Daily capital journal. (Salem, Oregon) 1903-1919, 1913-07-03
Circuit Court Jurist Rescinds
Contracts Given to Cor
poration.
IMMENSE FACTORY TALE
Feller and His Wife Led to Believe
That Big Townsite Was to Be
Established on Land.

Judge Galloway this morning rem
dered decree in favor of the plaintiff
in the case of Francis Feler and wife
VS.. b. n Garrett, H. H. Hoffman ct al.
in which he rescinded all the contracts
entered into between the plaintiff and
defendant and roundly scored the get
rich-quick corporations which, he says,
are frequenting the rural neighbor-
hoods with "sunbeam propositions
whereby the gu1lible farmer is led to
believe that the rainbow has surely set
on his farm and that bags of pure gold
await him.
This is case containing about as
many features of an unsuspecting farm
er grasping risky opportunities as has
ever been introduced in the Marion
county courts, according to Judge Gal
loway. 1t seems that Feller was ap-
preached by Garrett and Hoffman with
a promising plan to establish townsite
to be named Armstrong on the plain
-titf's land. The defendants led the
plaintiff to believe that they were the
duly authorized agents of what they
termed the United Surety company, a
corporation organized for the purpose
of establishing towns and building
monster factories in rural districts. Mr..
Feller entered into an agreement with
the defendants whereby they were to
receive the deeds to certain lands own
ed by the plaintiff and sell them off in
lots. The defendants planned and plat
ted Cor plotted, as Judge Galloway
says) the property and assured Mr.. Eel
Ter that they would purchase the neces
sary material for the construction of 4
100000 factory, establish bank, sell
the lots at large figure and perform
other work necessary to the establish.
ment of town or city.
Found Them Out.
After having turned his land over to
the defendants, the plaintiff then dis
covered that the whole affair was a
fake. He found that there was no such
corporation in existence as the United
Surety company, and that the so-called
agents had not one cent Of capital with
which to establish any factory or town
site. He also discovered that the de-
PENDANTS, in order to deceive the people
and sell the lots laid out, has paid Rol-
lin Caughey, a Portland painter, $500
to paint a long drawn imaginary pic
ture of the "Town of Armstrong. J."
This picture showed monster factories,
banks, mercantile s t a b | s h m n is,
streets and alleys. Mr. Feller further
investigated, declares his counsel, and
found that the defendants had con.
tracted large debts before they had dis
posed of one acre Of the land. They
purchased a large amount Of lumber
from the Spaulding Logging company,
states the complainant, to be used in
the construction Of bank on the town.
site, but it later developed that the
state bank examiner refused to issue
them a permit to transact a banking
business They contracted large debt
with Portland German paper for ad-
vertising which they were unable to
pay, declares the plaintiff, and Mr..
Feller's attorney, John H. McNary, de-
clared this morning that he defended
Mr.. Feller in an action brought by the
hoNeP"INl w ltNuNtI lut COhb VI luS
advertising.
Scores wildcat Promoters
"I find in investigating this matter,
another one of those cases wherein
gullible farmer has fallen prey to the
get-rieh.quick corporation, or body of
men, said Judge Galloway this morn.
ing when he rendered his opinion. "Ev.
cry day there is some person bilked and
blinded by that class Of sunbeam pro.
moter who goes through the country
with elaborate schemes to gain wealth
by following certain carefully doctored
plans | am surprised that the plaintiff
should become a victim of such people,
but, as l stated before, his case is one
among many Of the same character.
"These wildcat promoters go about
the country with very clever schemes
and they are generally men Of class
that are clever and shrewd. The farm
er, or city man also, should keep clear
of these people as their schemes always
turn out absolute failures.
"ln deciding this case in favor Of
the plaintiff j will, as a warning for
him to keep his eyes open in the fu.
ture and not get caught by swindlers,
assess him the costs Of the suit am
confident that Mr. Feller has been
grossly deceived in every particular and
/ therefore rescind all contracts and
cancel all deeds. W