The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-01-03

amounting to Sill, l5O, this stock of being very
little value To cover the 1891. 500. sl11 $50 and
1926 500, Ives executed his note as trustee to
McKeen. for 1868, $50 at per cent, payable
Dec. 4. 1887, or earlier. at the option of Ives.
shares of the T. Fl. & l.. stock, and in default
of payment on or before Dec. 4, 1887, the stock
should revert TO McKeen. The complaint
authorized to- purchase any T. a q L.
stock he had no right to pledge the
IL, 100 shares of the L. II. & l., and consequent
ly the only amount due from the c., 81. &c d.
was the s226.50O on the remaining T. 81. 6 I.
stock This amount with interest, was offered
to MIR. McKeen. but he refused to accept it and
release the stock On this COMPLAINT the injunc-
ton above mentioned was granted
The following is Mr.. McKeen's answer
The defendant admits that on and prior to the
4th gay Of June, 1887, Henry S. Ives was one OF
the vice presidents of the plainant. and that
the Terre Haute & indianapolis Railroad Com
pany was then and there a corporation having q
capital stock of little less than 40, 600 shares
(being two hundred and thirty seven shares less
than said number) of the par value OF 500 each
but whether the board of directors of the
said Cincinnati Hamilton d Dayton Rail-
road Company took any action authorizing said
Henry s. Ives. as trustee for said company,
to purchase 10000 shares Of the stock
of the Terre Haute g indianapolis Rail-
road Company at price not exceeding 300 per
share, as alleged said bill, what. if any,
limitations there upon the authority OF
said Ives in making said purchase as to either
the price or ubject-matter thereof, or who his
principals were, IL any he had, in said trausac-
ton, or whose were in fact the funds used in
making said purchase, this defendant, at the
time he made the contract of sale hereinafter
set forth did not know and was not advised; nor
/ does he have any knowledge on said subjects
cept by contradictory rurnors. reports and hear
say. and he therefore neither admits nor denies
the allegations of the bill to said matters, but
asks that the com plainant be required to make
strict proof in the premises. Defendants says
that one. at any time during said negotiations.
informed him as to who were the real principals
in the transaction.
And this defendant denies that either in con-
nection with said Ives or otherwise he ever pre-
tended to complainant that all of the stock of
said Terre Haute & Indianapolis Railway
Company mentioned in said bill of complaint
had been purchased by said Ives at 800 per
share. and he denies that he ever gave COM
plainanr any reason for believing; or ever
made any representations, directly or indirectly,
to complainant other or different from those In
the contract herein set forth.
This defendant denies that he over made
contract as alleged and set forth in said bill of
complaint with the said Henry S. Ives, and
only contract ever made between the
said Henry S. Ives trustee, otherwise. and
this defendant is set forth in writing signed
by the said Henry S. Ives. trustee, and by this
defendant, and the same fully sets forth the
terms of the contract between said parties and
and is in the words and figures following,
to-wit:
This agreement made and entered into this LIST day
Of June A: D., 1887, by and between William R.
and Henry s. Ives trustee witnesseth That the said
Mckeen hereby agrees to SELL assign and transfer
to said Ives 100 shares of the capital stock CT the
Terre Haute g. Indianapolis Railroad Company and
46 shares Of the capital stock of the Terre Haute
Of the State of indiana and to deliver the certificates
for such stock to said Ives as follows o-wt:
Certificates for s56e shares of said T.. II. s. I.
stock and for 4.446 shares of said T. H. s. L. stock
on June 4, 1887, and the remainder of said t. a.. s.
days from this date
In consideration of the premises the said Ives has
this day paid to said McKeen $3.50, 600 90 and here
by agrees to pay to him June H. 1887, upon deliv
of the certificates of stock aforesaid the further
of $685., 10000 and also at the time last afore
said the said Ives will execute and deliver TO said
Mckeen good AID sufficient note for S669, 15O0 O,
bearing per cent interest from date and providing
for the sale and purchase of the herein
after mentioned in the form and upon the terms
usually adopted in of notes secured by
collateral security The said Ives further that
above described he win on said june l. 1887 assign
and transfer said McKeen certificates for g. $50
Company and 4.446 shares Of the It. II. & L. Rail-
road Company, and will also from time to time like
lateral any Or ali q the certificates for the 1000
liver to him within thirty days from this date here
It is agreed that if said McKeen does not deliver any
all of said certificates for $500 shares within
thirty days from this date aforesaid then the said
500 for each and every share of said r H & L stock
which he may fail to deliver within said thirty days
Said Ives shall neither buy directly nor indirectly
nor offer buy Of rs p stock from any other
PRED. '-'0 '',- w r. MEKEEN
HENRY s. IVES, Trustee.
And this defendant AYERS that said contract
city of Terre Haute. in the Office of this defend
ant, and in the presence, not only OF said Henry
s. Ives and of this defendant but also
in the presence of the counsel for the said
Henry s. Ives and the Cincinnati, Hamilton s.
Dayton Railroad Company, complainant herein,
to-wit, William NJ. Ramsey, and in the presence
of the vice-presdent and gene manager of the
said Cincinnati, Hamilton 81 Dayton Railroad
Company, Christopher c. Waite, and in the
presence of f. II. Short, one of the directors
and secretary and assistant treasurer of the
said Cincinnati, Hamilton & Dayton Railroad
Company, and also in the presence of one Rock
well, who was general passenger agent of the
complainant, and also in the presence Of John
G. Williams. counsel for this defendant.
And this defendant AYERS that the first draft
OF said contract vas Ia part reduced to writing
by the said John @. Williams and was then and
there submitted to the said William NJ. Ramsey,
who not only read the same but with his own
hand wrote an additional clause thereto, and
having carefully considered and examined the
said contract, caused the same to be read aloud
in the presence and hearing of the said several
copy thereof made and delivered the said
Henry s. Ives, and this defendant retained the
original Of said contract. which he now has in his
possession, in part In the handwriting of the
said Ramsey, as aforesaid
And defendant further says that at the time
of the execution of said agreement he not
the owner of IL, LOO shares OF the stock of the
said TerEe Hauts 81 Indianapolis Railroad Com
pany was weliknown to said Ives and to the
other persons present, but that he was 60 pro-
cure a sufficient number of shares with those
then held by him to make said number of II. leo
within thirty days thereafter, under the penal
ties named in said contract and that the stipu-
lation in said contract that said Ives would not
attempt to buy any of said Terre Haute e. In
dianapolis Company's stock was inserted to pro-
tect this defendant against the competition of
the man to whom he had agreed to sell the |
stock and in pursuance of said agreement this
defendant did, by purchance. procure the add- |
tional shares required, within the time pre- |
scribed by said contract, and execution of |
said contract transferred to the said Henry S. |
Ives. trustee. IL. 160 shares of the ead stock of
the Terre Haute & Indianapolis Railroad Com |
pany hereinafter set forth.
That said Henry S. Ives, trustes, in part exc |
cution of said contract of June l. 1887, then and |
there delivered to this defendant draft for |