Los Angeles herald., 1907-12-28
CHARGE OIL
DIRECTORS !
WITH FRAUD
ANAL LCAMATED NAMED AMONG
DEFENDANTS
RETURN OF $425,s54 IN ALL Is
DEMANDED
Sale OF Salt Lake OIL Stock at Belo"
Real Value Was Urged by
Officers Is Accu-
satlon

Fourteen suits asking judgments in an
aggregate amount of $425,354 were filed
In the superior court yesterday against
]. E. Bamberger, John d. Wood. simon
Bamberger, Walter C. Price, Frederick
Phillips. j. A. Chanslor, w. s. Porter
and the Amalgamated Oil company.
The names of the plaintiffs and the
respectiye amounts they demand are as
follows:
Alfred Curtin Hirsh, $4,000; NJ. Blumen-
thai. S39. 900; S. M. Becker, $12,142; Joseph
r. IJllman, S130,000; Isaac Ryder, S2l,6l;
10. Manuel Bach, $6500; Morris b. Mayer
$6500 A. j. Levy, $4,000; Alexander Hy-
man, $21,671; A. N. Stein, $65,OOO; Charles
A. Stix, $520O; Myer Shane, $21,61l; Samuei
l.. Elias, $4,000, and Albert Heideipacn'
S13,O00
The complaint alleges that the defen-
dants were the directors of the Anal
gamated Oil company during the first
year of it's existence, which ended Oc-
tober. 1905. Prior to the formation OF the
Amalgamated company, the plaintins
claim, they held various amounts OF the
stock of the Salt Lake Oil company,
which they were later induced 10 sell
through what they allege to have peen
fraudulent representations as to ten value
of their holdings.
On October 25 1904 the plaintiffs say q
letter was sent to each of them signed
by j. d. Wood as president of the SAT-
Lake Oil company, in which it was stated
that because of the difficulty In financing
the company and avoiding assessments,
the depressed condition of the oil market
and the strenuous competition pending,
ALI of which threatened to leave values
uncertain for an indefinite period. the
principal owners of the cauital stock had
accepted an offer of 81 share Inc
writer's according to the complaint, de-
clared this was the best value that could
be created for the stock at that time,
and notice was, given the stockholders
that the opportunity to dispose of their
stock would remain open until December
of that year.
Report Inclosed
Accompanying the letter was a report
said to have been made by the manager
of the company which showed that
twenty wells had been completed, all or
which were producers, with the excep-
tion 'cf two, and four others were being
dug. The report contained statement
of the financial condition of the company
which showed an excess of liabilities OF
SiS,957. Predictions of lower prices were
made, and 1t was stated that 1t would
be impossible to secure any OF the pusl-
ness of the large transportation COM
business was given to competitors even
when the bids of the Salt Lake company
were lowest.
The plaintiffs say the letter and report
were sent out for the purpose of mis-
leading and deceiving them and with the
intention on the part of the defendants
fraudulently to induce them to dispose
of their stock at less than its real value.
A part of the scaeme, they say, was the
formation OF the Amalgamated OIL COM
pany, and they declare the directors of
the Salt Lake company are found to Lave
been in charge of the latter company.
They believe the directors paid for the
stock themselves and transferred 1t 70 the
Amalgamated company, formed, they say,
for that purpose.
A suggestion was made, the fourteen
men say, some months ago that every
thing was not as it should be, and since
that time they have been carrying on
an investigation, which leads them to
believe that the stock was worth at the
time they sold it SIS or more per share.
and they now seek to recover the diff
ference in the value of the stock.