New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-06-29

and reasonable tariff OF rates the daily cash receipts
would not only the daily expenses but furnish sur
plns for dividends and that al the Of the the
said Prospectus. reason was known why the sald de
pany would enabled to fix fair and remuneratye
tariff for freight and the said Company expected 80 10
Business from Stockholders and others interested
in the Of the Company ana those assurances nave
been more than met and fulfilled and the business OF the
said Company has been largely N excess OF that whch
they had anticipated; and 1t was the Deet OF te detenu
would be required to put tho business In working ORDER
pese: and Il was then believed that tho receipts would
thereafter maintain and extend IT, and but Tor the causes
hereinafter mentioned such BELIEF would not nave peen
And these defendants further answering say that they
have no knowledge information sufficient to form be-
lief that the said plaintiff relying on the statements con-
tanned the said Prospectus or relying Oh the supposed
fifty shares OF the stock OF said Merchants Union E1
press Company but they admit that he dd subscribe Tor
That the capital stock OF the said Company was by the
SAID Article Of no Of s each with liberty
to increase the same by vote OF threefourtns OF inc
Trustees at any regular annual meeting but after large
amount OF the had been subscribed for. and while
subscriptions were being made thereto the Executive
Committee by vote of threefouTths OF the members
thereof did increase the said capital stock 70 me amount
with the approval Of threefourths OF the Board OF
Trustees
And these defendants further answering say that the
said articles association 10 which the said PLAINTIFF by
his signature thereto became party contained tho fol
"Tie stockholders Of the Company shall not be liable
or upon any contracts made with by it, to an amount
exceeding the amount uspa upon stock respectively held
by them, and further amount ual TO the amount OF the
stock so held by them respectively"
And the said Company became and was organized ~
the said written articles OF association as Joint stock
Association and the members thereof and shareholders
therein subject to all the liabilities imposed by
law upon OF Ont stock associations thus organ
led modified only by the provision aforesaid 30 far as
the snme has been or may bo incorporated into contrc
made the said Company by Its officers or agents. ana
whether the said Association did thereby become com
partnership In which each OF the shareholders In
hp
the said shareholders severay personally liable for
the said Company after execution against the
President thereof in his representative capacity shall have
been returned unsased these defendants are not add
vised
And theso defendants further answering. say that the
said defendant John Knapp, was and Is member OF
the Executive Committee addition to the individuals
named such In the complaint That Dy one OF the art
Giles OF tho said articles OF ASSOCIATION tne sore MANAGE
ment OF the business stock funds property aud eOnceGns
OF tho said Company deyoyed upon and intrused
10 the Executive Committee, who have authority 10 APP
point and remove ut vi" an SCENTS se,Nants s.,,Oi u,
and employees whatever necessary 10 the conduct or
the business and have power 10 mike pynWs LOT une
government OF the Company lts officers ana agents no.
inconsistent with law and with these articles, WIN hu
tborty call in and demand from the STOCKHOLDERS ana
stock ubscrbers respectively all such sums Of money by
them subso bed for stock at such times ana IN sch pay
monts or insallments as such COMMITTEE shail uco"
AID these defendants. further answering, say, that
assessments aud calls have been made Dy the sad del,
ants upon the stock subscribed for at different times ana
amounts amounting Ia the aggregate mp 10 tue time OF
the commencement Of this action to tho sum OF - per
And that the plaintiff has paid upon his stock at ar
fcrcnt times the gate amount up 10 the time OF the
commencement OF this action. the sum or - per cont
which said payments mace at or about the time the
Tnat at the time She said plaintiff subscribed for the
stock of the said Company he paper or agree
and that subsequently certhoaio was Issued 10 MN,
copy Of which in blank IL hcreunto annexed. marked
~: but whether the said plaintiff stu retains and owns
the said certificate, and has the te IN Ms possession the
| sid defendants ignorant and uniformed
Nnd thee, defendants. further answering say that the
ps frum whom said plaintiff alleges that no puf-
90 I'D loo share, 81 stock did become subscriber in the
sine form aud by Ike agreement for To- shafcs OF said
Stock and did ray per thereon and did receive
siock in The ne form ~ that delivered and issued to
the said plaintiff; but weidcr The said person 50 a. aioTe
said mentioned has ~ any TINE s0d hd ASsShed 70 tne
aid pauil tho ad stuc aud cerinrateA tho said de-
PENDANT. have knowledge information sufficient to
form belief and there no transfer OF sid stock on tho
| book. ~ the aid company, 60 the said plaintiff
And these def,ndauts, further answering, deny that
49,, nm her AT thc subscribers to said stock. when calls
wcrp made upon them beyond tie r tW per cent spegi
ned Ia said prospectus. bccamr dissatisfied therrWIth'
aud refused to pay any further sums upon hsIt suscrP
tons: the contrary but ely small portion
Of tho calls made upon the said stock hithero' remains ia
| arrcar- and unpaid.
