'A statement to the creditors of the Russo-Asiatic Bank that their "legitimate interests" in the Chinese East~ fern Railway are threatened by the Soviet's sale of the line to the Japan-fosse and Manchoukuo authorities was issued yesterday by Mr. Perey Chu, Mquidaior of the Bank.
'The statement sets forth that the right to. build the railway was granted by the Chinese Government to the Russo-Chinese Bank, later the Russo-Asiatic Bank, and' that on formation of the Chinese Eastern Railway Company "its entire capital of five million roubles was subscribed by the Russo-Chinese Bank which has been since then the sole owner of the shares of the railway." The Statement further maintains that under the Sino-Soviet agreement of 3924 concerning the railway, the Soviet Government "made itself fully liable for the shares of the company held by the Russo-Asiatic Bank" as well as for all claims against the line before March 9, 1917.
Since, according to the statement, this part of the agreement has not been carried out, "the Soviet Government as not the legal title to the ownership of the railway and cannot therefore dispose of it"
The statement reveals that on June 23 and July 18, 1093, respectively, Mr. Chu sent notes tom. Bogomotov, When they first took up their home in California, Mr. and Mrs. Hughes Aequired certain tracts of land in the Fair Acres and La Mesa districts of Santa Barbara, which they believed to be potentially rich with veins of the liquid "Black Gold," and true to their convictions the precious sand now yielding them thousands of gallons of all per day.
Only last year, however did Mr. Hughes turn from the diversion his flower gardens to plunge serious-Ty into all production. He engaged fu expert geologist and surveyor, Purchased the best equipment pos-Tible and with his own staff of Grillere set forth in all earnestness fo bring in a. well. After several months of concentrated efforts, achieved his signal success as an all operator last August when he Brought in hie frst well in La Mesa with a ow of 2.000 barrels of clean li per day, which was immediately Fun'into the tanks of the Seaside Oil Company with whom he had contracted for its possible output, Success at Tale Acres Immediately following this complishment he removed his drilling machinery, having the only steel des-Hick in the all fields of Santa Bar-ara, to @ tract in Fair Acres and commenced further operations. In' October last, only a few months ater, he had the sensational success of bringing in a well with an initial flow of 4500 barrels a day. This exceptional yield aroused the into fest of several major oil companies, including the Consolidated Oil Company of which Mr. Harry F, Sinclair chairman. Mr. Sinclair, lost time in arriving at Santa Barbara and acquiring @ Tease of 37 acres in the Mesa and Fair Acres tracts, while other anxious operators were endea-Youring to sign leases in these twe heavy production areas.
Notwithstanding the success he has lately achieved after years of retirement, Mr, Hughes is continuing his vocation and fs at work drilling into other potential veins in his Santa Barbara properties.
Text read from the printed page and cleaned; old type leaves the occasional error.