The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-10-20
OIL BUBBLE BURSTS ]
Stockholders Of Star Petroleum Com
pany, Ask Court for Appoint
ment of Receiver.
Encouragement and Fraud on the
Part Of .Company's Officers
Is Alleged.

Allegations of gigantic fraud are
made in a complaint filed to-day in
the Hennepin county district court.
G.. w. Little and other stockholders
have brought suit against the Star
Petroleum company of Texas and its
officers and directors for damages
aggregating several million dollars.
They also ask that a receiver be APP
pointed. = .sr -|r..
The plaintiffs, represented In the
present action by George D. Emery Of
Minneapolis, are C. w: Little, Leo M.
Crafts, w. J. Johnson, l.. P. Peterson
and Albert NJ. Eddy. They are all
bring action in their own behalf and
for the benefit of all stockholders sim
ilarly situated. g D. - III. "'.E .-
AS defendants the complaint names
w. E. Brice, William Ely Bramhall,
W. l.. McAllister, $. B. Foot, H. F.
Pierce, w. S. Davidson, David Secor,
G. HI McNider, Fred w. Browne, c..
A. Richards, the Star Petroleum com
pany and F. r. Warner.
1t is alleged by the plaintiffs that,
headed by w. E. Brice, the defendants
formulated a scheme to defraud the
public. The scheme as carried out
consisted of organizing ten separate
Omaha. Council Bluffs, Mason City,
Belle .Plaine, Des Moines, in Iowa;
Winnebago City, st. Paul, Minneapo-
lis, Duluth, Mankato and Albert Lea,
in Minnesota; Chicago, and Cincinnati.
These companies sold stock as fast
. as possible and only as much of Etae
proceeds was used as was required to
J, foatothe; companies the Remainder
4 going Unto the Golfers of1sti1e pro-
4 tmoters, who formed the Star Petro-
! leum company. This was finally made
! to include all the ten separate corpo-
rations. By the vote OF selected and
I "'hxed' directors the assets OF the
! ten companies were transferred to the
Star, company, and the stockholders
were: forced, to. take Star company
stock in return for what they held. .
Once under one management, o.
which w. E. Brice> was the head; it: il
alleged that packed" board of di
rectors operated the affairs Of the con
Germ for their own aggrandizement.
Finally last September q meeting OF
the directors was called, irregularly sc
it is alleged, and it was voted. to sci
; the 100000 plant at Beaumont. Texas
for $302,500. It is claimed that thu
! pensation for the sale, besides having
s previously sold out~their own stock a
/ large, profits, .:2..~.- ., ...-<. -
Upon. these, premises the plaintin
ask. First, an order of court compel
ing the defendants to- account for thei
OHlclal cOnduct IN the .managemen
! ana al disposition OF all funds co1nmitte'
; compel defendants to pay to said com
pany all sums. Of money and the valu
of all property which they have &C
}. quired to themselves, have transferre
! to others, or have lost or wasted b.
any violation Of their duties as. of
+ ficers; third, that !, the court, scompe
defendants to account for all none
and property, acquired to. themseive
in the management Of the company
J, business and in addition thereto tina
the plaintiffs may. have judgmen
against defepdants for 1900, oo0 49,. = =,
L They also ask that, a - receiver b
q; appointed and that the defendants b
! restrained from disposing of the. prop
erty and money now in their hand
} and, from removing the books an
) records Of said company from .thi