The herald., 1898-11-06
OIL PARTNERS AT Law
SUIT AND COUNTER SUIT ON THE
DARCY CONTRACT
ACCOUNTING WANTED BY ALL
Chadwick and His Associates Want a
Receiver Appointed and an In
junction to Issue

p. M. Darcy and Maria Darcy, his wife,
to whose experience in the oil business rel
erence was lately made in these columns,
yesterday commenced an action against II.
l.. Chadwick, John W. Brunton, James L.
Brunton and Edwin X. Wood, for the pur-
pose of annulling a contract for the develop
ment of oil producing territory in this city.
The agreement was entered into on May
%, 1897, with Chadwick and the Brunton
brothers, who admitted Wood to an inter
est therein on or about Oct. ], 1897. The
plaintiffs in this action allege that the land
and premises at the date of the agreement
were worth $4,000, and that the use of the
same was to be allowed as a part of the
consideration from plaintiffs for the purpose
of sinking wells and producing oil so long
as it might be done in paying quantities.
The contract provided for the drilling of
three wells by defendants in consideration
| of admission to the premises under the terms
OF agreement and on payment OF $40O by
plaintiffs, who were to become entitled to
half interest in the wells so soon as defend
| ants had been reimbursed for their ex
penditure and services in drilling the three
wells, such sum not to exceed $4,000, and
were TO be repaid the $400 advanced by them,
| such reimbursements to be made from the
net receipts of the three wells.
Plaintiffs were to have the sole manage
ment and control of the operation of the
wells drilled and to perform specific duties
under the provisions of the contract. These
duties, they allege, they have performed.
1t is alleged, however, that defendants on
or about Oct 2lst notified persons indebted
to the parties to The suit not to pay over
moneys to plaintiffs on account of the pur
chase of oil or have. any business dealings
with them, all of which is alleged to have
been contrary to the provisions of the con-
tract, which was thereby rendered null and
void.
1t is shown that certain work has been
done under the terms of the contract, six
wells in all having been sunk, and that there
is an Indebtedness now on the property of
S6lS375, composed in part of an item of
S3265.5O claimed by defendants for labor.
Plaintiffs allege that defendants are not en-
titled to any part of its claim therefor. 1t is
further shown that there is in storage with
the trustees of the Oil Producers exchange
427359 barrels of oil produced by the wells
in controversy, 1000 barrels of which have
been pledged by plaintiffs and defendants
to the First National bank of this city to
secure a loan of $1,000, 273.59 barrels remain
ing unpledged. In addition, there is said
to be in storage in the tanks of the parties
to the action 140 barrels more of oil, max
ing altogether 449359 barrels, against which
there is only the lien of $l600
Judgment is asked for the annullment of
the agreement, for an accounting, for the
sale OF the assets or division, if for the best
interest OF Jne partleS concerned, and Tor
further relief
A counter suit was also instituted yester-
day by the defendants against the plaintiffs
IN the action above referred to. They allege
that Darcy on Jan. lst last assumed the
management to the entire exclusion of them
selves or Mrs. Darcy, and has enjoined
them from consulting with her concerning
the administration of affairs of mutual con
| Germ land they allege violation of the specific
terms of the agreement by Darcy and wife.
who, they say, failed to advance the $4O0
provided for the partial expense Of drilling
the first three wells, never having advanced
more than $lS7.95 in pursuance of that agree
ment.
1t is alleged that the Darcys have failed
to make a monthly accounting of their
acts as managers of the property, as agreed,
denying access at any time to the books of
account, and paying only $l37l10 of the
S54Sl.S4, which was the cost of the three
wells drilled afterwards, and for which the
Darcys were bound to pay one-half Out of
the net earnings of the wells $4062.02 was
paid on such account.
Complaint is also made that Darcy has
converted to his own use $75 per month as
salary, contrary to agreement, and for the
month of October SIS as salary for his wife
for her personal services in connection with
the transaction of partnership business. Va
rous sums alleged to have been withdrawn
their own use by Darcy and wife are alleged
to have been taken without authority, and
there is claimed to be balance of $2949 40
due and unpaid to Chadwick and his fellow
plaintiffs.
The resources of the copartnership are al
legged in this counter complaint to be S247
cash on hand, solvent credits due the firm
| amounting to about $1,000, together with
pumping plant worth about $500, and six
oil wells, which have cost about $lO,669 and
are now worth about $6500. The indebted
ness of the firm to outside parties is alleged
to be only $626.92
Reference is also made to the institution
of foreclosure proceedings by Alice b. Cohn,
commenced Oct. Goth, and affecting the same
property, it being sought thereby to fore
close two mortgages given by Darcy and
wife to secure the payment of $l373 and
$500 respectively, and they allege that the
Darcys have taken no measures to protect
the assets and resources of the copartner
ship thus brought in jeopardy, wherefore
they ask that receiver be appointed to take
charge of the property and arrange for the
satisfaction of the mortgage Indebtedness;
that an accounting be had under the direc
ton of the court, and that the Darcys be en-
joined from interfering in any manner with
partnership effects pending the ultimate