The Gorton Trust

Letters & correspondence

• Near the top:
  "Notice: Contracts or promises are not binding upon us until they have been formally accepted in writing with the signature of either the trustee and president or the treasurer, thereon."
• In red, on the left edge, is:
  "The Gorton Trust is the designation of the trustee under an agreement and declaration of trust date March 6, 1919, and recorded in the office of the county clerk and ex-officio register of deeds of Caddo County, Oklahoma, and all persons dealing with it must look solely to the trust property for the enforcement of any claim against the trust, as neither the trustee, officers or shareholders, assume any personal liability for obligations of the trust."
• Finally, again in red, along the bottom edge:
  "Please address all communications to The Gorton Trust and NOT to individuals thereof"

	Mr. Jno.[sp?] Olle Racine, Wis. Nov. 5, 1923 Dear Jack: We wired you just now to the effect that if we knew positively you would succeed on the deal we could hold pressing claims two weeks longer if necessary (or perhaps still longer) ["longer" is a guess, looks more like "longun"] but to do so we must know what to expect so can promise accordingly - I know you and Tom are working and neither of you got where you stand except by work - I know this job makes both of you an extra burden, but it is worth while - If it succeeds I will take care of Tom in a fair way as I told you, but don't want to hamper him by any direct promises. Both of you know me -
	Magnolia are now taking all Cement oil & they would not do this if bottom was not reached. Other Okla & Calif friends are dropping very fast as you probably know. All of the operators are effecting []e, "ting" obvious, an overall guess] and working to create a shortage of crude in 1924 so as to make up what 1923 has cost them - Corporation dept. of Okla say they will force Magnolia to finish [???][might be 'pipe'] line to Cement if several land owners will enter complaint and I am told such complaint is in process. Deducting 55c per bbl. hurts the [???][sta??/slat?, possibly 'stake' or 'state'] income as well as others and Okla is not a friend of Magnolia or of any Standard Oil Co. - and never was as you know from the old original Std. oil unit [might be 'suit'] that broke up Std. - Weather is again fine & sunshining - Regards to all of you Toomau [Toomace?]also - Think I can throw line now, Yours Sincerely Geo. Gorton
	Dear Tom: - Nov. 29 _ 1923 _ I have your wire of yesterday saying you had turned papers over to Cahoon 4 weeks ago. Thanks - I was not doubting for a minute that you had done all you could do Tom - There are some things I don not quite fathom - I am sure Cahoon would also do all he could do, but there is one man in the saddle (and his horse is getting old.) whom I do not and never will understand. You know whom I mean - I am extremely sorry for him, and when a man studies matters over he cannot help feeling sad and very sorry fro that kind of man, even though sometimes it makes us "very mad" - Yours Sincerely Geo. Gorton -OVER-
	[starting about two inches from the top] Things seem to be simmering away slowly and not getting us anywhere - They do not seem to realize that we cannot hold out much longer - I have spent all the money myself that I dare spend to save things and they are worth saving and if saved will pay big. Conditions are better now than in months past. We have a suit that goes to trial Dec. 12 and it cannot be delayed, as have had it set ahead 3 times before - this suit is against a drilling contractor for some $25,000 - casing he took of ours & sold and we cannot fail to win at least $12,000 - our lawyers say $20,000 - It takes in expenses & lawyer fees - $1000 - in advance & I personally cannot see my way to put up the amt. in addition to what I am now advancing each week - If Racine does not hurry the suit is lost as we shall not have sufficient time to get our lawyer properly posted at Amarillo, Tex. If you can put in a word that will hurry Racine up [now writing up the right side]do so. I don't know as you can however here is some more [now upside down at top of page] good news - Magnolia are starting to connect up tank farm to line, to Run Cement's Oil - W.R.Ramsey - Okla. City, a big oil man & on the inside says, Cement oil will be $3.00 by Feby. 1924 Cement crude has been found to contain a substitute for TURPENTINE, being 30% of such and it is the only known crude oil [now writing along left column] in existence having this It is very valuable therefore - GET THIS LAST TWO NEWS ITEMS TO CAHOON PLEASE - ( I am clear around Tom, and can go no further - G.G ) [last in reference to being out of space on the paper]
	Dear Tom: - July 15 _ 1926 Replying to yours of 13th find enclosed (if you please) endorsed note. Did not remember I had endorsed first one. We got a nice little well 45 days ago #4 wagner [wogner?], which has paid back to us a little more than $5000 - Quick it came in - #5 wogner has been finished over a week but only got it pumping yesterday It has about 8,000,000 Ft. of gas but did now flow [slow?] oil it would produce as the oil gradually drained the gas out - Pressure not enough to raise a column of
	oil 1800 ft. high - I think it will pump about 60 bbls. 50 at least, and will net us about $3500 or $4000 for 30 days as this is a lighter grade of oil than any other in Cement - Started drilling #6 wogner this am. & down 300 Ft. this is in the middle of Wogner north 40 I am expecting it will be same oil & as large as #5. When this is done we will move 1/2 mile due north of office on Marchand 160 which has no well on it and the S.W. corner where we will drill is 1/4 mile from Magnolia well drilled 90 days ago that is still pumping 100bbls. Hope to get as good in ours - Things coming along very nicely as we will soon have our production doubled - #6 wogner should do this - Have been a little under the weather last 30 days - Hope you are well Tom - My regards to you and everyone that needs same - Yours G. Gorton
	At some point, litigation was started vs. The Gorton Trust, for reasons still not well understood by this author. This triggered a fairly complex series of events, which resulted in multiple business entities being involved (the extent of which is not fully understood by this author). However, based upon some records discovered in July, 2010, some of the affected corporations included: The Gorton Trust, Betty G Petroleum, Cala-Belle Oil, and Concrete Petroleum Co. At a guess, the latter is named based upon the location in Cement, OK. Some letters regarding the litigation have survived, and were recorded as George Gorton Machine Co. form # 1931 The litigation was started by Clifton Strom, Joe Jagersberger, and F.Lee Norton.

