OCR Text |
Show MEXICAN LUMBER COMPANY 3 ' DECLARED TO BE F.RA.UD PHILADELPHIA, Feb. 23. Cluing Ing thaf the concernwas organized to defraud tho public and that it Is Insolvent, Insol-vent, four stockholders of the Inter-i Inter-i national Lumber & Development coin- i , ni ..r- pany, with offices here, today filed a bill In equity asking for the appointment appoint-ment of a receiver. Judge MoPherson fixed March 5, for a hearing. The corporation was chartered under un-der tho laws of Delaware and has a capital of $6,000,000 It wns organ lzed for the development of tlmboi and agricultural lands In Mexico. It Is alleged the promoters got possession pos-session of 288,000 acres of Mexican land that had originally cost $1S0,000, and floated a $0,000,000 corporation. Subscriptions were offered and, it is alleged, when purchasers failed to pay monthly Installments of 55 a share, tho contract provided that they should lose all right to tho stock. Forfeit money, It Is charged, did not go Into the treasury but was appropriated appro-priated by ofilcorB and directors and that $1,000,000 and upwards has been forfeited Instead of eight per cent dividends being paid from profits, It is charged, they wore paid from money reqolved for stock subscriptions and that the company had paid out $l,q00,000 up to February 20, 1912, |