Arizona republican., 1916-05-29
AR|z0N|ANS IN
 WESTERN FUEL
Y. E. Pollock of Flagstaff Interested in a Deal with Other Arizonians Involv- ing Between Two anc Three Million Dollars
Especial to The Republican,

SAN FRANCISCO. Cal, May 2S.- Between two and three million dollars is said to be involved in a deal now pending for the sale of a controlling interest in the stock of the Western Fuel company Of customs prosecution fame, to a syndicate of wealthy bankers and coal men of Arizona and New Mexico, and C. P. Heaton of Los An geles, representing the Pollocks of Flagstaff. Arizona.
 This was the admission last night of James N. Smith. vice president and general manager of the Western Fuel. The deal has been on for some time, he says, and involves something like a score of Western Fuel stockholders. the principal one of which is the es- tate If the late John L. Howard. The transaction is not expected to be closed for thirty days.
 The PollOcks have vast interests in the Southwest. Their headquarters are at Flagstaff. Ariz., where they have control. it is said of the Arizona Gen. ,ral Bank, of which T. F. Pollock is president They also have coal inter csts. and ranching and cattle interests in Arizona and it's nearest neighbor, New Mexico.
 Heaton, wko is their Los Angeles representative. has been carving on negotiations with the Western Fuel He also is personally interested in the pending transaction. it is said.
 Smith said last night that the deal would not mean his leaving the Vest crn Fuel. but that he would he re- tained in his present capacity He said he was not It liberty to disclose the exact sum involved in the stock sale. owing to the large number of stock holders interested in it.
 II is said that the Pollocks. who are extremely wealthy. were induced to take a controlling interest in the West ern Fuel company by their close friend ship with James NJ. Smith, and their oesire to broaden their operations. This also will cut down the number of West ern Fuel stockholders and make the concern more nearly a close corpora ton.
 The present officers of the Western Fuel are: John Lawson, president: James E. Smith vice. president: D. C, Norcross. secretary. and C. E. Schmitt treasurer. Those may be changed when the leal Is consummated.
 According to Acting United States Attorney NJ. \. Thomas, the transfer of stock of the Western Fuel company will have no effect on the suit of the Crited States government against the corporation for SS65.000 as a penalty Tor the alleged evasion of payment oi customs duties on imported coal
 The Western Fuel company is the defendant in the action" said Thomas The government is not interested ir the personnel of the stockholders. Tn, corporation is sued as corporation.
 of course" Thomas continued. eth, stock is under a cloud at present or account of the governments suit. Tn, liability attaching to stock on accoun of the suit is transferred from the ol, owners to the new"
 lt .s expected that the hearing of tn suit will begin before Federal Jude Van Fleets court, probably in Sep tcmbtr
 The holdings over which the Pol
 'N' "IN tlltli dSSOtldLeS Will gail control include two mines at Nanaimc 5. C.. one of which has recently bee developed at cost of s1.250 0Ot Eventually the output of these mine. Jt is said, will be between E OOO an >ooOo tons of coal month. The cor poration a.so owns nearly 50,OOO acre "i lard at Nanaimo, and has abou 1000 employees there It has recent purchased and equipped a new load lrs and unloading and storage plant z the foot of Market street. Oakland. z cost of s250,000. It owns one steam ship-the Acapulco-and has cbartere two others-tEe Thor and Tangred
 In connection with the governme, prosecution of the Western Fuel con pany some time ago three of it's o 1oials were convicted of conspiracv defraud the government. These we- James B. Smith, vice. president ar general manager: Frederick c. Mill superintendent. and Edward H Nave weigher.. Prison sentences hang ov all three men. their appeal havir been denied. but plea for a rehearl, by the United States Circuit Court
 Appeals has been filed.