Evening star., 1924-06-03
MIDDLE STATES OIL
co. RESENTS CHARGES
Receivership Action in Federal
Court Alleges Fraud, Mismanage-
ment and False Accounting.
ORDERED TO SHOW CAUSE
Former Governor of Oklahoma and
Son Among Defendants.

NEW YORK, June "a receiver
ship action against the Middle States
Oil Corporation was begun in federal
court yesterday on charges OF fraud,
mismanagement and false accounting
preferred by a stockholder against
Charles N Haskell, chairman of
directors and former Governor OF
Oklahoma; his son, Charles j. Has
kell. and p. d. Saklatvala, president
or the corporation.
d.sa Eedsrai Judge Knox OK oboereo obo% cause use
next Friday why receiver snoaio
not be appointed.
William Shivers, the complainant,
is a broker and an owner OF o'ooV
shares OF stock in Middle StaIes Oil
and in the Southern States OH Cor
poration, which latter concern re-
Gently was acquired by Middle states.
Haskell. his son and Saklatvala are
represented as so per cent owners OF
the business, including the SUD
salaries, Reliable Securities CORPORA
tion and the Unity Securities Cor
poration.
Charxe Scheme to Defrnud.
Shivers complaint includes a charge
that purchase of the Southern States
Oil at $14.75 a share was not baSed
on the true value of the stock, and
that the deal was scheme to de-
fraud thirty-five brok erage houses,
through whom Haskell and his as
Sociates are alleged to have manlpu-
lated the stock last December, OF
5000 900.
Shivers charged further that false
Middle States Oil Corporation were
issued to the public:' that dividends
were paid from capital: that its stock
was purchased from capital. and that
Haskell ordered the destruction of all
records of two of his subsidiaries,
the Wichitan Petroleum Company
and the Eureka Producing Corpora
ton.
1000. 900 Shares F1oated.
Capital stock of Middle States Oil
consists Of 5000. 900 shares at SO each.
The complainant put the total liabili-
ties Of the corporation and its subsid-
iaries at $39. .000, 900 and their assets
at s26.5o0.ooo. although, he alleged.
Haskell and his fellow officers last
June reported net assets OF $65, 10000.
Besides the Haskells and Saklatvala
the complaint names Charles B. Peters,
T. John Leahy, John +. Casey. John F.
Stevenson and Joseph D. Wyckoff.
Statement by Company Head.
The following statement was issued
tonight by p. F. Saklatvala. president
of the Middle States Oil Corporation:
of William Shivers. alleging that
have been a party to, or in any way
connected with, any manipulation of
the stock of Southern States Oil Cor
poration is entirely false and libelous.
Neither personally nor in associa-
ton with any one else have I ever
bought or sold a single share of that
corporations stock on the curb mar
ket. The other allegations made against
me in this complaint are similarly
without basis in fact and constitute a
complete tissue of falSehood
The entire matter is in the hands
of my counsel for proper action against
the parties directly or indirectly re-
sponsible for this libel
In this suit instituted by the cor
poraton the charge was made that the
receivership action was begun to aid
manipulation Of the stock in the stock
market. The corporation declared that
it was public knowledge in March the
Southern Oil stock was to be pur-
chased.
THE public may be assured that
this action will not only be vigorously
defended. but that the plaintiff and
those behind him will be made to un-
derstand that they cannot enter into
any conspiracy to manipulate and de.
press the market price of Middle
States stock with impunity."