The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-06-24
TAs MERCHANTy UNION EXPRESS COMPANY

TINS MERCHANTy UNION EXPRESS COMPANY
J#aMt tA ~-o~~>~~~~~~>~~~~~~>~--~~-& Il III #N N& 8s
Ckarsas Of Iusolveacy. Munincent Extrava.
snnces bribery and DIismanng nieat-A Re-
| ceiveY Wanted.
SUPREME COURT.
Stephen r. Waterbury. psaisa6, o. Ermore r. R,S.
WiLiaw H. SsRard, Jr, Waiam O. Beardslee, T. ~
xnanp, Theodore n. Pc~erUy H. W. SIocum, Clintos r.
/ BtSckxs Elliot @. Sorkc and John A. Green, Jr, de
1 Jeal0sfG-An announcement WIS mado in the HERALr
OF yessrdav. dated at AuDarn. r. TO the effect that
proceedings had been insttated against the Merchants
Union Esprsa Company. charging is with Insolvency.
and asking for ths appointments Of receiver Above
wiz b found the names Of the parties to The action,
md appended 10 copy II the complaiat-srsi to be
had in the county q New York-and q copy % which
has been hlsd m the Supreme Court Of this disric-
The complaint Of the plaintiff above named respect
fully shows 70 tbs Count a. foIlows:-
Mrx;-Hsretofose' and n the year 1898 The dcfeud.
Auburn in the Ssats OF New York. for the psrposs Of
forming joint stock association 70 be- styled the Nor
Ssomd-Subssqusutly thereto and FOR the purpose Of
inducing the puoc generally to take pecaniary In
issued prospectus setting forth the supposed benefits
to DO obtained BY the acquisition Of such interest," the
Company shs fact that the company had been Organized
vita capital stock Of sa5 900 CO., divided into 10000
shares ana alleging in articles nine aud tsn OF such
prospectus ~ follows
Ix.-CAsu CarrAL RxeUnsD. business
Tor cash and al proves ta.t the daily cash re-
SURPLUS for Svasnds Win paving bushes. ASSUMED
relatively small ess capital only MY viii &c reaSed win
thus BE- seen thst small percentage only OF the susscp
and Il Is conaseny believed tsSt The receipts viii there
x.-CAss. How MApr--rw, per cent of the .osk sub
.crbsd WIN be reqrea At che ting Of subscription and the
tune will Ne made intervals the business
made viii ihs fully Sesc not exceed ten per
of the stock subscribed
said prospestus, and especially relying also upon the
supposed honor and integrity Of the defendants above
stock Of the said Merchants Union Express Company
that the plaintiff informed and believes OF the
hundred ana niy thousand shares INTO which the stock
thousand shares subscribed for and that the said
company was organized BY written articles Of associa
ton and then and there, by means thereof, became
common copartnership, with the privileges added
thereto which conferred by the laws OF the State Ct
New York upon joint stock associations and that
OF said subscribers, and this plaintiff werc
and severally personally liable for the debts OF the
said company after execution agalns. the Presidents
returned unsased that the defendant Ross and 10
che President Of tho said company, the defendant
Beardslee il the Treasurer thereof, the defendant
Knapp sthe Secretary thereof the defendant Pomeroyis
attorney thereof the Socum Backus
Sorke and Green together with the said Ross
and Beardsiee, constitute the Executive Committee
Of all Of the and property Of the said company
that various assessments made by the defendants
the subscribers called upon pay the same that
shs painan paid the amount required 70 DO paid by
his SUBSCRIPTION, and after such payment be received
certcats purporng TO give 70 this plaintiff Atty shares
in the sock Of the Merchants Union Express Company
and which oetllcas he has now II his possession and
which signed BY the defendant Ross President and
the defendant Knapp 40 Secretary, and countersgned
BY the defeAdant Rsarisee Treasurer; that,
plaintiff is informed and believes, Il. w. Ieaven.
worth aiso subscriber 70 one hundred shares %
sad stock, and duly paid twenty-five per cent thereon
and duly received therefor for atty
shares Of Sad stock and prior to the oe
plaintiff Who now owns and holds the same that a. the
plaintiff informed and believes, O large number or tho
subscribers % said stock when calls were made upon
pectus, became dissatisfied herewith, and refused to
pay any further sums upon Their Subscription that IN
order procure further funds for Tho business the
said company tho said defendants OF them by
virtue OF some pretended official right and authority,
said company from hundred and hfty thousand
hundred thousand, aad sold said Increased shares
TO whom hoy elected; and that this pIaintin
advised OF ouch increase until After ne had paid the
F,urfA-rhat as this plaintiff q Informed and believes
the defendants hare, without any authority SO to do,
ana without rscsxins any pseuaIssy benefit harorom
cusodians and tusses Of said stock and OF the pro-
perry Of the SAID association, wronsfay. and against
shares OF the stock for purpose the
supposed influence Of the recips0ts thereof upon the
various bOards ~ railway directors who manage
lines OF rail~ays In Northern Statss
stock ~as 50 given, not In csstncaies similar to those
issued 70 tho paatn but In Certificates which state
upon their thai the shares thereby represented
Liable 70 any further assessment or CALL but fully
alleges that large number Of such full paid shares
were in soas way placed at the disposal or for
Pres,asns e The New York Cen,sAl hallway Com.
pany for the purpose Of securing bis influence
0sS9 s iss no ssa onS1
the lines q the sad railway that Others Ct SAID full paid
.hasss vsss ~ some way placed q the Disposal o. or for
ssss Noe ysrk Asd NV Haven Railway Company, for
the pspsss ~ procuring similar contract tor the SAID
Assehsrs& rnion Express Company over the lines Of
The s2ls n.msd railway, and thai a largo amount OF
ssla psd shares Was sratuitoasy distributed TO var
sac.s.a !, .ssss one psr,car a,'rosd director, .na
the psintn advised and believes, such disposition
aforesaid 81 The said shares was transportation
thereof BY tho defendants consuming the sams and
that the deencants CONSUMING liable u respond
20 the other said association for the stock
disposed OF Al tbs Same rate a. which this plaintiff and
other bona fd subscribers said compelled
70 pay for the same.
Ffia-rhxl after the formation or the said company
and the payment Of per cent upon the Of
subscribed for tho said defendants disposed of all
the money 10 subscribed for ia the most extravagau
njudcous and unwarranted manner; that The dsfend-
above named as officers OF he SAID company, have
sevcray voted 70 themselves salary at tho rate OF
$l2 per annum and that all the other disbursements
and payments by the said company have been a like
magnificent rate; that the defendants have any
economy with any regard TO the interest tho
Gates the interest Il this plaintiff and have made
lavish expenditures Of every possible Kind and that tho
said company has not sufficient property, II tho
sold, TO make return to the associates Of
the amounts paid by them upon their subscriptions
Sirth-That the time OF the formal OF the said
company there then and are now existing three
other Express companies, known AZ the American, the
Adams and the United States Express Companies all OF
which said companies were Of long standing and had
4 created a prosperous business, and tue lines
OF the said three companies extended paces to which
the said Merchants Union Express Company desired
extend It's lines and doing became necessary 10
/ over the railway that the said three
panies were then running over thai in order pro-
contracts upon the SAID lines OF railways the said
defendants only gratuously disposed OF toe full
paid stock az above mentioned but without knowing
whether the Merchants Union Express Company would
be . success and without knowing how much patronage
4 iuto Wi