Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1882-10-17
The Troubles Of a Chicago
Newspape, and Its Stock
Holders.
Sharp Practice on the Part Of Chi.
caso Saloon Ksspsrs.
Fifty-Nine Miles an Hour from
Burlington to Chicago.
N. star Reuter-. After Their pr..seu.o,.
A Nswsp.per Ia rrouble.

eSSSO8SB04
Chicago. October 1.-THE bill, fled
by W. Scott Smith. Of Washington,
against the Chicago Herald Co., for :
receiver. makes some startling allega-
tions and sets forth that the capital
stock Of the company il Sl5o.0oO and he
owns ten shares Of paid up stock Of one
hundred dollars each; $50 shares are
outstanding. The oompanyis personal
property is worth $4,000. and it's good
~ill. etc.; $4,000 il the business is hon.
estly managed. A. F. Hatch is presi.
dent; jas. w. Scott, secretary and treas
urer; +. w. Rice. o. F. Alder and w. D.
Eaton, directors, but Eaton has long
since ceased to act. In July 's2, Hatch.
scott & Rice, being q majority of the di.
reetors, assessed the outstanding stock
dfty per cent. each of them owning
twenty shares of the stock, and
they conspired to get the rest Of the
stock BY this means. claiming that this
assessment was necessary to enable the
corporation to carry on it's business, and
that they could not otherwise pay its
debts. These statements were false and
put forward to make the stock holders
relinquish their stock. The Herald had
been an administration paper and con-
sequently got large amount of govern.
ment pstronage$ $50. 600 worth at least, and
it patronage was almost wholly among
the supporters of the administration and
its stock was largely owned by United
States officials, and they alone centribu-
ted money to its support. Hatch. Scott
and Rice began to attack the administra.
ton to further their scheme and compel
these officials to give up their stock.
knowing if they held it they would have
the good will of the government. Con.
sequently the papers patronage fell
of and stock is greatly
deprecated. -Four hundred shares have
been surrendered to the conspirators
sho now have 700 shares all secured al
grossly inadequate rates, and they have
tried to collect the fifty per cent assess
ment Il, I'M the stockholders who refused
to give their stock to Hatch. The bill
states that on the 18th day of August
mortgages were executed for $4,000 to
q. Walsh and $4,000 to Hatch and that
this Indebtedness is fictitious and was
contracted to further depreciate The
value of the stock and to compel the sur.
rendering Of these mortgages
which were never recorded. Scott told
complainant that unless he would accept
ten cents on the dollar Tor stock the
mortgages would be foreclosed and stock
rendered valueless. The business of the
corporation has been confidentially turn.
ed over to Scott who has been reckless
and extravagant, and claims that the
corporation has expended sls2, 600 since
May. 1881, Of which $4,000 has been paid
for editorial work and correspondence.
In reality. not over half this amount
has been expended. Scott also Gays
that since the 4th Of last month, the
company spent 5000 more than it's IN.
come. The bill prays that the owners Of
these mortgages be restrained from fore.
closing. and that the court appoint q
receiver to take charge of property 70
prevent waste, and that account be taken
OF the amount, 90 that the officers Of the
company may know it, and that they
may pay Whatever they have wrongfully
used or appropriated of its money.