East Oregonian : E.O. (Pendleton, OR) 1888-current, 1914-01-19
OPERATIONS Of
SUNSET Co. HALTED
BLUE SKY STATUE Is RESPONSE
BILE FOR PROMPT ACTION
by COMMISSION.
tIccnsc Fee Is Refused Until Certain
Actions Are ExpIalncd--Cnmplai
Have Bccn Filed With the Com
mission Regarding Conduct OF the
company. Declares Watson.

SALEM. Jan. I7.--AcIions of
prominent Salem citizens, including
state Treasurer KAY. are seriously
questioned by Corporation Commis-
sioner II. A. Watson in letter ne ad-
dressed to w. NJ. Cherrington. presi-
dent OF the Sunset OH company, an
Oregon corporation. He questions
yhear motives in supplanting the Ore
ran company, which is delinquent in
ses license fees and whose preliminary
statement was not approved by the
corporation department. with cor
poration organized under the laws of
Arizona and given the name of the
Sunset Oil and Gas company. Com
missioner Watson refused to accept
the licens fee of the Arizona COM
gAany until the motive back of the
company's operations is satisfactorily
explained.
Commissioner Watson states that
yhe Sunset OIL company was organiz-
ed in this state March 8, 1910, with
sn authorized capital stock of $780,
So0.
"A large amount of this capital
stock has been sold. for the most part
ss ] have been informed, to Oregon
Neopie." he states. This company is
officered by ". NJ. Cherrington. pres
ident; Thomas B. Kay. vice president:
<. c, Armstrong. secretary; its attor-
tey is Senator John A. Carson. and
among its directors are DR.. r G.
Cartwright and H. C. Meyer, all OF
salem. Its property is located in
oregon. and all of its operations must
Of necessity be in this state"
He cited the fact that the prelimi-
nary statement of the company was
not approved by the auditor of the
corporation department. When il
was passed to the examiner for ex-
Summation, Secretary Armstrong re-
ssuesteG the examiner to delay his Wis
* and investigation of the company
properties.
Nothing has been filed in this Of
free by the company TO show that il
tas transferred its holdings to the
arizona corporation" Watson advis'
ed Mr.. Cherrington. Nothing ha:
been filed to show that the stock.
holders of the company have author
tsed such procedure. No showing ha:
Teen made that the interests of tn,
stockholders nave been protected.
mo steps have been taken so fal
ss this department knows to pay tn
,jest owing TO the state or to dissolv,
cne Oregon corporation.
Complaints on File.
Complaints have been filed with
the department regarding the conduc
OF the company. and its method o
rransacting business so that il is th'
duty OF this department to prccee,
with caution in any departmental &C
zion concerning it.
Il can see no valid reason why Ore
Eon men, owning Oregon property
kinder course of Development By mon
@s advanced by Oregon stockholders
shculd abandon an Oregon corpora
-rion for company formed in Arizoni
70 be composed of the same officer
and directors. the same stockholder
sand tc control the same property.
Chapter 341 C. l.. 1918. says tina
stock may not be issued. sold or ne
gotiated without permit of this de
partment. In the face of that statut
You. according to your records, hav
negotiated all of the oufstandin
stock OF the oregon corporation in ex
change for stock in the new com
ipsny. This was done without an
showing made to this departmen
whatsoever. with the knowledge Q
hhe law and its penalties.
Under ali the circumstances
cannot file the documents herewit
returned until this department is sal
ssfied as to the reasons back of tn
procedure attempted. In any ever
shey cannot be accepted for filing ur
I'll the oregon company has been dis
solved and the conflict in nams
eliminated
State Treasurer Kay said that f
vas president OF the company whe
81 was first organized. but since the
ne has not taken any active part
SIS management.