Evening journal., 1911-07-01
ASK RECEIVER
FOR OIL co.
Applicants AIIege a Shortage
Of $4,000 In COmpany'S
Accounts
GOVERNOR TENER
DIRECTOR OF COMPANY

Application was made before Judge
Bradford in the Upited states Circuit
Court here to-day for the appointment
Of a primary receiver for the Federal
Oil and Gas Company. Of which Cow
ernor Tener Of Pennsylvania, is d.
rector.
The bill was docketed on June l6
and was filed by Frank r. Baker, J. r.
Mitchell, John A. Paul and James A.
Chambers. all of Washington, Pa,
near Pittsburg. Osborne Mitchell, of
the law firm of Mitchell and Reed OF
Washington. Pa, and Former Chan
cellor Nicholson appeared in behalf
Of these stockholders. and Andrew c..
Gray of the firm Of Ward Gray and
Neary. appeared for the company. The
concern is Delaware corporation
and for that reason application was
made here for a primary receiver.
The argument will be continued
here on August ?.
The Federal. Oil and Gas Company
was put into receivers hands on April
26 i'm Oklahoma with debts asserted
by it's directors to have amounted TO
S26S 600 among which figure q rnyste-
rious loan of $4,000, negotiated dur
ing Governora Teners campaign iast
fall, and for which virtually all as
sets Of the company were pledged,
and a shortage in It's accounts of
about SS7,500. The president Of the
company. G. j. Kiskaddon, has disap-
reared, together with his bookkeener,
IT is now alleged by the stockhold-
ers seeking primary receiver under
the jurisdiction OF the United States
Circuit Court of Delaware the home
of the Federal OH and Gas Company
that the Oklahoma reoefveTship pro-
ceedings have not been ip the interest
Of the stockholders of the company,
but have been conducted by men
closely associated with the misman-
agement Of the company as its direc-
tors.
The new charge is also made that
25 per cent. Of dividends paid by this
corporation during It's two pears ex-
istence were not paid out OF earnings,
as asserted by the directors. but were
paid out of the proceeds from the sale
OF capital stock
Certified copies Of the Oklahoma
proceedings We're filed in Judge Brad
ford's Court to show 4hat the rs-
tition for a receiver in Oklahoma was
filed by one director and that one of
the receivers appointed, W. A. Chase,
of Nowata Okla, has also been a di-
rector Of the company since its forma-
ton. Stress is laid upon the fact that
under the Chase. receivership no effort
has been made to apprehenc the miss
ing officials OF the company. to de-
mand an accounting from them for
the SS7 500 shortage, but that on the
contrary. Chase has declared that he
considers such prosecutions beyond
his jurisdiction.
The papers filed also record that at
a meeting Of stockholders in Wash
ingfon. Pa. on June 4, Chase aud
Charles =. Baker, director Of tho
Federal Oil and Gas Company strep-
iuonsly opposed the suggestion that an
Eancfllary receiver be appointed for the
stockholders in Pennsylvania. But de-
spite Ahis. RAeasr, as soon as he anl
his fellow dlSators were served with
due notice OF the proceedings iusfi-
tuted here in Delaware for a primary
receiver for the stockholders. rush-
ed into the United States Court in
Pittsburg and had Chase made a "
oeiver IN fhat district also iogetheF
! with the Common ealth Trust S9snA
pany.