The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-01-17
The interest due on the bonds. which were issued
for the purpose Of raising money to build the
water works, amounts to $40, 900.
TROUBLE BETWEEN PARTNERS.
The Affairs Of Emley ( Co. Laid Before the
Court for Adjustment.

For several days there have been differences
among the directors of the Emley 6 Co. corpora
ton, which manufactures railway frogs, cross
ings and switch supplies. 1t was understood
that they were of such gravity that
they could be settled only in court
but which party would institute proceedings did
not appear until late yesterday afternoon. At
that time Samuel c. and Andrew B. Emley,
Ephron G. Dawes, Benjamin F. McCulloch and
the Emley & Company corporation came before
Judge Taylor with a complaint for restraining
order against VIM. G. WATSON Thos. E. Chandler
Harry s. Drew. Henry H. McGaffey, Daniel F.
Whitcomb and Joseph W Sherwood They. al
put $4,000 cash into the firm, which Emley &
Company accepted, but of this amount he only
paid So, 500 A few months after this WATSON
asked to be relieved of his partnership interest,
a note for So. 500.
In October, 1884, they state that WATSON came
again and represented that he had railroad con-
nections and influence that would enable him to
turn great deal of work into the factory;
enough, in fact, to keep it supplied all the time.
He proposed that q stock company should be
formed, and in that event he would surrender to
the company the note for So 500 he held against
the old firm. WATSON, it is alleged, proposed
to loan the new company money to carry on
ceived one-half the stock. Upon these terms
compliments say the company was formed with
the agreement that Samuel e. and Andrew B.
Emley were to control the corporation and the
active management OF the concern They, the
Emleys, for their services were to receive 1875
monthly, to be deducted from profits before divi-
dends were declared.
The company. upon this arrangement. began
business in November 1884, with capital stock
of $50 600, $50, 500 of the amount being paid up.
Emley e. Co. had one half of $780, 600 paid up
stock, and WATSON the other half. the 500. 600
balance in stock was held in reserve Of
this reserve Ephron c. Dawes received
$4,000 worth in exchange for machinery he
put into the works WATSON, they claim. took
81 600 OF the reserve stock and gave 81, 600 each
to four of the defendants. This was done, they
charge, without the company receiving any con-
sideration for the stock. The $40, 600 represent
divided between Finley & Co. and WATSON, each
taking half to hold in trust for the corpora
ton. After him they claim WATSON got possess
ion of the half held by Smiley & Company:
They believe he now holds it, but if it has been
transferred to other parties 1t was done without
consideration, and only to give colorado pos
session to some one acting in concert with him.
Complainants charge that WATSON and defend
ants are trying to get possession OF the property
Of the company to the detriment of their inter
to get possession, and will unless restrained by
court. The prayer of the complaint is
for perpetual Injunction or final hear
ing restraining WATSON and the defendants from
interfering with the rights of compliments and
from transferring any stock held by them. It
ia also asked that the stock held by WATSON. as
well as all other stock outstanding. except what
is paid up. be cancelled. They charge WATSON
of failing to bring the work to the factory he
promised.
Mr.. WATSON has statement to make to the
public at present. He claims good defense.
He is in possession, by advice of his attorneys.