The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-03-21

Iering the purchase of considerable
land in Canada, on which he had paid
$4,000. Some time during 1911 the
iTranscontinental Townsite company.
Ito, was formed, with capitalisa-
ton Of 100000.
The company voted to turn bask
| to st. John the money he had PAID
for the land and to divide the capital
stock between him, the Wisners and
Crocketts.
This placed all OF the capital stock
In their hands and the company was
operated by them from the fall of 1911
until the fall of 1912. Then stock
holders meeting was held in st. Paul.
| Wade, Partners Counsel.
Judge Wade was counsel for the
Wisner-Crockett interests and had
power OF attorney for them. Though
the records show that up to that time
| the company had operated at loss,
the stockholders voted q 200 per cent
dividend and to increase the capital
stock to s750,OOO
They also agreed, by resolution, to
make the 200 per cent dividend pay
able in stock, and, accordingly, $780,
loco Of capital stock was divided among
the Wisners, the Crocketts and St.
John, making their holdings 100000
in stock, for which nothing had been
paid except the $4,000 to st. John to
reimburse him for the money he had
paid for the land.
Then St. John came to Chicago to-
sell the treasury stock, of about $450,-
coo, and the resolution provided that
| 1t be sold at not less than par. st.
John says he told the Chicagoans thu
real facts. They say he did not.
Instead, they declare that he rep
resented to them that the 100000 Of
stock already issued was full paid and
that the whole proposition was safe.
guarded by giltedged securities.
Contract With Grand Trunk.
1.-THE Transcontinental Townsite
company, Ltd, entered into contract
i wicsl the Grand Trunk Pacific De-
Ivelopment company, composed of Of
ficers Of the Grand Trunk Pacific rail
road company. This company operates
under q royal charter from the domin,
ion government.
| by the terms of the contract the
railroad company would determine the
direction and extent of it's new lines.
Before this information was made
public it was to be transmitted to tho
st. John company, and he thereupon
would proceed to buy land at tho
points where townsites were planned.
THE townsite company had to pay
for the land, survey it, pay all attend
ant expenses, present to the Grand
m nd fOv
and right OF way and pay to the de-
velopment company one-ha!f the sale
price or the lots"
Arrest Follows Conference.
For many months the Chicago stocs-
holders, according to Toner, had been
trying to get some OF the Canadian
officers into the United States to hold
conference as to the future possibil-
tiles Of the concern, and after many
letters to Wade the latter recently
photographed to Attorney Toner, who
had been retained as counsel for tho
Chicago stockholders. that he would
Ebe here yesterday. A conference of
the stockholders was then called in
the office Of the attorney.
| Toner, after an argument with st.
John, left the office and went to the
court Of Judge Jacob Hopkins, where.
he asked that warrant be issued
fcharging st. John with getting $4,000
from him through confidence game.
| The warrant was served on st,
John while he still was In conferences
with the stockholders. He was later
released on bonds of $4,000. This
faction was taken against st. John, ac-
icording to Toner, to prevent his get
ting out of the country.