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

Judge Woods Refuses to Interfere with the
Annual Election.
Yesterday being the day for the annual elec-
tion of directors for the Terre Haute & Indian
apolis Railroad Company brought new phases
in the recent Vandalia deal The directors of
the C., H & D., apprehending that the Il, 100
shares Of T. Fl. & l. stock held by W. r. Me-
Keen security from Ives would be voted
without regard to their claims filed at 10 o'clock
Saturday night, in the United States Circuit
Court, bill in equity against the Terre Haute Sc
Indianapolis Railroad Company Henry S. Ives
and w. e. McKeen. The complainant stated
that OF the 39,763 shares of the T. III. s. l. it
owns 10000. purchased by Henry s. Ives
out Of the funds of the company and transferred
to him trustee. OF the 10000 shares, IL l6O
still remain the books of the company in the
name of n. S. Ives, trustee. and the certificates
for the same are held by w. r. McKeen as Sc
curity for a sum due him from IVES trustee.
The amount of the balance due is in dispute.
The complainant had offered to pay McKeen the
amount due him for which he held the certifi-
Gates of stock collateral, but he had declined
to accept payment deliver the certif-
cates Ives 10 longer officer
or stakeholder in the plaintiffs company,
and the directors had authorized Julius
Dexter to vote said stock in the T. ii & l. be-
quested FL 5. Ives to transfer said stock to
Julius Dexter as trustee or 70 execute to him
such power of attorney as would enable him to
represent the plaintiff owner of said stock.
But Ives refused to comply with their request,
and the plaintiff was further informed, and be-
leved, that McKeen, either as Pledge of the
stock or by power of attorney uulawfully exc
cutsd by Ives to him, proposed to vote the
stock and obtain control of the corporation and
its board of directors. Without the knowledge
authority of the plaintiff, Ives has caused the
residue of the 20, 900 shares-viz.. s. 1910 be
transferred into the names of sundry persons
unknown to the plaintiff.
The complainant prays that Ives and McKeen
may be enjoned from voting upon any of said
20, 900 shares. and that the Terre Hauts e. Indi-
annapolis Railroad Company be required to accept
the vote cast therein by said Julius Dexter
that the company be enioined from eecting
officers until the examination of the rights OF
the parties with respect to said stock, or until
the further order of the court.
After some consideration of the matter, Judge
Woods, yesterday morning, about o'clock,
issued the following order, which was tele-
graphed to Terre Haute:
Pending the hearing of motion for injunction
against the defendants prayed for in the BILL it is
ordered by the court that the annual election of the
at 10 O'Clock, A. M shall commence until o'clock
p. NJ. this day
BY this time the attorneys representing both
parties to the case had assembled before Judge
Woods General Harrison and John M. Butler
for the defendant, Mr. McKeen, and G.. w. Fair
banks and General Solicitor Ramsey. of the c.,
gument of the plaintiff was, briefly, that the
Pledge of stock has the right to vote it. The
attorneys for the defense held that the pledgee.
ME- Mcheen. might vote the stock where its
value does not exceed the debt for which it is
security, and where circumstances otherwise are
similar to those involved in this case. Judge
WOODS, In an oral review of the arguments,
found that the legal title to the stock pledged
as security. is in Ives. trustee. McKeen is
right to vote the stock is in the pledper It an
pears that the debt of the plaintiff is overdue,
bot meantime an Injunction exists preventing the
defendant from acquiring legal rights. Had the de-
fendsnt's showing been made to this effect at
the time, injunction would not have been
granted. On the whole. the court does not feel
justified in interfering with the election. and
the temporary restraining order was therefore
dissolved.
At 1920 r. NJ. the court issued the following
order; Now, at 1920 P. NJ, after hearing, the
foregoing order is revoked, and the application
Of the compliments is refused
Mr.. Mckeen's Answer.
In the course of tins arguments before Judge
Woods the attorneys for DIR. McKeen brought
forth the latter's long-eKpected answer to the
complaint filed by the c., H. s. D. directors, a
few weeks ago, upon which an injunction was
issued by the United States Court. restraining
Mr.. McKeen from selling any part of the IL, l6O
shares of the T. II. & l. stock pledged as collat-
eral by Ives. The complaint set forth that the
c., II. 81 ID. directors authorized Ives. as
trustee. on June 4, 1887. to purchase
20, 600 shares of the T. Ell. g. l. stock,
the par value OF which was given at $50 per
share. and for any OF which Ives was to paw not
over 500 per share. Ives purchased IL, I6O
shares of T., II. e. /. stock at 800, amounting
20 81, 116 000 He paid on account 1889, 500,
leaving balance Of 1926 500 still due. Ives
purchased at the same time s, $40 shares OF T.,
II. 81 I. stock at $62 so per share, amounting to