Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-22

1904. unlawfully combined. conspired.
confederated and agreed by means of
| false pretenses and by other false and
subtle ways to obtain for themselves
| from William T. Redman 5000 and from
Clarence D. Nourse $500. and from
divers other persons.to the grand jury I'M
known $4,000. with intent to cheat and
defraud such persons
The indictments were hurriedly prepared
at the United States attorneys office to-
day In order that the grand jurys report
| might be filed today. since the statute of
limitations would begin 70 run tomorrow
the offenses having been committed Octo-
Der %. 1904.
A meeting of the board Of directors of
the Capuzaya Mining Company was sched-
uled for O'Clock this afternoon. anG
United States Attorney Baker said benc..
warrants would be served on the two de-
PENDANTS there. They will probably ar
range bail for their release.
Bill for Dissolution.
The bill for the dissolution of the
corporation and the appointment Of the
receiver. filed In the name of the United
States of America, alleges that on the
fourth day of November. AID 1903. one
Edwin Clark. one Fred G. Norris and
one Arthur NJ Davis filed in the Office
of the recorder of deeds of the District
of Columbia a certain certificate pur
porting to be certificate of incorpora
ton of the Capuzaya Mining Company,
cate is hereto annexed, marked Exhibit
A. and made part hereof.
THAT from the said 4th day Of Novem
Der, 1903. until the present TIM. the salt
Clark. Norris and Davis. and their sue
cessors have claimed to be body corpo-
rate. under the title Of the Capuzaya MIN
ing Company fer the purpose named in
said certificate.
"And petition says that the said Ger
tificate was filed contrary to the laws OF
the District Of Columbia and is illegal,
because the same purports to give to the
said Incorporation the right to conduc,
more than one class of the business men,
toned in subchapter 4 of chapter 1S of
the code Of the District Of Columbia
among others. the business of mining,
quarrying. manufacturing and tra nsporta-
ton companies.
Upon Information and Belief
Petitioner is advised and believes, ant
upon Information and belief AYERS, that, al
the time Of fling Of said certificate, one
Eugene Davis. otherwise known as Alva
Eugene Davis. had a contract for tn.
purchase by him, for the sum of $50, OGO
Of certain mining properties which wer,
known as the San Vincente. Capuzaya
ard San =, B att properties: and wer,
near the city of Parral. in the state Of
Chihauhau. Mexico. and which were ond
are known as the Capuzaya group ana
that the CapuZaya Mining Company was
organized by the said Davis with the in
tention OF selling the said mining prop
critics to the said company at price
greatly in excess of that contracted to
be paid by the said Davis therefor. and
for the purpose OF enabling the said
Davis. by means Of divers deceitful and
dI1ln 70
tions. to sell the stock of the said
company to any one who might be
persuaded to buy the same.
~ nat in pursuance to the said intention
agreed to sell the said mining properties
to the said company. and the said COM
pany agreed to purchase the same for
SH.910 shares of the capital stock of the
said company. and the sum of $40. to
be paid in money in several inStallments
the sa d Davis agreeing to contribute to
the treasury Of the said company enough
of its capital stock to be sold by the said
company to pay the said sum of $4,000.
and to raise the necessary development
ties.
+:Contributed $4,000 Shares.
THAT thereafter the said Davis did con-
tribute to the treasury of the said COM
pany $1,000 shares of its capital stock, and
the same was offered for sale as treasury
stock through the said Davis. who had
been elected vice president of the said
company. and one Edward c. Bryan, who
had been chosen treasurer thereof
And petitioner Is informed and believes.
and therefore AYERS. that in the latter
part of the year 1904 the said DAYS and
Bryan, as such officers Of the said COM
pany. sod more than 5000 shares of its
capital stock to persons who purchased
the same in the belief that they were
buying treasury stock of the said COM
pany, said belief being based anon rep e.
sensations made by Davis and Bryan that
the same was treasury stock: that certifl-
Gates of stock were issued to such pur-
chasers. and were charged to tho stock
then in the treasury of the said company:
that thereafter the said certificates Of
stock transferred to such purchasers were
by the said Bryan. in his official capacity
charged to the stock of the said Davis
and the money received therefor was never
turned into the treasury Of the said COM
pany. or accounted for In any way
That the said stock was sold at prices
ranging from $3.50 to S per share bring
ing in over $4,000, which sum was con-
verted to their own use by the said Davis
and Bryan.
And petitioner is informed and believes,
and. therefore. AYERS that many other
peIoOhS bouSNt BUCK IEOIn the SAID DAVIS
and Bryan. as such vice president and
treasurer. respectively, In the belief, based
upon the fraudulent Misrepresentation
made to them by the said Davis and Bry-
an. that such stock was treasury stock Of
the said company. and that the money
derived therefrom was to be used for
the purposes Of the said company, when
in fact, the stock actually sold and trans.
ferred to such persons was stock owned
individually by the said Davis, and the
money paid by such purchasers was not,
nor was any part thereof. received by the
said company, but was received and ap-
propriated to their own use by the said
Davis and Bryan.
Referred to as Exhibit B.
Petitioner attaches hereto, marked Elk
hihit B. copy of an advertisement issued
by the said company in January, 1906,
being one of the advertisements under
which the stock Of the said Davis was
fraudulently sold by him as treasury
stock as aforesaid
And petitioner Is informed end be-
lieves, and therefore AYERS that since the
organization of the said company, the
said Davis and Bryan sold its stock.