The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1898-03-10
.TH.EN0!RTH Penn.
OH and Gas Company Litigation
l,as Taken u Is
RATHER
SENSATIONAL TURN.
rNTHE CIRCUIT COURT. sER1ous
ALLEGATIONS MADE, AGAINST
MEssRs. HALLER, aIcKowN
AND cLAToR, THE WORKING
y COMMITTEE. WHICH OPERATED
lsTXTENsIvELY IN THE MAR.
sHALL COUNTY OIL FIELD.

COMMITTEE. WHICH OPERATED
EXTENSIVELY IN THE MAR
sHALL COUNTY OIL FIELD.
The troubles OF tho North cPnn oil
q Gas Company, with which the public
is not thoroughly familiar, bu, OF which
an tnkling has been had recently, have
assumed a new phase, Assignee s.. G..
Smith having yesterday filed a declara-
tion In which serious charges are made
In detail against Alcssrs John Z. Cla.or,
Wv. II. Halter and II. L. McKown. who
composed the working committee having
in charge the ,company's operations in
the Rogerson field. Marshall county,
about nine miles south OF Wheeling.
Fraudulent transactions by the three
1 mentioned are alleged. The bill recites
I substantially as follows:
The bill recites that on the 10th day
OF January, 1898, the company assigned
to s, G.. Smith, and that when the COM
I. pany was organized In 1896 n working
committee OF the board OF directors was
4 appointed to conduct the business OF
the company. the committee being COM
4 posed OF Messrs. John L. Clator. W. II.
n Halter and H. L. McKown. Proceed
ing, the bill states that in turning the
affairs OF the company over to the
working committee. the company. relied
q upon the committee to exercise It's best
judgment for the advantage OF the COM
! pany in any contract 1t might make,
but as the assignee Is informed, the
committee proceeded to contract with
one Williams and one Jones, upon terms
which were made for the Individual
Z benefit OF the members of the commits
Z tee, and to the loss and disadvantage
4 of the. company. and for the purpose OF
defrauding the company out OF large
sums OF money to which II was enti-
4 tied. The fact that such an arrange
ment had been made was unknown to
\ the company until shortly before the as
ssignment was made The terms of the
agreement between Jones and Williams.
{ on the one part, and Clator, Halter and
i Mckown. on the other part, nre alleged
to be as follows: Gator, Halter and Nc
kowr We're to receive from Williams
and out OF his one-sixteenth OF any
IS production upon the territory covered
y by said leases, one-han OF the amount
so belonging to said Williams. or one.
thirty-seconG part OF said production;
and they were also to receive like
share, that is TO say, one-half OF the
interest held by the said Dennis Will
! iams, in the Woodruff lease, but the as
: signee Is not informed what share of.
Z the production upon that lease was to
belong to Williams. but believes Il to
have been one-sixteenth. The five
( leases were transferred TO the company
Z in pursuance of the arrangement thus
made in fraud Of Its rights by the said
Clator, Halter and McKown. and. as re-
y CURED by the terms Of the transfer, the
\ company proceeded to develop the ter
ritory. or part of it. OF the five leases
the company, insJune. 1896, surrendered
= the RIGGS lease, never having drilled
we'll upon It: surrendered the Samuel
!, Grow lease Of 1870 acres to the lessor on
the lst Of January. 1898. after having.
at the instance Of Clator, paid three
j quarterly rentals agSregating $3.50, af-
( ter! II had been shown as a matter OF,
fact that that tract was worthless for
-Soil purposes, and in October. 1896, the
J company sold the Griffith lease. The
: company never drilled any wells on the
Z William Crow lease but retained 1t and
the Rogerson lease up to the time OF
the assignment.
The company drilled in all ten wells
4 on the five leases, eight of these wells
being upon the William Rogerson 100
4 acre tract and two on the George S.
y Griffith lease. The wells drilled upon
{ the Griffith lease turned out to be val
4 uable, and In October. 1896, were sold
1 by; the company for sum between Sl6-
5 600 and $1,000. OF the eight wells drill
Z ed on the Rogerson lease, one was dry.
one was a gas we'll, and the other six
G were producing wells. Some producing
z wells We're also drilled on the Woodruff
lease, and since the sale of the Griffith
z lease by the company a number Of wells
producing and valuable were drilled.
81 The assignee AYERS, upon informa-
t!on and belief, that OF all the produc-
3 ton on the Rogerson leases, the Griffith
lease, and the Woodruff lease, the said
Clator, Halter and McKown have re-
S ceived that share and amount which
was contemplated and provided for In
their agreement with Williams. that is
to say. orc-thlrty-second part. The
amounts so received by Clator, Halter
and :SicKowH the assignee Is unable to
state accurately. He has been inform
ed and believes. that out OF the first six
: months production upon the Rogerson
Z and Griffith leases they received a sum
OF about $685. They received other
large amounts as their share OF the
production from the Rogerson, Wood
ruff and Griffith leases. and the as
signee further AYERS that they are still
i receiving large sums as their share OF
Z the production from the Woodruff and
3 Griffith leases, OF which neither the
company nor assignee now has any
y control. The assignee believes that the
< amount received by the said Clator,
s Halter and McKown exceeds 5000. In
i trust for the said company, and in
equity they should be compelled to ac-
Z count. for and pay the same to the as
4, signee as the equitable owner thereof.
While the operations OF the company
! were under the control of C!ator. Hal
Z Ter and McKown, 1t was their duty TO
9 purchase such supplies rs were rea-
q sonably needed for the operations OF the
company. at the best price for which
they. could be- obtained The assignee
AYERS that the purchase OF the supplies
was left to McKown. and he purchased
\ supplies to the amount Of about 81, 800.
5aInatpal of DiIrctasinp- nj tho lIouau,