The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1898-03-10

for oil and gas purposes. upon which
wells had been dsllled and which we're
producing a small amount This lease
was owned by thc Springer OIL and Gas
Company, and which Clator claimed
then belonged TO him. clator alleged, us
an inducement to the said North Penn
company. TO make the purchase, that he
was receiving 500 per month for gas
produced on the said lease. and that
there was upon tho lease all material
which would be necessary for drilling
three wells on the Rogerson lease, and
that there was on the Springer lease q
valuable producing well, By these rep-
RESERVATIONS Clator induced certain d..
rectors OF the North Penn company 10
agree to the purchase OF the property
from said Clator, for $1,000. for which
the company's note al one year was TO
be given. The assignee further shows
that by the bylaws OF the company II
was provided that regular meetings OF
the board OF directors should be hold
on tho 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 hls
own motion. and that no officer should
execute any note or promise 70 pay
money unless authorized by the board
Of directors; that no note should be-
given unless ordered by five members
OF the board OF directors. The purchase
OF said property and the making OF the
note were never authorized at any
regular meeting of the board, nor at
any special meeting. 1t Is true that
pretended special meeting OF the board
was had, at which five members were
present, but no proper notice OF tho
meeting was ever given. and some mem
bers OF the board had no notice what
ever OF the meeting. Clator then at
tempted TO make good his attempt to
sell the property to the company, By
procuring from the board at the next
meeting thereafter resolution ratlfy-
Ing what had been thus Illegally att
tempted. but, at the next meeting, there
were but five members present, SO that
the action then had, which Clator con-
tends ratified the action OF the former
illegal meeting. was without force or
effect. because Clator could not law
fully take part In the transaction, and
without him the requisite number OF
five members did not Join in such pre-
tended ratification The assignee AYERS
that Clator did not even own the said
property at the time he undertook to
sell it,that he was not In receiptot $50 per
month from the sale OF gas, and the
owner OF the property received not
more than $50 per month from that
source; that there were no valuable
producing oil wells on the property, and
that after the time OF the pretended
sale thereof to the North Penn Oil Com
pany, not a barrel Of oil was received
from the property.
1t Is further alleged that Clator OBJ
tanned from the president and secre-
tary note dated some time In June,
1897. for $1,000, payable one year after
date. which Is now held by Clator as
he has stated to the assignee, and Is
asserted by him as a liability OF the
said company, and entitled to share
in the distribution OF the proceeds OF
the company's property, 10 DE made by
the assignee.
The assignee AYERS that IL Clator ov-
er purchased the property. he did so
with the intention and purpose OF turn
ing 1t over 10 the North Penn company,
of which he was then director and a
salaried officer; that, In accounting for
the property to the person who convey
ed 1t to him, Clator paid or contracted
to pay only $500. so IL the notes were
valid and binding upon said company,
Clator would be bound in equity to ac-
count to the assignee for the sum OF
$500 the amount of the profit he thus In
equitably and fraudulently attempted
to make at the expense OF the company
whose trustee he then was.
Clator asserts that he is further en-
titled In the distribution OF the COM
pany's property BIZ reason OF note
purporting to be made by the company
for 1886 So. 1t is alleged by the asslg-
nee that the consideration pretended
was on account of services by Clator to
the company between May and No.
vember 20, 1887. The assignee alleged
that the services were foc but few
days during that period. largely unnec-
essarT, and wholly unauthorized so
that the note. Is wholly without consid-
Grafton, and nothing Is due to said
Clator. II IS alleged that Clator, Halter
and McKown employed larger num-
Der OF bumpers than was necessary,two
being sufficient, but as matter of fact
they employed -four, persons. who were
their relatives. who were paid at leas.
80 1-3 per cent more than would have
procured the services of able persons.
This continued from March. 1896, until
December. 1897, and occasioncd a loss
10 the company of at least $1,000, which
sum Halter, Clator and McKown are In
equity bound to account for
All the actinss and doings aforesaid
OF Clator, Halter and McKown as alleg-
ed by. the assignee, were done through
and In pursuance OF a confederation.
combination and conspiracy OF the said
Clator, Haller and McKown. to lnjure
and defraud the companv:"
The share of the production OF oil,
which has fraudulently gone TO Clator,
Halter and Mckown, was run into the
pipe lines OF the Eureka Pipe Line
Company, and was for the most part,
sold and turned into money. An exdct
account of the oil so run can only be
shown by the said Pipe Line Company.
The assignee alleges that there Is now
In the line OF the company some oil 10
the credit OF Clator. Halter and Nc
kown. which oil, as well as any which
may thereafter come into the lines on
account of the share of the said parties,
Is in equity the property OF the as
signec.
The assignee prays that the North
Penn OIL and Gas Company, John e.
Clator. W. II. Halter, Fl. L. McKowu.
George II. Jones, Dennis Williams and
the Eureka Pipe Line Company may be
made parties defendant hereto and an
swer according to law: that the said
Clator, Halter and McKown may. each
answer and show the amounts receiv-
ed by or credited to them by reason of
the matters set forth here; that an ac-
count may be taken OF the amounts so
recelved,as well as OF the other amounts