Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-12-16
CLAIM FRAUD N DEAL
SALE OF STOCK OF MERcHAN.
Disc AT ELpoRA ENJolNEp
BY COURT.
LoRKEY COMPANY TRADES
STOCK FOR IOWA LAND
Goods FaIl' Into Hands of Local Firm
and Closing Out Sale is Stopped
Company Claims Land Was Misrep-
resented and That They Have Been
Defrauded of Large Sum.
Special to Times-Republican.


Eldora. Dec. l6.-Sheriff Walsh
served an injunction on Wilson & Ne
well at $50 last evening, restraining
them from disposing of a stock of
merchandise in this city which recently
came into their possession and which
they had just started to close out thru
a special SALE
The stock formerly belonged to the
Lorkey Company. About four weeks
ago the Lorkey Company made a deal
whereby they exchanged this stock Of
goods for a half section of land in
Dickinson county. Iowa, taking the land
in the deal at $3.50 per acre. The land
was to be taken by the Lorkey Com
pany subject to mortgage of 1000,
and as balance of purchase money for
the land above the mortgage. The Lor-
key Company gave their stock of goods
and promissory note for $500.
The Lorkey Company thought they
were dealing with c. D. Osgood, real
estate man of Estherville, Iowa, but
very soon after the invoice of the
stock was completed and before the
store was opened for business, the.
stock was transferred by Osgood to e.
e. Newell and A. P. Wilson, of this
city.
AIlege Title Not Good.
The abstract for the land was not
turned over at the time the deal was
closed and the Lorkey Company now
claim that when they did finally get
the abstract it was unsatisfactory in
many ways and they claim further
that after investigating the land they
find that it is not worth to exceed $50
per acre.
Wilson & Newell are real estate men
and both live at this place. The matter
was taken up before Judge Lee at
Webster City Wednesday and he grant
ed a temporary injunction as afore-
said The petition gives the following.
and other reasons, as to why the relief
prayed for should be granted:
oseood Not Owner.
Plaintiffs aver that as they are in
formed and believe Osgood never
owned the property described in said
contract, altho he represented himself
to be the owner thereof, but that Os-
good was merely acting as agent or in
connection with the defendant. Wilson
& Newell and under their direction.
and plaintiffs aver that there was
conspiracy entered into between Will
son & Newell and, 0sgood to obtain the
stock of goods from the plaintiff in ex-
change for land at a grossly exagger-
ated valuation, and that all Of the pro-
ceedings were In fact, for and in be-
half of Wilson & Newell, and that. as
the plaintiffs believe, the said stock
had been turned over to them and is
now in their possession and that they
and their associates are deriving the
benefit from the fraud which has been
perpetrated upon the plaintiff. That
as shown by said contract aforesaid, it
was specially agreed that "all the land
to be conveyed by the party of the first
part shall be free from all incum-
,brances" and that in truth and in fact
said land is not free from all incum-
brance but that the same is subject to a
lien of mortgage for s1,1s0 executed by
j. A Newell to Catherine O'Toole.
Stock Worth $4,000.
Plaintiffs also aver said contract was
induced by fraud and false representa-
tions and that they have been induced
to part with the stock of goods which
invoiced substantially at value of
$4,000 and to give their note for S1,S00
for which they have received prop
erty which is not worth over the sum
of $4,000 above membranes. and that
they have been cheated and wronged
and defrauded out Of property to the
extent of at least $4,000 by reason OF
the fraud and false representations as
aforesaid.
The plaintiffs elect to rescind the
contract and to demand back their
property and tender back the property
received by them. and that written no.
tice therefore has been served upon
the said Wilson & Newell and that
Wilson & Newell have no property
in their names subject to execution,
and that the plaintiffs believe that If
said property is allowed to be seld that
they will be deprived of any adequate
remedy for the fraud perpetrated upon
them.
Wilson & Newell have gone to great
expense advertising a special sale of
this stock and opened the doors of the
store for the sale yesterday morning
at s O'Clock. 1t is generally thought
that they will put up bond for the
value Of the stock and continue the
sale.