Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1898-03-10


the Company at the best price for
which they could be obtained. The
assignee AYERS that the purchase or
the supplies was left to McKown, and
he purchased supplies to the amount
of about 1890. Instead of purchasing
at the lowest price, he bought them
SO as to obtain for himself commits
sion of per cent, and that commits
sion, which in equity belonged to the
Company, Mckown divided equally
with Clator, so that, as the assignee
AYERS, McKown and Clator hold the
sum of $50 in trust for the assignee,
and ought to be required to pay the
same to him.
Clator was appointed lease boss
later and the purchase of the sup
plies needed was confded to him, for
which he was paid salary by the
COMPANY 1t was his duty to buy
only such supplies as were reasonably
needful. at the lowest market price,
Instead Of so doing, the assignee al
leges that Clator bought supplies to a
very much greater extent than was
needed or reasonable, and it is alleged
that he paid out for supplies at least
$4,000 not necessary or reasonable,
and which were and now are not worth
more than 40 per cent. of the amount
paid for them, thus causing a loss TO
the Company of at least $4,000. which,
in equity, the assignee alleges that
Clator ought to account for.
1.-THE conduct of Clator, which other
wise would be unintelligible, is ex-
planned by the fact" which the assignee
AYERS on information and belief, that
Clator lin fraud of the rights of the
Company bargained that he should
receive for himself a commission upon
the price of all supplies purchased by
him for the Company, which commits
sion was at least 3 per cent. The as
I signee does not know the whole
amount of the supplies purchased by
| Clatoh, but says upon information and
| belief that it was at least $4,000,
and that the commissions SO bar
gained for amounted to at least $500"
and this amount the assignee claims
Clator is in equity bound to account
| for and pay over
On or after June II, 1897, Clator, as
"lease boss" endeavored to negotiate
| lease for oil and gas purposes, upon
which wells had been drilled and
which were producing a small amount
This lease was owned by the Springer
Oil and Gas Company, and which Cla-
tor claimed then belonged TO him.
Clator alleged, as an inducement to
the said North Penn Company, to
make the purchase, that he was re-
ceiving $50 per month for gas pro-
duced On the said lease, and that there
was upon the lease all material which
would be necessary for drilling three
wells on the Rogerson lease, and that
there was on the Springer lease a
valuable producing we'll By these
representations Clator induced certain
Directors of the North Penn Company
to agree to the purchase Of the prop
erty from said Gator, for $4,000, for
which the Company note at one year
was to be given. The assignee further
shows that by the bylaws of the
Company il was provided that regular
meetings Of the Board of Directors
should be held on the first Monday Of
each month, and that special meetings
might be called by the Secretary at
the request of three Directors, or by
the President upon his own motion,
and that no officer should execute any
note or promise TO pay money unless
authorized by the Board of Directors;
that no note should be given unless or
dered by five members of the Board of
Directors. The purchase of said prop
erty and the making of the note were
never authorized at any regular meet
ing Of the Board, nor at any special
meeting. ii is true that a pretended
special meeting Of the Board was had,
at which five members were present,
but no proper notice of the meeting
was ever given, and some members Of
tile Board had no notice whatever of
the meeting. Clator then attempted to
make good his attempt to sell the
property to the Company, BY procur-
ing from the Board at the next meet
ing thereafter resolution ratifying
what had been thus illegally at
tempted; but, at the next meeting,
there were but five members present,
SO that the action then had, which Cla-
tor contends, ratified the action of the
former illegal meeting, was without
force or effect, because Clator could
not lawfully take part in the transac-
ton and without him the requisite
number Of five members did not join
in such pretended ratification The
assignee AYERS that Clator did not even
own the said property at the time he
undertook to sell it, that II vas not in
receipt Of $50 per month for the sale
OF gas. and the owner Of the property
received not more than $50 per month
from that source; that Their We're no
valuable producing oil wells on the
property and that after the time Of
the pretended sale thereof TO the North
Penn Oil Company not barrel OF oil