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

before referred to, owned by the said Terre Haute
q Indianapolis Railroad Company. as aforesaid,
TO the said Henry S. Ives trustee, at and for
the price of $62 so per share, and the
said William NJ Ramsey. urged the
said board for the reasons given as
stated by him, and finally procured the adoption,
thereof by said old board of directors: that as
soon as said resolution was adopted, the said
William NJ Ramsey elected a director and.
took his seat upon the board as SUCH and i'm
mediately thereafter three other old members or
said board resigned. in turn, and Two or the
vac ancies created by such designations were
filed, respectively, By Christopher c. Waite,
and Henry s. Ives, two of the parties herein
before referred to. and the third by Christopher
Meyer; and defendant says that the new board
OF directors, thus constituted consisted OF the
following named parties: F. H. Short, William
M. Ramsey, Christopher G. Waite, Henry S.
Ives. Christopher Meyer, Josephus Collett. and
this defendant, the said Collett being at the
time absent and his resiena ton not procurable;
that to the board Of directors thus constituted
the defendant rendered his resignation as presi-
dent of the said Terre Haute indianapolis
Railroad Company. which was accepted, and
upon the motion OF the said William NJ Ram
sey, the said Henry S. Ives was then and there
Immediately elected president of said company,
nd then and there assumed the duties OF his
OH c e by presiding over the board during the
eNainder of its session.
Defendant says that on the same day, to wit,
June 4 1887, certificates of stock for the said
S,840 shares hereinbefore referred to were trans
ferred and issued to said Henry S. Ives, and
were then and there by him delivered to the
said F. II. Short. the said Short being then and
ant herein, and also, had been, just
previously. elected secretary and treas
urer of the said Terre Haute g. Indianapolis
Railroad Company by the newly organized board
OF directors hereinbefore set forth; and that
said Henry S Ives, trustee. then and there drew
draft payable to the order of the said Terre
Haute e Indianapolis Railroad Company for
said shares to-wit, the sum of 500, 800, upon
the banking house of Henry S. Ives & Company,
IN the city Of New York. and delivered the same
to either said Short, the assistant treasurer
of said TerIe Haute % indianapolis Railroad
Company, elected by said new board of directors.
And this defendant denies that any part of the
proceeds of the sale of the said g. $40 shares of
stock was ever paid to or received by him, either
directly or indirectly; and he AYERS that said
Ives never agreed to pay this defendant Is per
cent. of the amount of the sale Of such stock or
any other sum on account of the sale thereof.
This defendant further says that he is in
formed. and believes. and therefore charges the
fact to be- that said draft for 1862, 500 never
paid by the said Henry S. Ives & Company, or
by the complainant, or by any other person. in
whole or in part that in truth and fact the said
draft when presented at the clearinghouse OF
the said Henry S. Ives & Co., in the city of New
York, was, by direction of said f. Fl. Short,
treasurer, simply credited to the account of the
said Terre Haute & Indianapolis Railroad Com
pany, upon the books of said bank, and the pro-
ceeds thereof were never paid to such company
that shortly thereafter the said firm of Henry
S. Ives e. Co.. bankers. and the said Henry S.
Ives failed, and that no part of the price of said
stock has since been paid either by him or by
the complainant, or by any one else.
Ill
The defendant. further answering. says that
all the facts hereinbefore stated fully
known to the officers, directors and counsel of
said complainant, present at the times when the
same occurred, and that afterwards, to w.t. dur
ing the month of August. 1887 as defendant is
informed and believes, the same were in sub
stance stated and explained to Julius Dexter,
president of the complainant, who verifes
the bill of complaint herein; that on or about
the 18th day of November, 1887. the said Julius
Dexter. and about the same time the said Will
lam NJ. Ramsey, made application to this de-
PENDANT for an extension OF time upon the pay
ment of said note the said Dexter proposing to
pay a part thereof within ninety days after its
maturity, and the residue at certain intervals OF
time, upon the easiest terms that this defendant
would feel willing to grant; that at no time, I'M
til just before the fling of the bill herein. was it
suggested by said Dexter, or by any person or
persons whatever. that the said note and con-
tract hereinbefore set forth was subject to any
infrmity, or that the complainant. or anyone
else, had any right to demand such securities
without full payment of said note. or to defeat
the collection of any portion OF said note. This
defendant denies that he has ever threatened to
make q hasty or unjust sale OF sacrifice OF said
securities, pursuant to his powers Pledge
thereof otherwise; and the defenda Mt denies
that the amount due upon said note is only $780,
$780, in said bin of complaint alleged, and he
that the entire amount of said note is due
and unpaid, wit, the of $685. $50 with inter
est, and he denies that the complainant, or any
one on its behalf, has ever rendered him. or any
person authorized to receive the same on his be-
half, the amount due upon said note.
The defendant further says that after the
board of directors of said Terre Haute e. Indian
apolis Railroad Company was reorganZed, and
consisted of the persons hereinbefore named, and
after this defendant had resigned the Office of
presidents OF said company, and the said Henry
s. Ives had been elected president in his place.
Mr.. Christopher G. Waite, hereinbefore named,
who then yice-president and general man
ager of the complainant herein, elected
Y 10 ent and yna of a
Terre Haute q Indianapolis Railroad Company,
and continued to hold such position until the
latter part of August. 1887; that upon the 4th
day of June 1887, the control and management
of said Terre Hau.e q Indianapolis Railroad
Company, and also of said Terre Haute 81
Logansport railroad, was turned over to said
Ives, president and G. q. Waite. general man
ager, the representatives of the purchaser
purchasers of this defendants stock, and re-
about the 10Th day of August, 1887, at which
date the said Ives resigned president of said
Terre Haute & Indianapolis Railroad Company,
and this defendant was elected president in his
place; that during the time the said Terre Haute
g Indianapolis Railroad Company and the said
Terre Haute & Logansport railroad were under
the control and management of said Ives
and Waite the surplus of said Terre Haute u
Indianapolis Railroad Company existing the
4th day of June, 1887, was largely diminished,
its assets wasted and applied to other than cor
porate purposes, to the amount of more than
million and one nalf dollars, and it's debts
increased without benefit to the corporation to
the amount of five hundred thousand dollars.
and at the time the note hereinb before set forth I
fell due and also atthe time when this defendant
became president of said Terre Haute 81 Indi-
annapolis Railroad Company, as last before men,
toned, the value of the stock of the Terre Haute
& Indianapolis Railroad Company was much less
than it when the contract of June l, 1887,
hereinbefore set forth, was executed. so that the
stock now held by this defendant as collateral,
as above set forth, is. at most, barely adequate
to pay the debt for which,it is pledged
And this defendant denies all and all manner
of unlawful combination and copfederacy where
with he is by the said bill charged, without this,
that there is any other matter. cause or thing in
the said complainant said bill of complaint con-
tained material or necessary for this defendant
to make answer unto and not herein and hereby
we'll and sufficiently answered. confessed, trav-
ersed, and avoided denied, is true to the
knowledge or belief of this defendant. All which
matters and things this defendant is ready and
vii