New-York tribune., 1908-04-15
CALLED STOCK JUGGLER
W. S. LOGAN ESTATE SUED.
Mining Company Director Alleges
Waste or Conversion of 5000 900.

John ]. Gibbons. $ director OF the San Luis
Mining Company, of Mexico. West Virginia cor
poraton, has brought suit in the Supreme Court TO
recover than 100000 alleged TO have been
lost. wasted converted his by the late
Walter S. Logan who president director and
counsel OF the company. Other defendants beside
the Logan estate Myra B. Martin. who
director and secretary OF the company. and who is
executrix OF Mr. Logan's will; HolIister Logan.
executor OF the will and Eliza h Logan, Janette
Logan Bayles and Walter s. Logan. benehciaries
under the will and Britton Davis. George B. Agnew
and the San Luis Mining Company.
Gibbons, who says he was elected director OF
the company November 26 1905, alleges that
Logan attorney in New York and was
gagged In the promotion of mining companies In
1900 1901 he organized the Lucia Mining Com
pany. Sociedad Anonma, in Mexice. and trans
ferred to it certain mining properties which he and
his associates had acquired promoters in
change for large majority OF the capital stock.
The San Luis Mining Company subsequently
organized by Logan. with capital stock of ST.
600 600 in one hundred thousand shares OF SO each
and became its first president. director and coun-
sell
Gibbons alleges that the first board of directors
composed OF persons under the control OF Lo-
gan and that the board OF directors turned TO
Logan and his friends all the capital stock of the
San Luis company in exchange for the stock of
the Lucia Mining Company Logan receiving the
chief interest in the stock.
Twenty-Five thousand shares OF the stock
then placed IN the treasury Of the San Luis com
pany to provide for the development of its proper
ties and this stock sold. Subsequently the
capital stock was increased three hundred thou
sand shares. which were placed in the treasury and
sold IN the same manner. more than s1,Soooo0 be-
ing realized from its sale.
Logan is said to have collected all moneys sent
70 the conpany for the sale OF treasury stock and
converted it to his and the use Of other
companies in which he interested Logan is
also charged with having transferred 10 his own
use 10 per cent of the amount realized from the
sale of treasury stock and neglecting TO account for
the same TO the extent Of more than sl2500o.
The shares OF treasury stock are alleged TO have
been sold az prices varying from 81 10 $50 share.
and although there stock in the treasury for
sale at these prices. Logan is said to have sold
his personal stock to those applying for treasury
stock and diverted the proceeds te his own use
Acting as president Of the company, he is alleged
TO have sold himself treasury stock at prices far
below the market value and resold this stock at
the regular market price and credited himself with
the profit thus made. amounting to upward OF
10000.
Rv fsIs,fvinE the accounts OF the company and
r- other actions in violation OF his duties. he is
said to have diverted other large sums 10 his own
use the exact amount being unknown
The complaint then asserts that Logan, in pur-
s1Iance OF scheme and design 10 obtain the con-
troll Of the San Luis company, used funds thus
diverted from It's treasury in the purchase OF
shares Of the treasury stock, In conspiracy with
r n.
the company, caused TO be issued to himself large
amounts OF the stock below market prices. and OBJ
tanned control Of ;he company through the owner
shin OF over 10000 shares of its capital stock
Myra B. Martin is alleged TO have been direc-
tor and secretary of the company since It's forna-
tion and to have been a conhdante and confed-
crate OF Iogan's and TO have used her position 10
aid him in carrying out his schemes she Is alleged
~ have in conspiracy with Logan, acquired large
sums OF money the property Of the company, and
,,sad M. funds thus diverted Tn the purchase OF
treasury stock at less than its market value.
Logan died on July 1s. 1905. and his will was ad-
-nitted TO probate August Of that year ftollLs
ter Logan being appointed eN'Od anu
Martin executrix- -. ,-..
The defendant. Britton Davis ABOUT NoNehoe'
,oos acting as agent OF the defendant Aene"' -
alleged to have entered into a certain ayr
whereby Davis agreed to loan TO Miss Martin
,,.no,o o,6 IN take as collateral and receive as
bonus shares In the San Luis Mining COMPANY
which were standing in the name or the Logan
estate or in the name Of Miss Martin. and on the
,ar,a dav the defendants. Hollister Logan and
1Jvra y Martin. divided all OF the greater por-
tIor NJ the stock among the heirs at law and
Iegatees Of Logan. the total amount being about
1na ClD shares OF stock Of the company. These
shares we're delivered to Agnew as security for the
loan on November 1s. 1906. and ne and Davies re-
caived from the executor and executrix 1900
sbaras as bonus Davis Is alleged 20 have had
full kuowIedga OF the manner in which Logan and
Mics Martin had acted with regard 10 this stock
c;ihhons demands an injunction restraining
Aensw from assigning transferring selling
the stock pending the determination OF the suit
and similarity restraining the defendants. Hollister
Logan ami Myra r. Martin. He demands that
these two defendants account for the official con
duct OF Walter s Logan in the mana cement OF
disposition she funds and property OF the San
Luis company. and he asks that decree issue
compelling them TO pay over moneys which Logan
may have acquired transferred them or lost
wasted Finally he asks for receiver.