The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-08-18
Serious Charges Made Against Charles
L. COrkran by BENJAMIN W..
Cross, of Cincinnati.
MANOR LUMBER COMPANY
ALLEGED TO HAVE BEEN FORMED
FOR FRAUDULENT PURPOSES.
Receiver Appointed for the Concern
by Maryland COurt-Nego-
tiatIe Paper .Kited."

BALTIMORE, Md. Aug. 1.-THE details
| of an alleged attempt TO swindle banks on
| a large scale by means of fraudulent cor
porations and fictitious notes is told in a
| petition fled to-day in the Circuit Court
| at Towson for a receiver for the Manor
Lumber Company, of that town. The
amount involved, according TO the petition,
is over 81, ,000,0C and ii is asserted that the
scheme has been at least partially success
| full.
Benjamin w. Cross, of Cincinnati, is the
plaintiff and. according to the story told
by him, he was induced to accept certifi-
Gates of stock in the Manor Company by
Charles E. Corkran, originator and pro-
moter of the scheme, which stock he sub
sequently transferred back TO Corkran.
Cross has learned since, he says. that the
company was not Incorporated for the pur-
pose OF doing a legitimate business, but
formed by Mr.. Corkran a part of a
scheme for alleged swindling, covering ter
ritory from Boston on the North to Chi
cago on the West and Nashville on the
South.
Mr.. Corkran being already interested In
some legitimate companies, notably the
Chequassett Lumber Company, with
branches in New York, Boston, Pittsburg.
Norfolk and Chicago; the American Bird
wood Company of Cincinnati, with branches
throughout the East and West. and the
Chesapeake Lumber Company, of Balti-
more. wished. 1t Is alleged. TO increase the
credit of these companies with the banks
of the country for the purpose OF "kiting'
negotiable paper through them. He organ
lied from eighteen 10 twenty-one smaller
companies, it is alleged. ostensibly engaged
in the lumber business, from which he
would on demand receive from $1,000 to
5000 in negotiable paper. payable to the
order of any of the parent companies need
ing it,. This paper was discounted in enor-
nous quantities. the bill alleges. at various
banks in the country. they being led to be-
lieve that each note represented a bona
tde sale OF lumber.
Among the twenty-one smaller companies
so organized are the Manor, Parkton and
Suburban Lumber companies. OF Baltimore
county: Pocahontas Company, of Norfolk
Sylvania Company. of Philadelphia. and
Muskoka Company, of North Tonawanda,
y. Y. The bill further alleges that in or
der 10 better carry out his scheme, he
kept his connection with these companies a
secret and led banks TO believe that all
were Independent companies In pursuance
of the scheme. the bill says, MIR. Corkran
had been discouting among the banks of
this country worthless paper aggregating
at least 81 100000. including $1,000 OF the
Manor Company.
Within the past week the alleged scheme
of Mr. Corkran has been discovered il is
said I'm the bill. bv the banks of the coun-
try and they have refused TO discount any
further paper. Consequently. the notes
which the banks now hold. IL is stated in
the bill. have gone TO protest. The concern
- hopelessly insolvent. IL is alleged ana
with no money i'm the bank with which to
pay the bills.
Judge Burke appointed Osborne L. Yellott
OF Towson. receiver for the Manor Com
pany. and II is said that petition for a re-
ceiNer Tor the Parkton Company will be
Fled on Monday next.