Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1898-04-07
ANSWERS FILED
% the bill in the North Penn Oil
Company Suit,
brought by Assignee S. g. Smith.
7ohn e. Clator, Harry L. Nc
Kown. w, H. Halter and Others
Deuv the Allegations Made-An
Ontline of the Case for Defense.

THE answers of John Z. Clator, H.
ucI[own. ". H. Halter, Dennis Will
,;ams and Geo. II. Jones to the bill of
oon,DIaint filed by S. G. Smith, as
.;snee of the North Penn Oil Co., were
6Isd at the office Of the Circuit Clerk,
Yesterday. The principal answer is by
H. C}ator, who says the bill is in
efficient in law, and reserving 10 him.
s4f ali right OF exception to the bill
r,or its manifold errors and INSULT
oiancies" answers that: BY deed dated
Isnfarv i, 1895. George S. Griffith and
Iefondant. Geo. II. Jones, decided to
tta Company oil leases aggregating 439
arres which was agreed to by the
Board, the business being conducted by
( G Smith. as attorney for ;he Com
nsny. All respondent or the Working
committee had to do with the transact
.iou was an examination and recon-
,nandation Of the Board. By the terms
nj the assignment OF leases one-six-
,eerth Of the oil was to be run 10 the
credit of George S. Griffith. George II.
tones aud c. II. Lewis, and Williams
man no luiEIfrI, etS 10 diiESttt III tilC
I'm On the 18th of January, 1896, the
Company entered into an agreement
with defendant Dennis Williams, by
which it agreed to give him one-siX-
.eenth of the oil produced and all the
gas disposed of from leases ag
eregatiug 399 acres, being part of the
leases transferred by George S. Griffith
and George H. Jones. Respondent
saws that by securing the leases from
Griffith and Jones, the Company Sc
cured the William RogersOn 100 acre
tract and the George S. Griffith 50 acre
tract which were the only two tracts
OF any value secured by the Company,
and the only leases from which oil
was procured in paying quantities, and
by making the agreement OF January
1S 1896. the Company was relieved
from it's obligation to drill the three
wells provided for in the agreement OF
November IS, 1895, which would have
incurred an expense of from SIS, 600 TO
$40 900 on territory since proved to
have been unproductive, and which eX-
pense would have been a total loss to
The Company This agreement was
negotiated by the Working Committee,
composed of Clator, Halter and Nc
kown, but other members Of the Board
and stockholders took part, and were
wholly in the interests of the Com
pany. and everything done in connec-
ton Herewith was fully ratified and
confirmed by said Company, and re-
suited in great profit and benefit to
said Company, and all allegations OF
the bill to the contrary are not true.
Respondent further says that after
the transfer of the leases by Griffith
and Jones to the Company, and be-
fore they were proven of value, VIII
Hams at his own suggestion agreed to
assign to respondent, Halter and Nc
kown one-half of the one-siXteenth in
terest owned by him in said leases,
land some weeks later did transfer to
zach one-ninety-siXth' interest in the
product, and respondent has received
rs his interest about $3.50 but until
the time mentioned nothing had been
said or understood with reference to
giving part of the interest to
said Williams. and his doing so had
nothing whatever to do with the trans
ferring of the leases from Griffith and
Jones to the Company, and the allega-
lion in the bill is not true. The fact
that respondent. Halter and Mckown
owned an interest in the one-siXteenth
Df said Williams was known to the
Board Of Directors nett later than
February 10, 1897, as appears on the
minutes Of the meeting held on that
date and the allegation of the bill to
the contrary is not true
Respondent says at the time the
leases were procured from Griffith and
Jones he did not know Williams was
interested in the Woodruff lease of 48
acres; that after producing wells had
been brought in on the Rogerson and
Griffith leases Williams informed him
of his lease on the Woodruff tract; that
on June 8, '97, he purchased, at a sale
at Moundsville, the property Of the
Springer Oil and Gas Coo, and paid for
il; that later he sold said property SO
purchased to the North Penn Co., which
was ratified by the Directors, the
Company giving it's note for $1,000,
without interest, which note has not
been paid; that respondent holds an
other note of the Company for 1914. 03,
Tor services and money spent for the
company; that the necessary number
o. men only were employed, three Of
whom were relatives of the respond
ents, but two Of them stockholders,
and were competent men; that the al
legation of conspiracy and confederacy
70 defraud lis malicious and false and
Without the least foundation; that re-
spondent purchased supplies for the
company on his individual credit. and
gives details; that he was offered a
commission of three per cent on GER
TAN purchases but did not agree to
purchase from the Company making
lals offer and in fact did not so pur-
Cnase, but after the suit was filed he
h'ed as part of his bill Of offsets
cam for commission subsequently
NtlhdraWn; that respondent gave his
"HoIe Time, energy, skill and judg-
"'eAl 10 the interests of the Company.
Vt'eh working fifteen or eighteen
hours day for SO. used his own horse.
ana paid car fare and board. and gave
.ne use OF an office and telephone for
TWO years free of charge, and that he
meqUently paid out OF his own funds
[ne wages OF the bumpers and rentals
uue on leases, and also went on an
nlOemnity bond Of $50, 1000 for the Com
panv.
ne other answers are of like mature
:, 'orroborative, so far as they could
w ana all deny specifically and gen.
N'l1 tne allegation of the bill.
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