Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1884-03-27

An important law case has been
placed IN the hands of the law firm of |
Gardner & Gaynor during the past
week, for the prosecution of Mr. Geo. |
Hiles and others, in case the charges
made against them are found to be
true. In the complaint and injunc-
tional papers which were served upon
them Monday, it is charged and
avered among other things that the
entire cost of the Wisconsin, Pitts
vile & Superior railroad, has not been
over $3.50, 900, and that the total
amount donated has been $37, 900 ;;
that more has been promised on con-
tracts made by individuals doing
business over the road, which amounts
to several thousand dollars more, and
that the town of Wood subscribed for
$4,000 worth of stock that at the
regular meeting of the legal board of
directors, stock was ordered issued in
the sum of $50, 500 to be paid for at
its par value, and that said George
Hiles, james Hiles, II. Q. Atkins and
W. G. Collins have not paid for their
stock in any manner known TO the
Plaintiffs in the action, having also
denied Plaintiffs any inspection of
the company books. 1t is also further
charged that pretended meeting of
the above named stockholders was
held in October 1883, at which the
members of the board present at that
meeting ordered that $500, 900 of the
bonds of said railroad company be
issued and mortgage upon said road,
its rolling stock and franchises to
secure the payments of said bonds to
be executed to the defendant Stephen
Clement as trustee for the holders of
said bonds That the said Hiles has
already disposed of 100000 of said
bonds to the said Clement, president
Of the North Chicago Rolling Mills as
collateral security for $4,000 due
said company for rails and iron for the
20 miles of road already built
That Hiles also sold $4,000 of said
bonds to the G.. NJ. & ST. Paul R'y
Go. and more to other parties I'M
known to plaintiffs That no authority
for the issue of any stock, except as
above stated was ever given by said
company and that Geo. Hiles as presi-
dent and G. 0. Baker as secretary
have no right whatever to issue bonds
for said company and that their action
thus far has been and is fraudulent.
The plaintiffs charge Mr.. Hiles and
q. .. Baker with paying out moneys
without the treasurer's warrant or
proper vouchers and that their intent
is to cheat and defraud said company
and stockholders. The charges are
too numerous to mention in detail
The charge is also made that said
Hiles has reported to the Secretary of
State the actual cost of the road to
be S183, 907 90, which is charged by
the plaintiffs to be 100000 in excess
of such cost, and reports that the
total interest bearing Indebtedness is
$183, 907.9S being more shan $130,
600 in excess Of the actual indebted
ness. They charge also that Geo.
Hiles is violating his duties as
president in not keeping proper
accounts of the receipts and disburse-
mentS of said road ; that his son Frank
is allowed to run passenger train and
does not account properly for moneys
received and that said Hiles connives
at the same and converts the moneys
so received to his own use. Geo.
Hiles is also charged with using the
cars and road for his private business
and not paying or crediting the COM
pany for the use of said road. That
Geo. Hiles and q. 0. Baker have
usurped the control of the books,
papers and records and all the money
and property of said railroad COM
pany and refused and still refuse
plaintiff Ward an inspection of the
books, paper and records. That
Lawrence Ward is treasurer of said
company but that said Hiles and G.
0. Baker have not turned over
any money bonds or other property
belonging in the custody of said treas
urer, and still refuse to do so. A
prayer to the circuit court asking for
relief and judgment has been granted
by Judge Webb restraining and en-
joining the said defendants from
further proceedings until after proper
hearing in court.