The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-05-28
". S. LOGAES ESTATE SUED.
CHARGED THAI HE JUGGLED
SAN LUIS COPPER STOCK.

gohn j.. Gibbons Wants Accounting From
inc Executor and Seeks 70 Recover
RXOS, 900 for the Company Which,
He Says, Logan Got by Unfair Means.
The estate OF Walter 8. Logan, the lawyer
who died in July. 1905. Ia a defendant In an
action brought in the Supreme Court by
John j. Gibbons, who constitutes the firm
of Coilamore. Gilman d Co.. OF 2S4 Fifth
avenue, and who is acting as director Of
the San Luis Mining Company. a copper
concern at Durango. Mexico. The suit Is
TO secure an accounting OF the manage
ment OF the company's funds and property
by Walter s.. Logan, its promoter. and by
Miss Myra B. Martin. the secretary or treas
urer OF the company. and also Mr., Logan's
private secretary. and to recover for the
company S505, 900 from tho estate which 1t Is
alleeed was diverted from the company
and applied to Mr.. Logan's own personal
use. fAf'
HOLSTER Logan, the son. as executor
Of the estate, and Miss Martins as the eIecu-
trir. are defendants. both individually
and in their official capacity. together with
FIVE others. including State Senator George
B. Agnew. Injunctions are asked for
to restrain them from disposing Of stock
they may hold. The appointment OF a
receiver for the company while the case is
pending is also asked.
Mr.. Gibbons declares in the complaint
that Logan organized the San Luis Com
pany, with a capital stock Of 81. ZOO, 900. In
the early part of 1901. became the first
president and caused himself to be ap-
pointed its counsel. Subsequently the
stock was increased to 5000, 900, the oom-
plant continues, and upward OF one million
and a quarter dollars was realized by public
sale from 300 stockholders by means of adj
vertlsements. printed matter and brokers.
Logan, having assumed financial control
and from the first issue OF
stock until July, 1906, II is alleged. appro-
priated 10 per cent. OF this amount, or Sl25.-
oOQi for his own use, without authorization
from the directors or stockholders. The
money, 1t is said, was placed in his own
personal bank recount.
The price of the stock. through wide adj
ve~rtisement, rose above the par value. $40.
10 as high as $50. The complaint states
that Logan sold his own personal stock to
the applicants. who offered these high
prices, although there was company STOCK
FOR sale. and kept the proceeds. Logan,
also, 1t is declared. acting as president.
sold himself stock from the company at
prices greatly below the market value,
some at half the value. then sold the
stock at the regular market price. realizing
in all $500. 900.
II Is further declared that $50 900 was
made by Logan as an officer OF the COM
pany by purchasing mining properties
and then reselIing to the company at an
advanced price, and that $50 900 was made
by Logan's charging interest on alleged
loans made by him and refusing interest
on money received by him. Other large
sums are alleged to have been diverted
by Logan. Miss Martin, 1t is charged,
acted as confederate Of Logan In the alleged
mounts Of stock at prices greatly below
the market value and thus obtained con-
troll of the company.
Senator Agnew's connection with the
case, according to the complaint is that
he loaned $3.50, 900 to Miss Martin through
Major Britton Davis, q former army OFFICER
and now president of the company. He
received a large part of the stock OF the
company formerly held by Logan and then
divided among his legatees as collateral,
and he and Davis also received is 900 shares
as bonus for the loan. As Davis. knew
that all this stock was subject to the lien
Of the company, because OF Logan,s opera
tions In obtaining It., IL is alleged, before
the Senator made the loan, injunctions
are asked for against Davis and the Sena-
tor to restrain them from disposing OF the
stock.
Mr.. Gibbons charges thatrthese matters
were brought TO the knowledge OF the
directors by the report of an expert ao-
countant upon the treasurer's books at a
meeting in February, 1907, and the board
refused to take action against Logan'e
estate. Gibbons is a recent president and
has about $50, 900 invested. William b.
Raymond Of Watson a Raymond, counsel
for Mr.. Gibbons, said yesterday that the
company's stock was good, but that the
company needed the matter cleared up.
Miss Martin, at her Office, 81 William
street, would not discuss the case until
she could prepare a complete statement
covering all. Supreme Court Justice Yer
has issued an order upon Miss Martin to
appear for exa minatiOm.