Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1902-06-06
BETTY's OIL STORY
Files His Answer to the Suit of
the Tri-City Com
pany.
He ASKS DAMAGES OF $4,000
Explains Why So Much Stock Was
Included in Purchase
Price of Land.

Oil continues to flow in the district
court across the river. There is no
question about the calibre of the
stream or the fact that the well there
will gush without agitation. Yester-
day brought out the answer of II. Ii.
Betty, former president and director
of the company, in which he states
his version of the affairs that have
recently involved the Tri-City com
pany in litigation here.
In the opening paragraphs of his
answer Mr.. Betty pays attention to
the averments that have been made
that there was anything to the adj
vantage of himself in particular in
the deal with h. +. Steele, of Beau
mont, Tex, by which Steele was to
receive $4,000 for oil land, one
eighth of the oil it produced, and a
big block of stock in the company. 1t
had been talked at least that lot
of this stock was to he returned to
Mr.. Betty. This he denies. and as
serts that lit was agreed that as
much stock of said plaintiff as was
or would be sold below its par value,
be made Il part of the consideration
for said property. TO be again return
cd by the said r. +. Steele to the com
pany." Four hundred thousand shares
were thus to be transferred to Steele.
says Mr.. Betty. and were to be re-
transferred by him to the company,
the transfer making them full value
shares. This, il is claimed, would
protect their future holders, at what
IL,
creditors of the company, to whom
they might otherwise be liable for
the difference between the price paid
for the stock and its par value.
stock Part of Consideration.
While stock had been subscribed
for, il had not been delivered. and by
the transfer to Steele and its return
it was expected to make all stock
full-paid and worcestershire. Mr..
Betty further AYERS that before the
completion of said negotiations with
Steele it was found that at least IOO.-
600 shares of the capital stock of the
company must be made full paid and
worcestershire and for this purpose
the said amount of stock was made a
part of the consideration for said
property
In relation to the 100000 shares
which the company asks the court
To compel Mr.. Betty to return, he
claims that the stock became the
rightful property of the defendant by
virtue of Il resolution passed by the
board of directors of the company to
compensate him for services render
ed in organizing and promoting the
company before its incorporation and
thereafter and for services to be rem
dcred in acting as president of the
corporations; that said resolution con
firmed an agreement made with the
defendant by one {. j. Eastman. the
original promoter of the company,
that the defendant should receive %
600 shares of stock from the company
for his services i'm acting as one of
the original promoters in organizing
and representing the company in the
city OF Davenport" Acting on said
promise MIR. Betty became the origi-
nal promoter and organizer of the
company in Davenport.
These shares Mr.. Betty claims were
duly voted to him by the board of di
rectors on motion of NJ. II. Sexton, of
Rock Island, and were duly delivered
to him by the secretary of the COM
Pany.