, 1922-04-21
CcOnunned rrOm Pas, one1

BAR company holding IS per cent Of
its stock. allege n conspiracy between
thu holders of the remaining 20 per
cent OF the Bair stock, who arc named
as defendants in the receivership ap-
rlicatioat and the KaaDming cnur5
rany to defraud the applicants Of benc-
fits from their Bair stock holdings.
An important and significant devel-
.opnent in litigation took place Thurs
day afternoon when Judge T.. B. Ken
neEy granted tho petition OF owners
Of royalty rights in the Bair's produc-
ton from the Lost Soldier field to in
tervene as defendants. The petition
strenuously opposed by T. ].
ODonnell OF Denver, chief counsel for
n. T. Clark OF Pittsburgh, and the
Omar on & Gas company. the stock
holders in the Hair company who seek
70 have a re- eiver for the corporation
appointed.
The royalty right owners-the Raw
Inns Development company, Fred o.
Funk n w. II. Taylor-Intcrvenec
on h ground that tho manasement
Of the company, OF which Clark and
the Omar company complain. hes been
under proper management and there
fore has served the best interests of
the royalty owners. The Intervention
OF the royalty owners is significant in
view OF the contention OF Clark ard
the Omar company that the BaIr d.
re%ctorate deliberately a sold the
BARS production to the Reasoning OIL
company at inadequate prices, with
the intention OF defrauding the BaIr
company.
The Rawiins DEVELOPMENT
owns a 5 per cent royalty in Rair pro
duction, Funk a 2 per cent royalty
and Taylor a I per cen royalty. II
the convention OF Clark and the Omar
company that h Bair production had
been sold at an Inadequate price Were
well founded, the royalty owners
would have suffered a direct financial
loss as a result of such sale.
The hearing of tho Omar-Cla-k ap-l
plicntion for a ~receivership for the
Bair company, now in its third day.
is progressing 81 slowly that IL ap-
pears probable several weeks will be
required TO ear all OF the 20 witnesses
have been summoned. .
What suggested a legal bombshsit
also exploded in hearing Thurs.
day.
The Omar company, n Pennsylvania
corporation of which Clark was the
chief promoting spirit, and Clark, in
their petition for a r~eceivership al
legged that directors representing the
owners of rs per cent of the stock OF
tn Bair company q manipulated
the management of that corporation
with the deliberate intention of serv-
ing the interests of the owners of the
rs per cent OF the stock at the expense
OF the interests OF tho owners OF the
other 25 per cent of tho stock, the lat
ter, the pleadings alleged. being the
Omar company and Clark.
The development that suggested the
~torpedoing OF this allegation as d ten
able aust for action by the Omar
company and Clark was the answer OF
that Clark himself, in his capacity of
of the Bair company, at the
meeting of the company in
July last, had voted to ratify the past
management Of the corporation's af.
fairs of which he nov complains in
the receivership action and which are
the basis for the action. Regardless
of the question OF the correctness of
ciark's and the Omar company's al.
legations regarding the management of
the Bair company's affairs-and the
defendants to the action very specific
ally and with voluminous detail of re.
buttal challenge tho correctness OF
these allegation-the reply Of the de-
fondants placed Clark in the attitude
of having approved. as a director of
the Bair company, the conduct OF the
affairs during the period
which he now charges was character.
lied by deliberate and cunning mis-
management.
The defendants named In the appiis|
cation OF the Omar company n Clark
are tho abr company, the Kasoming
Oil company, II. e. West, ]. B. Haz-
lett, J. l. Havice, o. e. Garrett and
e. Brimmer- The application
Tor the r~eceivership is based. express
ing it as briefly as possible, on the
claim that the directories of the Bair
company and the Reasoning company
are identical with the exception OF one
director of each company, the excep-
ton on the Bair directorate being
Clark and on the Kasoming directorate
Havice; hat Clark as a director of the
Bair company represents rs per sent
the stock of that corporation and
the directors OF the BAR company who
also are directors of the Kasoming
company represent the remaining rs
per cent of the Bair stock. and that
directors of the Bair company who
also are directors of tho Kasoming
have managed the affairs of
the Bair company with the deliberate
intention Of prostituting the Bair com
pany's interests to the interests of the
company n to the ruin of
the interests of the owners Of the rs
per cent of the Bair company's stock
represented by Clark. The alleged
mismanagement is set forth in a petit
zion of approximately 100 pages and
includes allegation hat the petroleum
taken from the Bair company's hold
ings in the Lost Soldier field, Wyo-
ming, has been sold to the Reasoning
company at an inadequate price for
the purpose, it is alleged. of depriving
the owners OF rs per cent of the BARS
stock of the return form the sale OF
this oil which would have accrued to
them had 1t sold at an adequate price,