The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1903-10-23
'BRICE AS A DEFENDANT
Stockholders Of Petroleum Oil Com
pany Start an Action.
Fraud Is Alleged BY Compliments. =
Sensational Charges Made.
From Wednesdays Daily.

From Wednesdays Daily.
Allegations of gigantic fraud are made
in complaint filed yesterday in the Hen
nepin county district court. c. W. Lit
tie and other stockholders have brought
suit against the Star Petroleum company
of Texas and it's officers and directors
for damages aggregating several mil
lion dollars. They also ask that receiv-
er be appointed, says The Minneapolis
Journal.
The plaintiffs, represented in the pres
ent action by George D. Emery of Min
neapolis, are G. w. Little, Leo M. Crafts,
w. j. johnson, L. P. Peterson and Al
bert M. Eddy. They are all stockhold-
ers of the Star company and bring action
in their own behalf and for the benefit of
,all stockholders similarity situated
As defendants the complaint names
w. E. Brice, William Ely Bramhall, W.
1. McAllister, S. B. Foot, II. F. Pierce,
w. S. Davidson, David Secor, c. H. Nc
Nider, Fred W. Browne, G. A. Richards,
the Star Petroleum company and F. R.
Warner.
1t is alleged by the plaintiffs that,
headed by w. E Brice, the defendants
formulated scheme to defraud the pub
lie. The scheme as carried out consisted
of organizing ten separate oil companies
in the following cities: Omaha, Council
Bluffs, Mason City, Belle PLANE, Des
Moines, in Iowa; Winnebago City, ST..
Paul, Minneapolis, Duluth, Mankato and
Albert Lea, in Minnesota; Chicago, and
Cincinnati.
These companies sold stock as fast
as possible and only as much of the pro-
ceeds was required to float the compan-
les, the remainder going into the Golfers
of the promoters, who formed the Star
Petroleum company. This was finally
made to include all the ten separate cor
porations. By the vote of selected and
fixed directors the assets of the ten
companies were transferred to the Star
company, and the stockholders were fore
ed to take Star company stock in return
for what they held.
Once under one management, of
which w. E. Brice was the head, it is
alleged that packed" board of di-
rectors operated the affairs of the con-
Germ for their own ACKNOWLEDGEMENT.
Finally last September meeting of
the directors was called, irregularly so
it is alleged, and it was voted to sell the
100000 plant at Beaumont, Texas, for
$780,, 800 1t is claimed that the direct
ors received large personal compensation
for the sale, besides having previously
sold out their own stock at large
profits.
Upon these premises the plaintiffs ask:
First, an order of the court compelling
the defendants to account for their of
fetal conduct in the management and dis
position of all funds committed to their
charges; second, that the court compel de-
PENDANTS to pay to said company all
sums of money and the value of all prop
erty which they have acquired to them
selves, have transferred to others, or
have lost or wasted by any violation
of their duties as officers; third that
the court compel defendants to account
for all money and property, acquired to
themselves in the management of the
Icompany's business and in addition
thereto that the plaintiffs may have
judgment against, defendants for ST.
100000.
They also ask that a receiver be ap-
pointed and that the defendants be re-
strained from disposing of the property
and money now in their hands and from
removing the books and records of said
company from this state.
A meeting of the directors of the Star
Petroleum company has been called for
Saturday at Beaumont, Texas, but A. E
Clark, who is one of the directors, will
mot be able to attend. Mr.. Clark knew
that the suit was to be started, for il
is an outcome of the meeting held in
Minneapolis couple of weeks ago.