land,
the bin sets forth was purchased some
years ago by the Virginia Mari Phos-
uhate Company Of which the defendants
and several other Richmond capitalists
were stockholders. with the belief that
the lands contained rich phosphate de-
n.a.t t...s.
l,9i they had ceased TO work the land,
having found 1t TO be entirely worthless.
So far as yielding any fertilizlng ma
tenai in sufficient quantities for COM
mercial purposes. without the mechanical
mixture of additional fertilizers. il Is
further charged that the defendants knew
from analyses, made by competent chem
lists. that the yield Of phosphate and
other fertilizing material amounted only
10 about two parts in the hundred, and
that the land was suitable for farming
purposes only.
BOUGHT AT EXCESSIVE PRICE.
The complaints allege that they were
induced by Mr.. Henley. as agent of the
defendants, TO purchase the tract of land
at an excessive valuation; that Mr.. Hen
ley. MS agent was authorized by the
company TO DO several things and make
several representations TO the plaintiffs
10 induce them 10 enter into an arrange
ment for the purchase Of the lands. The
principal representation IT is alleged, was
10 the effect that the Northberry tract
contained large and ineXhaustible de-
posts of natural phosphate and that all
that was necessary was to dig the same
dry, and sift. and bag Il. and that It
was then ready for commercial purposes
containing from II TO 16 per cent of phos-
phoric acid. Upon the strength of these
representations. and upon analysis made
by eminent chemists in New York and
Cincinnati. which are alleged 10 have
been obtained under circumstances that
are sharply criticised Mr. Henley, the
bill continues. associated with himself in
the enterprise as q joint promoter James
y. Huston. a prominent banker and
wealthy citizen of Indiana. who had been
the Treasurer of the United States. Mr..
Huston brought about the meeting be
tween the comDlainants and Henley, and
undertook TO guarantee the truth OF all
statements made by the latter.
THE REPRESENTATIONS MADE.
At a meeting held January /, 1895, the
following representations are charged in
the bill 10 have been made by Mr.. Hen
ley:
That on said Northberry tract of land
on the Pamunkey river. in the state |
Of Virginia. above described, were large |
ami inexhaustible deposits OF natural
phosphate and that all that was neces-
sary was TO dig the same, dry and sltt |
and bag IL. and that il was then ready /
for commercial purposes, without fur-
Their fertilzng mixture, and Contained !
from u 10 l6 per cent. OF phosphorlc |
acid: that no treatment by mechani- !
cal mixture Of any eXtraneous fertuizing |
material was necessary to cause it TO |
sell in the market; that these state /
ments had been learned by actual ex-
perience Of the owners; that said /
Northberry tract was owned by the said
n. w Gates. Joseph L. HUBBARD |
Richard =. Craig. and Writ w. Lefew |
that all said persons were gentlemen
Of wealth and high social position in the |
city Of Richmond. Va; that said
Erasmus W. Gates was wealthy
Wholesale grocer, and that said Hubbard
Craig, and Lefew were active business
men. that all these persons were
honorable gentlemen, but so actively |
engaged In their several lines of bust
ness that they were unable TO attend /
personally to the development of the
phosphate beds on said real estate and
for that reason desire TO have others
interested with them Jointly In the de-
velopment Of the same who would give
the necessary personal attention, but
that they so priced the property that
they were unwilling 20 sell out their
entire interests. but in order to have |
persons interested who could give the
time and attention to the working and
development of the properties were
willing 20 sell q seYen-ffteenth interest,
retaining for themselves an eight-ff-
teenth interest, provided a corporation
could be formed on the basis Of the
capital stock Of the same being owned
in that proportion between them, and
those who should become interested
with them; that they would agree, and
did agree that for the first year that
the officers and majority Of directors Of
said proposed company, formed on such
basis. should be composed Of such per-
Sons who should become interested; pro-
vided, however, that said Henley, who
was representing and who should rep
resent them. should be the general mana
ger. and as such have entire and COM
piete control and possession Of the pro-
perties subject TO directions Of the oft-
GERS and directors as TO all matters eX-
cept the direct management OF the
mines.
CHEMIST SENT FOR SAMPLES
Thereupon< the compliments accepted
the offer OF Henley 10 show the lands 10
and assist the chemist In obtaining sam
pies. and Mr. Henry a. Huston,
now holding the Office of State Chemist
Tor the State OF Indiana, was sent by
them 10 ascertain the condition OF the
soil The samples with which MI. Huston
returned 70 Indiana are not believed
according 20 the bill, TO be the same that
he drew from the land. and 1t is charged
by compiainants that by some means
which they cannot explain. these sam
Pies were changed without Mr.. Illusions | ,