Evening journal., 1919-09-12
Flagrant Fraud In Fisheries Co. Sale Alleged

y Robert Pennington before Pennington ha,
e paid the sum of s225,0OO to the com
pany
/. That the pretended conveyance of tb
/ title in the steamer James NJ. Clifford {,
] Pennington purports to have been madi
/ on August Is, 1917 and the same wal
registered in the Customs House in vii
) mington on September II, 1917; that
the pretended conveyance Of the title il
the factory TO Pennington was made OF
T August % 1917.
That Lofand and Lank, as officers OF
/. the Company, did also and contrary e
the resolution make a pretended con
yeyance of the unexpired' lease of the
company unto Pennington
That the sum OF $4,000 called for
by the resolution has never been paid
by Robert Pennington to the Lewes Fish
cries Company, as was well known by
William C. Lohand and James +. Lank
and the other defendants above named.
That Loland being the President and
Manager and Lank the SECRETARY and
Treasurer OF. the company. fraudulently
diverted the moneys of the company and
made false entries in the books in order
to pretend that the S225.0OO called for
by the resolution had been paid by
Pennington 20 the company.
That before the resolution of August
! 10, 1917, had been voted for, the 81 800
received by Lohand as President of the
company om-James w. Elwell & Com
pany IN part payment under the con-
tract of sale of the steamer Henlopen,
! had been deposited to the credit and had
been entered on the cash book of the
said company.
That on August l3, 1917, Lohand and
Lank pretended TO open an account on
the books Of the company with Robert
Pennington That under the pretended
account, Lohand and Lank caused to be
entered in the ledger of the company as
a credit TO Pennington ON the $225,0O0 the
very Sl7,5OO which had actually been
entered Nn the cash book of the COM
pany August ., 1917
That on or about August IL, 1917,
Elwell q Company made "A further pay
ment of SliS,75O 10 Lohand as president
under the contract of sale of the steamer
Henlopen.
That Lohand and Lan< fraudulently
undertook TO apply the said Sl4S,750 as
credit on the account of Robert Pen
ngton and fraudulently caused to be
entered IN the cash book and the day
book of the company under the pre- !
tended account with Pennington Sl4S,1 $50. !
That Lonand and Lank fraudulently /
caused 10 be entered on the books of the |
company under the pretended account |
with Pennington the sum of $4,000 as of |
August 20, 1917 and the sum of S53.750 |
as of August 81, 1917 That in fact /
the said amounts so entered on the
books of the company had been obtained
through the sale of products of the fac
tory manufactured prior TO August 2l,
1917. That therefore the said moneys
belonged to the Lcwes Fisheries Com
panv under the terms of the resolution
of August TO- and could not lawfully be
applied as a payment on the price of the
factory and steamers by Pennington un-
der the said resolution.
That Loiiand and Lank pretend that
they had the right TO make the entries
on the books of the company of the
sums of 1900 and Sl4s750. being the
paid by Elwell and Company to
Lofland as president, under the contract
of sale of the steamer Henlopen. and TO
apply said moneys as If the same had
been paid by Pennington under the reso-
luton of August 10, on the ground that,
as they pretend, the said steamer Hen
lopen had been sold by Loaand to PEN
ngton on August 81. 1917, and that in
executing the contract of sale to Elwell
md Company August 3 and in receiv-
ng the sums of money paid under the !
contract of sale by Elwell and Company,
1ofland was acting as the agent of PEN
ngton. But your orator denies thai
my such sale to Pennington was or could e
ave been lawfully made and denies thas
lohand did or could have lawfully acted G
IS the agent of Pennington in executing $
he contract Of sale to Elwell and Com.
any or in receiving the money paid by
.lwell and Company under the contract a
# sale. d
That the other individual defendants II
bove named connived with Lohand and e
.ank in their attempt to treat the i
money so received from Elwell and Com Il
any as if the moneys belonged TO PEN a
ngton and were paid by him to the a
ewes Fisheries Company under the u
esoution of August TO- "
That Lolland who had been operating j.
he factory on and prior to August 10,
9l1, as manager, continued To operate q
he factory from and after the said u
ate and up to August p, 1917 pretend o
lg TO be acting as the agent of PEN u
igton, and manufactured large guam. I
tiles of oil, scrap and bait between the b
aid dates. Z
That Lofland and Pennington converted 81
nd appropriated the manufactured &C
roduct ON hand at the date of the reso- u
ltion, the coal and the product manu- ST
lctured from August 10 TO August p.
ll7, pretending the product and coal to u
e the property of Pennington, and sold u
ne same for large sums of money, and al
that the same are the moneys
Pennington, and have failed and re- al
lsed 10 account for the same to the 10
'mpany or TO your orator as receiver VI
the company. u,
That lank, Joseph and Tunnell have 81
nnived with LOiiand and Pennington in
lie said wrongful act and have aided y1,ss
ID abetted them therein. The same 81
arge is made as to moneys received for IN
oduct manufactured from August 22 "s
September !, 1917 pr
That shortly after the meeting of the s''
ockholders of August 10. on or about ~ ~
lgust 2l' 1917, new corporation under \, {
G name of Lcwcs Oil and Chemical ue
'mpany was created aud organized wa
der the General Corporation Law of "a y.
'laware. the said new corporation being uil
e of the defendants above e-named: Soi
at the new corporation was created io'
d organized for the purpose of sup -,
lnting the Lewes Fisheries Company W.
d in execution of the fraudulent ia ia
leme hereinbefore set forth. ~ ~
That the nominal incorporators of the Ja
W company consisted of Robert Pen sc,
,ton as the holder Of 90 shares and a
Lillian A. Brownhill and Samuel II. m,