Published litigation vs. 'The Gorton Trust'

• Set Gorton Case for New Judge (15 Feb 1951)

  [Transcribed from a cut-out newspaper article (newspaper unknown)]
  "After more than a year's delay, the Gorton Trust case is scheduled to resume action ... case involves a motion for the appointment of a receiver to replace George Gorton [II] as trustee. It was brought by attorneys representing Clifton O. Strom, Joseph W. Jagersberger, F. Lee Norton, "and on behalf of all other shareholders of The Gorton Trust." The action charges mismanagement and abandonment of the trust. It also demands a complete accounting of the trust be made since its inauguration March 6, 1919. George Gorton has denied all the charges. And he alleges he as kept all records required of a corporation. Progress has been hampered since its opening on June 16, 1948, by counterclaims and attempts to sell the trust to several oil concerns. The trust owns oil wells and leases in Oklahoma."
  [An internet search shows that Joseph W Jagersberger (b. Germany 1884-1952) of Racine married Amanda Olle (possibly related to John Olle of the letters?) Joe Jagersberger is also the name of the driver of the 1911 Indianapolis 500 car built for Case by George Gorton. coincidence, or 'small world'?]
  

• Gorton Trust Case nears a settlement

  [Transcribed from a newspaper article 7/17/51 (paper unknown)]
  Judge Harry S. Fox, presiding over the Gorton Trust case in Circuit Court, today ordered representatives on both sides to come to some agreement now or he will set a definite date when attorneys must submit their arguments on paper for his judgment. Court hearing today was held more outside the courroom than in as attorneys representing George Gorton and those representing 128 shareholders met in the judge's chambers to sift through points of disagreement. Filed in 1948
  It was expected that the case would end this afternoon. The case was first filed with Circuit Court in 1948. It has moved from term to term because of counterclaims and attempts to sell the trust. The suit charges Gorton with mismanagement and seeks to have Gorton removed as trustee. Gorton has denied the charges and on counterclaim asks the court ot declare the trust agreement valid and a continuing agreement.
  New Offer Made
  A new offer was made to sell the stock and assts of the trust this morning. The buyer was not revealed. Attorneys adjourned to discuss the new terms which include selling the stock at $33.50 a share and paying the court costs and attorneys fees. The stockholders originally paid $100 per share.

• Set deadline in Gorton case

  [Racine Journal Times article 8/1/51]
  Purchasers of the Gorton Trust shares have set Aug. 26 as the deadline for stockholders to turn in their shares at $40 each. In a letter to stockholders mailed today, George Gorton, continuing as trustee until sale is completed, said, "unless a total of at least 12,000 shares are deposited with the First National Bank and Trust CO. by Aug. 26, the purchasers reserve the right not to purchase any shares."
  Approved by Court.
  By an agreement which has been filed in Circuit Court and approved by Circuit Judge Harry S. Fox, Lloyd L. Karsten and A.J. Farfel, of Houston, Texas, consented to purchase the entire 15,000 shares of the Gorton Trust at $40 a share. The letter states: "All shareholders desiring to sell their shares will assign their certificates to Floyd L. Karsten and A.J. Farfel and deposit them with the bank, and all signatures assigning certificates must be guaranteed by a bank." The bank sets Sept. 25 as the time limit for completion of purchase.
  In the agreement, George Gorton agreed to deposit 7,700 shares of his interests, and E.W. Lawton, attorney for Gorton Oil Shareholders, Limited, stipulated he would deposit 2,3112. These 10,012 shares must be deposited before Aug. 17. Other shareholders have nine additional days in which to turn in shares.
  Conditions set up
  If at least 12,000 shares are in by deadline, or if purchasers consent to buy less than 12,000 shares, then, on approval of titles and dismissal of Gorton Trust case, the bank will pay $40 a share on all deposited stock. The entire agreement, court's approval, findings of fact, conclusions of law and judgment dismissing the pending suit are on file with Edward F. Daley, clerk of Circuit Court. Judge Fox's signature on the judgment will not be made until sale is completed.