And defendants deny that the Increase OF tho capital
thereof made Ia Procuro further funds for nc bust
nes .; ~ a SMgg a:r the ad slscoo0 Of stock
had been subcrbci fcr and before tlg cginleh
IN, ,,x WHO tired 10 become interested In the Com
pany 10 sb,c bc therefor, which action was he' ahn
been ine approved and tie said increase has been rt-
nod and auy eel by three ourths Of the Trustees oi tue
Company that the said Increased capital STOCK was hos
sod or dposcd OF by The said defendants tn any other
WAY than A they received subscriptions therefor a. they
aid Tor tho or nal capital. and no distinction vas ad
at any time. FOR any purpo between e oiis,n AMI
the Increased capital and the defendants jointly ana
seyeray deny. and each for himself denies each a'n
every allegation contained IN INC iouaHH nm
| OF the said complaint and states and AYERS Una,
each and every part Thereof Is dsny
that at any time for any purpose any sto,k haS
as in paid stock or purporting face to be fgll paid
stock aud liable to future assesmentsi on the con
tray they aver that AL the stock thht 9s heen .uuu
or Tor which certificates have been gwen has been sned
In the forn and all subject 10 future ASs,ssle
and none has been issued upon which any ALLOWANCE or
credit has been made given beyond We amount when
has been actually paid by the subscriber therefor or hYIr
thereof that upon Of the said stock when mas D
issued no more IMAM 20 VIZ ~ % antop aud every part
of the said stock liable assessment TO the i
amount beyond the amount paid thereon ana upon ne
hIcrs thereof arc liable pay Tor the fun amount
which has not been PAID and they deny lat any stvR
ms beer Issued promised directly or indirectly by thom
ar y the said Company, or by any OF It's officers or hycht
/ M grntntcs Dean Richmond r. G. scranton. DohEow
doccas d. any other porsoh or persons TOY af p p
or under any pretense prtcNt Whatever ana tney
aver upon their belief, that no information OF inc mat
tiers stated In the fourth ParaSrhpn oi sau ~ W. @
could have communicated TO the paintih OF any
person from any source WORTHY OF erru ,eo, arr
prsod the allegation ON this subject So,inoI I'm IN sa
complaint and their surprise Is increased weH ty con
| having received stock grututously are now dead ana
eaI' s md attendants further answering deny that
rho defendants disposed of all OF the money pad
i'm upon subscriptions for stock 10 nm extravagant pG
cons or unwoned on the contrary Thereof they
aver and that the money ana tuhd OF the si I'm
source has expended aud laid out lndlflosy anu
economically by the said defendants ahs uucI teis
reion i'm the purchase and acquisition OF the necessary
property ofcos buildings horses, Wngohs' halhess'
s,f. stationery, and other equipments anu III huVl
tsne ,nd lng other things necessary and ndspehSnDe
10 the proper prosecution and carry ing on Oh inc
for which the said Company was organized except so Ir
a. they have the funds and moneys OF the sam tompay
ain on hand uncx pended; and that all OF tue sld pur
hc c have been made at reasonable and proper rates,
been made by any othcr person orrul poIatloh'
And the defendants, further answering say tnas az
| tha Iruaf uff ",