Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1921-02-28
ABE RENICK AND
PALS MUST DISCORGE
Huge Blocks of Stock in Nc
Combs Oil Co. They're Not
Entitled to, Says Judge


the McCombs Oil Company at s.
share by slicktongucd sales
men about two years ago and
now would be glad to receive Of
fers of 20 cents a share for their
stock will be interested in the fol-
lowing opinion handed down by
Judge Kirby at Louisville Satur-
day. The Times reports it as
follows:
Holding that shares Of stock in
the MCCombs Oil Company issu
ed to ]. {. McCombs, Abram
Rcnick. Paul Nj. Wade, ]. Nc
I-aughlin and Rosario Maggie,
the latter three of New York.
should have not been issued to
them in the formation of the oil
company, Judge Samuel b. Kirby
entered an order today voiding
the issuance of the stock and also
directing the Clark County Ma
tional Bank of Winchester. ky..
to surrender all stock held by it
to escrow to the corporation tOI
be cancelled on the books thereof
and 10 be held Cs treasury stock.
1t also was adJudGcd that II. y.
Moore, of New York, one of the
original promoters, has no inter
est III any stock in the corpora
tion. MCCombs and Moorc en-
tered into an agreement i'll New
York August /, 19l7, whereby
MCCombs turned over to Moore
"a acres OF oil leases in Estill
county, ON which several wells
were then producing oil, and also
1900 undcvclopcd acres in Knott
county. The corporation was
then formed under the laws of !
Delaware and a scheme entered
into whereby the country was
flooded with stock at not less
than IS cents Il share. From the
the net proceeds OF the sale Me
Combs was first to be paid, and in
fact was paid $4,000 for the
property. after which he was Civ
en- 100000 shares OF stock. Mhiic !
Rcnick was given 10000 shares.
Wade and Mclaughlin 25O,OOC
shares each. and Maggie. a New
York lawyer, 100000. a total of
1.55hOOO shares.
The corporation was formed
with 100000 shares. the re-
maindcr Of which was placed
with the Winchester bank. w. 9.
Head. former mayor Of Louisville
was given 25O,OOO shares for the
use Of his name, Judge Kirby.
said. but within Il month became
acquainted with the true situation
and withdrew from the enter.
prise and surrendered his stock.
"That was Il tidy little fortune,
that 25O,OOO shares at the then
market price" Judge Kirby said.
"Nattcrs OF such value are not
usually surrendered as matter
OF caprice by the ordinary indi-
vidual.'
Aftcr asking the question, was
there d conspiracy Judge Kirby
said: "Criminal conspiracy may
be difficult to prove, but i'll the
civil courts the wrong may be
established as any other fact.
Moore i, not unknown to this
court. and from the little glimpse
we get of him i'll court he seems
to be an old hand at the bellows. !
He i, accompanied by McLau%h-
lin and Wade. professional stock
statesmen from New York, and by
New York lawyer. Rosario
Maggie. They proposed cor
poration under the laws of Della
ware. Why should the corpora
ton 6c organized under the laws
Of Delaware when the property
is owned in Kentucky and the
place Of business also in kcntuc
XIV? Were the requirements of
the Kentucky laws too stringent
for the enterprise they had inI
mind: OF that there can be no
doubt.
"Shesc men and Renick organi-
zed the corporation and became
its officers and together arranged
to parcel out the amount of graf
uitous stock. There can be no
doubt of the conspiracy or that it
was fraudulent. Counsel for de-
PENDANTS urge that they arc
showing their good intentions by
surrendering to the company oil
of this stock except 543752
shares. If this were true it would
not avail defendants any more
than an assurance from the con-
fidence man that the gold brick
was several thicknesses more
heavily plated with gold than us
ual. However, the record shows
that the proposed surrender was