• Gorton Case Ends; In Court Three Years

  [Transcribed from an incomplete newspaper article 7/18/51 (paper unknown)]
  Gorton case ends; in court three years
  Shareholders in the Gorton Trust will get 40 cents on their invested dollar as the result of an agreement reached in Circuit Court Tuesday afternoon that climaxed three years of courtroom wrangling. Under an agreement reached between 128 shareholders and George Gorton, trustee, shares in the Oklahoma oil land and leases owned by the trust were sold to Floyd C. Karsten and A. W. Farfel, Houston, Texas, for $600,000, or $40 a share for 15,000 existing shares.
  Who pays Costs
  In addition, the Texas oil men agreed to pay attorney's fees and court costs stemming from actions brought by the shareholders against the trustee since 1948. These costs are estimated near $100,000. Attorney for the buyer told the court that $600,000 cash would be placed in a local bank for shareholders to collect according to their investment. The original shares cost $100 each. Owners of the trust certificates can take their certificates to the trust department of the First National Bank where they will be held pending details for payment which are being worked out.
  Except for minor details which attorneys assured the court could be negotiated without difficulty, the law suit against George Gorton charging mismanagement was near end. Agreement is being perfected for final disposition by the Circuit Court.
  Still to be Cleared
  Still to be cleared are:
  1. Appointment of a new trustee to handle affairs
  2. Setting a deadline for shareholders to turn in their stock
  3. Acquisition of 80 per cent of the shares (12,000) before the agreement takes effect
  On the last point, however, attorneys indicated that it could be waived if necessary. So far, the new owner will hold 10,1012 shares, including those of the trustee and of the 128 shareholders who brought the suit against Gorton. Attorneys for the buyer indicated they expected no difficulty in acquiring 1,988 more shares.
  Voicing objections to the agreement were representatives of Ohio and Stanolind Oil and Gas Co., that has been and still is operating the properties; and two shareholders not represented by counsel, Herb Hoffert and Hal Gittings. It was learned that some independent shareholders may seek and injunction to prevent the agreement from going through because they feel the property is worth more than what they are getting for it.
  Representatives of the Ohio Oil Co. told the court, "We frankly do not feel we have had enough to say on negotiations. The Ohio company has been operating the oil wells and has been interested in purchasing the property from the beginning. Had we been given opportunities, we probably could have met the the offer made by the Texas company."
  E. W. Lawton, attorney for the shareholders, informed the court that the Ohio concern had ample opportunity to make a fair offer ever since the property was put on sale.
  Stanley Ryan, representing the Texas buyers, said he contemplated the agreement would be signed in two days. Attorney Charles Quarles, representing Gorton, concurred.
  Counsel Polled.
  Circuit Judge Harry S. Fox, of Janesville, Judge in the Twelfth Judicial District, who agreed to sit in the case for Judge Alfred L. Drury, polled each of the counsels on both sides. He said we wanted no loopholes and wanted it on the court record that all the attorneys were satisfied with the stipulation. There were no dissenters.
  The trust was created on March 6, 1919, and executed by George Gorton, G. E. Montgomery, S. T. Gorton [Sophy], Clint C. Steinberger and Gorton Oil and Refining Co., by George Gorton, its president.
  Gorton sold a one-half interest in the properties then held by him to Ramsey Petroleum Corp. He said the sale was made to provide funds for carrying out terms of the trust. The corporation agreed to operate the properties.
  Gorton pointed out that to properly operate the oil leases and lands, it is necessary to drill oil wells at great expense and that
  
  (Turn to page 2, Col. 4) [end of clipping]
  

• [No title for the article]

  Transcribed from an unknown paper 8/27/1951
  Final Order and judgment in teh Gorton Trust case has been filed in Circuit Court. Judge Harry S. Fox has signed an order dismissing all charges against Trustee George Gorton brought by a group of shareholders three years ago. Sunday was the deadline for shareholders to turn in stock at $40 a share. The stock was purchased in July by Floyd Karsten and A.W. Farfel, of Houstin, Texas. In the suit originally brought in 1948, Gorton was charged with abandonment of the trust and mismanagement. The court dismissal is the final business and stems from an agreement reached by both sides. It was not revealed whether the new owners of the stock acquired 80 percent of the shares (12,000) by deadline time, a part of the sale agreement.

• Set New Date for Stock Sale

  Transcribed from an unknown paper 8/28/1951
  Buyers of the Gorton Trust stock have set Sept. 10 as the last day on which shareholders can turn in their shares at $40 each for cash.
  Can Get Money
  Attorneys for the purchasers, Floyd Karsten and A.J. Farfel, today announced that shareholders who left their certificates with the trust department of the First National Bank can now obtain their money. Those who did not turn in their certificates may still do so, the attorneys said, but the offer to buy all shares will expire on Sept. 10. Arrangements have been made with the bank whereby certificate holders can have 90 days within which to perfect ownership of stock, provided their certificates are left with the bank before the deadline.
  Waive Own Terms
  After Judge Harry S. Fox approved the terms of a settlement on July 26, the purchasers placed on deposit in teh bank $600,000 to guarantee the purchase of all outstanding shares. They had the right to elect not to purchase unless a minimum of 12,000 shares was guaranteed to them. It was learned that the owners decided to waive the right.

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