The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1918-03-05
LOCAL ATTORNEY FIGURES IN
BIG OIL SUIT.

IRVINE, KY, March Suit fer
s712,500, growing out of a transac-
ton in oil properties, was brough.
here recently by j. Fred Miles, for
merly OF Tulsa, Okla, now of Licking
ton, KY, against the Union Oil
Company, which has offices here anc
at Cleveland, Ohio.
The petition, one of the most VOL
luminous and exhaustive documents
ever f1led in Eastern Kentucky, was
prepared by Messrs. Robt. B. Frank
lin, OF Lexington, and Robert C. Tai
bott, OF Paris, and Judge Ed. G.
O'Rear, of Frankfort, attorneys for
the plaintiff.
The Union Oil Company, the peti-
ton recites, is a Kentucky corpora
ton. holding leases on 1880 acres
of land in Estill and Powell Counties.
the greater portion being in Estill
County. Its capital stock is $4,000,
and its officers are w. R. Thompson,
Jacksonville, Fla, President; Nor.
wood Johnson, Pittsburg, Penn, Vice
President; Carl j. Weidman, Cleve-
land, Ohio, Treasurer, and NJ o.
Thompson, Irvine, KY, Secretary
j. Fred Miles is an experienced Oil
operator from the Oklahoma field,
and is one of the pioneers in the Ken
lucky field. His attention was called
to the properties of the United Oil
Company by James Hills, who has
the distinction of having drilled the
first thirteen producing wells in the
Tickey Fork district and of having
induced the building of the Cumber
land pipe line to the Estill County
field.
About May 1, 1917, the petition
| recites, j. Fred Miles was introduced
to Carl j. Weidman and other stock
holders of the United Oil Company,
and it was agreed that Miles should
send his field men to the property to
| make an Investigation of its approx
mate value, with the understanding
| that if the reports of the invest1ga
tors should be favorable Miles would
enter into negotiations with the Unit
| ed Oil Company for the purchase OF
the property.
The reports we're favorable, and
on May 10 Miles went to New York
and consulted his financial hackers,
former Governor Myron T. nHerrick,
of Cleveland, and William F. Bon
bright & Co., bankers of New York,
| to the end that he went to Cleveland
and on May Is, the petition sets
forth, closed an agreement with the
United Oil Company, through Carl ].
| Weideman, under which he procured
an option on the properties at price
to be $1,500,000 net cash to the COM
rany.
The following day, Miles, accord
ing to the petition and substantiateo
by papers filed as exhibits, advised
the company that he would take the
property at the price stipulated, sub
ject to the settlement of litigation
then pending in the Estill Circuit!
Court, concerning portion of the
| w. l.. Marcum farm, covering approx
imately SO acres above the cliff, and
known as the Christopher tract.
A 100000 corporation was Or
| ganized to take over the properties
of the United Oil Company through
! ]. Fred Miles, together with the
holdings of j. Fred Miles, and into
| this corporation with Miles and Bon
bright & Co. came ]. /. Lamprecht
of Cleveland.
The s1,5OO,OO0 to be paid the Unit
ed Oil Company was provided, and
Miles and his associates in the
100000 corporation, the petition
states, called upon the United OIL
Company to deliver the properties
with titles clear, with the exception
| of the Marcum litigation, to cover
which it had been agreed, $18O,OOO,
would be held in escrow.
But the petition recites, defects in
the title were discovered and mad;
known to the buyer and seller and
| their attorneys.
Thereupon Miles and associates IL
the $4,000, 900 corporation demanded
of the United Oil Company that Il
clear up and deliver to them COOS
and merchantable titles which t.
date, according to the petition, the
United Oil Company has failed to DO
1t is generally believed in this sec
ton that the holding of the United
Oil Company combined with the hold
ings of J. Fred Miles were WORTH
s4,5O0,OOO to $5,000,000. At the
time of the purchase by Miles thu
United Oil Company had 40 we'll
producing 2,290 barrels daily, ant
so or so undrilled locations.
Pa "a "a -