, 1874-02-07
THE GREAT WESTERN.
Supplemental Petition Filed by
the, Company.

Mossrs. Reeve, Gage, Hilton, Snow, and
Others Aro Requested to
Pay 0ycr.
THE GREAT WESTERN TELEoNArn COMPANY,
supplemental petition WAS filed Yesterday in
tho Circuit Court by tho Great Western Tolo-
graph Company against solah Rooyo, Dayid 4.
dRgo, Josiah Snow, John Clark Hilton, tho Com
| mercial National Bank of Chicago, George L.
Otis, Edward Mcdonald, Rodney s. Whitconb,
William D. snow, anl Charles D. Doalt. The
bill first sofa up tho facts attending the COM
mopcement Of tho suit by Jeremiuh Terwilliget
aus, which was begun Nov. 10, 1860. BY tho
oortttoato Of incorporation, tho whole n,anago.
mont mud control Of tho corporation was
EXCLUSION Of tho Bto kholdors, aud tlo
articles of association woro never exhibited to
tho Stockholders, 80 tint thoy could know OF tLo
designs ct tho Directors. No meeting OF tho
SNOW, aud 9age associated themselves together
into Doard, Gage being President.
Sometime nfter, Roovo resigned, and an
agreement was thon mato with hm by which
Gage and Snow assigned tho capitul. stock Of
build tho lines Of tho Company for, $500 nor
milo, md have tho right to sell tho stock to puy
himself. This was all dono in bad faith, lsooye
giving no security for the pcrformauco OF tho
tho aubHcribors. Terw1Iligor Subscribed for loo
shares at s25 oaoh, and paid 5000 thereon. He
also tonderod 1900 moro, making 40 por cont Of
tho full 9amotlnt, and demanded paid-up stock,
as M tho Company lad advertised to give, bnt
40 per cent had not boon called for, and noel
not bo paid until then.
ooarst TSrwtgaf hon brought suit ashng that tho
1r
tho Company bo onioned from pnying
on1oined from selling, any more stock, aud
oeeyef af hs aRpontGa ID a DECREE vas made in
appealed, and IN septomber, 1879, tho Supreme
Court rendered q decision declaring the contract
With Kceve a. fraud OH tho Stockholders, and
therefore void, md directed that tho caso be-
Of Directors was also ordered. An acco,.l,t was
to DO taken Of tho amount duo Reeve, The CIR.
cult Court accordingly outered fit,nl decree. in
| accordance with the decision Of tho Supreme
Court.
meettng OF the actual bona f1do Stockholders
waB held Jun. rs, 1873, ut Which, besides abolia-
ishng the old by-lawH and framing now, IN olec-
tion o. Directors was held, when Joshua Stark
President; A. II. Diisu, General suporintondent;
e. g. d: Bond, Secretary; and ]a1oryin Tabor,
TroaAuror. The Company, now "boing permit.
ted to speak aud act as tho voice Of it's actual
atook,;odera b5ings its supplemental bill prop
or, Claiming Oil tho rights given it by tho Torwi-
lgor decree. It also states that the Board, after
its election, attempted to make peacoabie set-
tlement with Reeve, and procured IN order Of
roieronco to tho Master to ascertain tho amount
paid for tho construction of, lines, lhe
ssGnmnennatioa ssnap lcs duo for Roevcs' timo and
amount Reeve bud rccoivnd, and on which side
the balance lay. This reference is still pending
! and undetermined, the Company having been
enjoi,cd until within n few days past from pro-
oceding therein. 1t Is thought that the u1nounta
collected by Reeve exceed the amount due him
by at least $150,o00.
Roeyo, since tho decision of tho Tcrwl}I;ccr
oaBe, tas continued tol curry out the fraudulent
contract, and made fraudulent representations
TOR securing subscriptions. Complainant insists
that it was Keovos duty to stop work undor tho
Gai, contIae, during tho pondency Of lho suit and
more telegraph lines thereunder. .Koverthclcss,
II is alleged, Gage aaHsted Roeyo il
hls noiarlous schoxnea down to tho
meeting o. tao Boara u January 1sa directed
fered Neoye to issue stock, and uso tho proceeds
for himself. Oyor 5000 was 30 used in en-
ploying counsel ~ tho Tervilliger cnse.
SNOW, IN April l87l mado pretended sott1o-
for bis Hharo, under pretended payment to a
third person. $17, 600, and having over 51B 600 Of
debts. Josiah Snow is charged With being q
partner uudor tho names Of Albert or W. D.
Commercial National Bunk, of Chicago, was nut
in Shows place aa Treasurer but ho neither kopt
any books nor took any ofhcial action, except
Under tho immediate supervision Of David i.
0tB signed certificates Of stock, mud also seYorai
promiBBory notes, made to various pnrtics.
1t il charged TINT Otis lad no power to mako
any notes, or sign tho Company's na1no, it being
President. Those notoa wcre discounted at tic
Commercial National Bank aftor guarantee by
Gago ind lsooye Tho bank, II is alleged, was
not purchaser In good faith aud without
knowledge. Some Of tie notoH woro renewed,
and threo OF tho renewal notes Ind powers of at.
torney attached, given utterly without authority.
Judgments wore enterod up on thoae last Dec,
u, 1s72. Ihree notes for 50, ,G09.1 .10 onoh, vera
given to J. O. Hilton after Gage know or tie
fonso. 'll It ia Is p3 oharpso3 That any A,lton aa,
is not tho rcal owner OF the notes. ind holds
thom in secret trust for Gage aud Rcoyo. Hilton
subsequently entered up Judgment, and issued
ulao obslincl by default il, milwaukee,.
Soon after tho election Of tue new Board, mud
before i could take any stops to AVOID tho judy
and Ind the Company adjudioatod. THO tlooi--
Hson was, however, on tho 31at of Janunry, re-
varsod by TUG Circuit Court, and loayo given the
company todafeni its clnims in tho State courts.
tAo1 1o++"A" "aA NAAtlNLAD, HuA IOhll uGleHI.
ants, layo, aa sub-contractors, built quito
lallnbcr Of nilos Of limo for Reeve, md claim a
largo amount still duo them from the Compu,,y,
aud . . lion gu tho limos constructed. Tho poti.
ycmbor, 1872, Is efroctual as regards lilo prinoi-
pal matters ut interest, yot aa to tho aots ct
Reeve, Gage, Oils, Snow, and tho sub-contraol-
ors done while tho suit was In progroBs or uudo-
toflnined In tho Supreme Court, aud aftor ta DO
cision, tho decree IL insufficient; and for this
purpose this supplemental bill ia lllod, -.
Complainants therefore ask tllat tho unnuthor-
ICED and fraudulent Judgments may be set aside;
co!ca; that tho lines built by tho aul-contrnct-
ors Mny bo left FREQ to complainant from ull
lions; that Gage and his associates bo hold to d
strict account of their doings aud unlawful OK
pendlturos and that all partios may DO decrood
to surrender atl stock and notes unlawfully hed
by thom. An Injunction ID also asked ncniuat