Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1920-07-03
Organizers and Statesmen of
Missouri Valley Cattle Loan
Company Operated SWind|e
Game, Petition Declares.
CONSPIRACY TO BLK
FARMERS IS ALLEGED
Prominent Bankers and Ranch.
men Acted as Bird Dogs and
Pointers in Skin Game, AC-
cording to Plaintiffs.

An involuntary petition in bank
ruptcy, filed yesterday afternoon in
United States court, against the
Missouri Valley Cattle Loan. Co.,
alleges amo..g other things that the
company w,.o conceived forl fraudu-
lent purposes aud that the receiver
ship proceedings Of this week were
irregular.
The petition was signed by Noah
J. Peterson. G. S. Satterfield. l.. G.
Fuller, w. H. Brook. Fred w. Me
Nally, Floyd Davidson and Thomas
NJ. Anderson The petitioners set
forth in lengthy detail the cjrcum-
stances of their stock subscriptions
to the company. Mr.. Peterson al
lcges that he was induced by w.
B. Johnson to subscribe for $l0,-
600 worth Of the stock, paying S.
25l.60 in cash and taking up notes
for $500 each given by w. H.
Brook. L. G. Fuller and L. A. Rob-
crts. Mr.. Alexander relates that he
also subscribed for $4,000. paying
half in cash and giving a note for
the balance.
Claim Wholesale Fraud.
The petitioners allege that "the
company was conceived in fraud
and from its very inception was a
stock-selling scheme by which the
present officers and agents and orig
iual promoters conspired to defraud
farmers, ranchmen and others, by
selling stock upon the representa-
tion that the company was being
organized to do legitimate loan
business, while in fact the said cor
poration was organized for the pur-
pose of defrauding people out of
their money by selling worthless
stock"
1t further is alleged that "some
banks and some stockuen ard cat
tie men acted as bird dogs, or
pointers to point out prospective
subscribers, and a specific alleea-
tion is made that f. Smith. cashier
of the Nisha Valley bank OF River
ION, Ia, acted as one of the bird
dogs and that his bank was ore of
.he bird dog banks.
Collision Is Charged.
In connection with the appoint
ment of c. E. Burnham and Joseph
s. Fradenburg as receivers this
week, and alleged irregularities Of
those receivership proceedings, it is
alleged in the petition that there
was collusion between the follow
ing: :.
c. Z. Burnham. G. D. Butterheld,
r. NJ. Currie, R. S. Johnson, G. c.
Junkin. V. w. Giddings, c. B.
Gano. P. T. McKillip, L. D. Gilman,
w. Il. Graver, McNish Cattle Loan
Co, Jesse c. McNish, r. w. Nc
Grew. Richard NJ. D. Childs, Pal
mcr w. Wharton and c. H. Kel-
scy. =
Another allegation is that the
stock-selling promoters represented
to prospective subscribers that the
company would pay 80 per cent on
common stock in 1919 and 8 per
cent on preferred stock and that
the notes given by subscribers never
would have to be paid, because div
idends would meet those obliga-
tions.
G. P. North of Cherokee, Ia, and
NJ. L. Donovan of Omaha were the
attorneys who filed the petition.
About Transfer of Notes.
The petition further alleges that
the officers of the company wrong
fully assigned and transferred vari-
Gus notes and mortgages in the
sum of $4,000, and it is also al
legged that there are other creditors
to the extent of 100000.
c. A. Sunderland and F. Smith
are charged with having sent cir
culars to stock subscribers with in"
tent to defraud.
Reference is made in the petition
tc contract with the McNish Cat
tie Loan Co. for tract of land,
and another reference is made to
the payment of $1,000 a month to
{. Z. Burnham, G. D. Butterheld
and F. w. Currie.
The names of the stock promot, d,
ers are given as follows: ]. J. Ready
Huntley, w. B. Johnson and B. w,
Giddings.