Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-11-24
State Fails to Sustain the Al
legations Which Were Made
Against s. A. Scott
INVESTMENTS IN OIL WELLS
Litigation Was an ou.ero~ Nth Of tho
Troubles Of tho Sac O and Gas
Company-Lsasss Lsps sd, Money
Invested Was Lost, and Criminal Ao-
ton Against Oil Expert sssun.


the oil promoter OF Indianapolis, Ind.
| who was under Indictment by the
grand Jury for obtaining money under
false pretense from Attorney M. W.
E'rick, w. u. Gray, Judge S M. Elwood
and Frank Walters, 81 farm er, was ae-
quilted by the jury on the first bal
lot, after one of the longest drawn
out and hardest fought ct,sss in this
history Of tho county.
In 1908 Indications Of oil were found
near Grant City. In, Sac comfy. by one
Mrs. Flora Atkins. OF Sac City. and In
- short time leases covering about
$500 acres OF land In that vicinity were
quietly secured. Judge Ilwood and
other capitalists of Sac City being in
formed that 1t was desired to form q
company for the purpose of uaklng
an Investigation and developing tbs
fields IL oil WAS found in paying guam
titles, Immediately organized what was
known as the Sac Oil and Gas Com
pany with MIR. Elwood as It's president
None Of the parties were familiar with
the oil business and were under the
necessity of securing the services OF q
practical oil man. They learned OF D.
A. Scott, OF indianapolis. who was rep
resented as being an oil expert, and
wired him to come q. once. Upon
his arrival In Sac City ne outlined a
plan for the development OF the lately
discovered fields which, he assured
them, were very promising. Stock IN
the new company was sole in Sac City
and Rockwell City, but II was agreed
by the stockholders that Instead OF US
/ ing the money In making ~ test well IN
| the Iowa fields, II should be USED IN
putting down a we'll in the producing
fields Of Indiana. This was done, but
unfortunately oil was not found, and as
the stockholders did not feel like put
ting up any moro money for the pur-
pose of continuing the investigation
In Iowa the company collapsed and is
now defunct.
| While the excitement was at high
water mark Judge Elwood and the
Rockwell City lawyers wanted to get
In on some OF the leases In Indiana
where there were producing wells.
Scott told them that he had bought a
block of leases covering 500 acres OF
| land right In the oil producing terri
| tory and that IL they wanted In he
would sell them half interest for ", :
500. The proposition vas accepted,
and Frick, Gray and Walt ,rs each took
a one-tenth interest, for which they
gave their checks, and Judge Elwood
took d one-fifth interes for $1,000,
| MT Nv Scott went
back to Indiana and In cue course OF
time prepared the leases In the name
Of the Rockwell OIL ComIa any and sent
to each of the investors {. lease of the
interest which they had acquired In
the property. Scott also agreed to put
down two wells on the lar d, which was
done as soon as practicable, but these.
too, did not prove to be "gushers," tho
oil was found. and 1t Is claimed in pay
] ing quantities. In order to equip the
wells for pumping and taking care OF
| the oil It became necessary to invest
more money. and this the investors re-
fused to do. Rentals on the property
became due, which they also refused
to pay, thus causing the leases to
lapse and consequently the money in
vested was lost. Scott was requested
to return to the investors the amount
of money they had paid him. and 1t
was demanded that 1t b. done within
specified time, intimatilg that unless
Scott complied trouble would surely
follow. He claimed the loss was not
due to any action of his therefore re-
fused to make good the loss.
When the grand Jury In this county
met at the September term OF court the
matter was brought to their attention,
and an indictment returned against Mr..
Scott. charging him with cheating and
defrauding and obtaining money from
M. w. F'rick, w. e. Gray, Frank Wal
ters and s. M. Elwood under false rep
reservations and preteises. A war
rant for his arrest was placed In the
hands of Sheriff Riseley. who went to
Indiana and brought him back, and as
he was unable to furnish the requisite
bond at that time, which was fixed al
| $4,000, by Judge McHenry, he was
placed in Jail, where he remained for
over two weeks. His attorney succeed
ed in getting the amount of the bond
reduced to $4,000, which was then put
up in cash and Scott was released from
! custody and went to his home in Indi-
( ana.
Two days before the time set for his
trial, Scott was back here with w. III
Eichorn. noted criminal lawyer Of
Button, Indiana.
The trial commenced week ago anG
| has been one of the hardest legal bat.
| ties ever fought In the county. Every
| inch of the ground from the very be-
| ginning has been holly contested, bu
| the strong defense put up by the de-
PENDANT was impregnafle. Public sen.
timent was strongly against Scott a
| the outset, but as the trial proceeded i
began to change in his favor. and b,
| the time the state had concluded its ev.
| idence it was foreEone conclusion
that the verdict of the jury must bt
| acquittal.
There was absolutely nothing in thf
evidence to sustain the allegations II
the indictment. There was nothing te
show that Scott had in any manner de-
ceiyed or defrauded tie plaintiffs, mol
was there any evidence to show tna
there was any intent to SO derraue
| them. 1t was shown that he had pro-
cured the leases on tie land that th'
leases had been deIive ed according tt
the agreement; that the wells nae
heen drilled. and thai. they produced
al II was shown thlt the investors
had a. representative on the grount
with Mr.. Scott nearly all the time ant
that they had knowledge OF what wa
being done, and that he loss to then
i MATT "a a