Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-04-20


Oil Company, of par value of $3.50,
by r. c. Valentine to Ross w. Hub
bard, Aug. Z, 1913, which kept gossip
in the business district busy because
of the alleged methods oy which the
negotiations of the sale were con-
Quoted, is being reviewed before Judge
Willett. One of the three cases grow
ing out of this oil company, the suit
brought by Hubbard against r. c. VAL
entlne, of this city, his father, E. E.
Valentine, and Wesley Martin, Of Web
ster City, was begun in the district
court late this forenoon.
By it Hubbard is seeking to recover
the $3.50 he paid for the stock, and
interest. His alleged grounds for suit
and recovery are that he was forced
by threats of criminal prosecution to
| buy the stock. In these forceful meas
ures Hubbard alleges R. G. Valentine
was aided by his father and Martin.
The latter is a lawyer.
Both sides have lined up for legal
battle of some proportions. The aver
ments in Valentines defense tell quite
different story Of why Hubbard
bought out Valentines interest in the
oil company.
Huhbard's Claims VoIuminous.
Instead of making summarized
statement of the claims for Hubbard,
r. E. Northup one Of Hubbard's attor-
neys, read to the court the long petition
which was filed against the Valentines
and Martin early in 1914.
Northup read that up to Aug. I. 1913,
Hubbard had $1,000 invested in the
Consumers Oil Company. and r. c.
Valentine, who controlled the business,
owned 663 shares. 1t had been the
practice of both Valentine and Hub
bard, the lawyer read on, to issue
checks for money for their own use
when they saw fit, and that as re-
suit of this practice both had antici-
pated their earnings from the COM
pany.
This condition, the petition read. ex-
listed July 1, 1913. when Valentine went
on a vacation. He left with Hubbard,
who handled the books and finances of
. the company, blank checks signed r.
c. Valentine, which Hubbard was to
use for himself or company business:
Hubbard did use some of these checks
and charged them to himself. July 10
"
on a vacation.
Purchased Under Duress.
Continuing, the uetition says, that
soon after Hubbard returned Valeptine
called him "in private" There Valen-
! tine demanded, it is alleged, that Hub
/. bard buy all the stock Valentine owned
at par value of $3.50. Hubbard, II
| is alleged, refused.
rro ~; oil ic
have warned Hubbard that he (Valen-
/ tine) had something On" Hubbard
that he would make public and dis
grace Hubbard if Hubbard did not buy.
Further it is alleged, Valentine threat
| ened to prosecute Hubbard, and
charged him with appropriating money
| of the company by issuing its checks
! for his personal use.
| "Shake Hubbard Down." Alleged.
The petition continues in detail how
! Valentine kept Hubbard locked up un-
| til / 80 of that afternoon, when Valen-
| tines father, E. E. Naneltine, and
Wesley Martin, arrived from Webster
City. The three it is alleged, threat
ened Hubbard with quick and dire
criminal prosecution Unless he bought
out r. c. Valentine.
To this Hubbard, the petition con-
fesses eventually consented, and he
was given until noon of the following
day to close the deal, failing Of which
criminal prosecution was TO start at
once.
Making good on his promise. the pc
tit.on says that with cash and notes
Hubbard was able by noon OF Aug.
to buy out Valentine. The note he
save was for $780,
Most Of Defense Deniais.
In the answers filed by c. II. D.
Boardman for the Valentines, and by
Martin, as his own attorney, genera
denials are made for E. F. Valentine
and Martin of all the sweeping charges
alleged against them.
More specific defense and detailed
explanation Of the reasons for the sale
Of stock are made in the answer filed
for r. c.. Valentine. In it it is alleged
that when Valentine took charge of the
books and finances, while Hubbard was
on his vacation, he found serious ir-
regularities in the accounts Hubbard
! had been keeping, and found funds
missing. When he asked Hubbard fol
an explanation, when Hubbard re-
turned. Hubbard is alleged 10 have sale
he had no explanation to make, ant
that he had devoted certain Of the
company funds to his own use.
Valentine Offers to Buy.
The answer says Valentine told Hub.
bard he was going to have the books
audited, and that he proposed to buy
out Hubbard on a valuation as showr
by the audit. Hubbard objected K
having the books audited, the answer
continues, and likewise objected t.
selling out to Valentine, but instead
that Hubbard offered to buy out Val.
entine for $3.50. To this Valentine
finally agreed.
Energetic denial is made that valen.
tine threatened Hubbard with crimina
prosecution, but that the sale of valen.
tines stock to Hubbard was Hubbard,
proposition as means of settling tn.
financial affairs Of the company.
The elder Valentine and Martin, ant
Hubbard, who is living now in Okmul
gee, Okla, are all here for the trial.
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