Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-03-24
THAT WATERED SUIT.
Thomas Atterbury, Sr., Says it is
Nothing but a Case of Slander.
DEVELOPMENTS VERY SLOW AS YET
Interested Parties Apparently Keeping
Away From Reporters.
A FULL HISTORY OF THE TRANSACTION

There were no new developments IN the
contemplated equity suit against the MO
nongahela Water Company by ID. Sellers
Mckee, Henry Sproul, A. j. Lawrence, ..
c. Fisher, George o. Morgan, Harriet Nor
gan, James A. Chambers and Jeannette Z.
Mckee to make null and void the issue OF
$3.50, 900 worth of stock which was to have
been placed upon the market. Until the
service of the bill there seems to be good
deal of delicacy in talking about it.
An effort was made last night to ind
some of the interested parties. Mr.. ID.
Sellers Mckee was caught at the Union sta
tion, just as he was getting on board train
for Philadelphia. Mr.. Mckee said:
81 know nothing whatever about the con-
templated case, any more than 1 have seen
in the papers. am not in it in any way,
as yet, so far as know.
Mark Watson, the President of the COM
pany, was at his Office, and wouldn't talk;
and inquiry at his house last evening
brought the reply that he was in Ohio.
John II. Dalzell, director, was also out OF
the city. James S. Atterbury was in bed
shortly after supper, and objected to being
interviewed in his robe de mutt. George 7.
Oliver was not at home. B. F. Jones was
in New York, and the others were too mod
est to see reporters. In the afternoon Mr..
Thomas Atterbury, Sr., said:
THE ONLY STATEMENT.
Ihave not read or heard anything concern
ing the proceedings commenced, but know
all about the case. 1t is nothing more or less
than a scheme. James Chambers and Sellers
Mckee, who are at the head of it, are after
money, but they will not get cent. They have
been sending US notices that they would go
into the court if something was not done. and
we told them to 60 ahead. We are not ashamed
or afraid to tell the court or the public all
about the transaction with the Manufacturers.
Water Company. It was one of the best deals
ever made for our company. There are al
ways two sides to story and when we print
our side 1t will place the matter in diHerent
light. We have nothing to conceal, but would
prefer to wah until the case comes before
bers and Sellers Mckee will not make anything
out of this matter. The first thing they know
they will have q bill filed against them in the
shape of a suit for SANDER.
The defendants named in the coming bill
are NJ. W. Watson, B. F. Jones, John II.
Dalzell, Thomas B. Atterbury, j. S. After
bury, B. F. Jones, J. G.. Walter, Jacob
Henrici, Daniel Mckee, G. j. Schultz and
John Moorhead.
The history of the case, as contained in
the narrative of the proposed bill, goes back
to July, 1856, the date of the organization
of the Manufacturers Water Company.
This was corporation formed by George
T. Oliver and others who had disputed with
the Monongahela Water Company about
rates, and had determined to create COM
petitor. President Mark W. Watson, of
L. la1o al Hoho
of. the company, made an agreement on
March Is, 1886, with the manufacturing
company, by which that company's stock
| and franchises were to be transferred to the
Monongahela Company. The Monongahela
| Company, in consideration of this transfer,
was to pay 81, 500 cash for 800 shares of
| Monongahela Company stock, and in addi-
ton supply Oliver Bros. & Co. and II. B.
Scott 3 Co., in which the divers are in
terested, with water at certain rates for 20
years.
1 -. A GRAVE ALLEGATION.
This agreement, the bill charges, was not
consummated by President Watson on be-
halt of the Monongahela Water Company.
Instead, he fraudulently combined with
John h. Dalzell and J. S. Atterbury, two
of the stockholders, and B. f. Jones and
| Thomas B. Atterbury, two of the directors,
to take and hold for themselves the Manu-
facturers' Water Company's stock and fran
chises. In pursuance of this design, they
caused the property to be assigned to
Thomas B. Atterbury, and paid the 81 500
out of their own money and the 300 shares
out of their own stock, at that time valued
at $45 per share. They also claimed to own
the entire stock of the Manufacturers
Water Company, without, as the plaintiffs
believe, having paid any other considera-
tion therefore than that mentioned-$15,0 900
| in all.
Then, the bill will allege, with corrupt in
tent, they caused the directors, on August
80, 1888, to call a, meeting of stockholders to
vote oD an increase in the stock from $998, :
200 to 81, ,448, 200. The stockholders ap-
proved the increase on November 2 by a
vote of 25,4SS out of 39,928 shares. They
next had proposition approved to buy the
franchise of the Manufacturers Water
Company for $450, 900, payable in stock of
the Monongahela Company at paris, 900
shares at $25 each-and then issue the new
stock to the venders, retaining to them
selves 5000 shares and apportioning on the
| company's books the remaining 1900
among themselves and other stockholders.
TOO oNE-sIDED. THEY THINK.
The plaintiffs were not present at the
meeting on November 2. They have never
assented to the apportionment of any part
of the 1900 shares. They appealed to the
board of directors for redress, but the board,
on January 81, 1889, refused it, only one
member-John Moorhead-favoring them.
They hold altogether over $3.50 shares.
They ask the court to declare that the in
crease of capital stock was fictitious and
illegal; that the property of the Manu-
facturers' Company was purchased by M. W.
Watson in trust for the Monongahela
Water Company, and belongs to it. sub
ject only to the payment to NJ. w. Watson,
B. f. Jones, John H Dalzell, T..B. After
bury and j. s. Atterbury of 81, 500 and 300
shares of stock that the apportionment of
the increased stock is null and void
The plaintiffs petition for a reputation
of an increase of stock from $998, 200 to
$1,44S, 200. The court is asked to perpetu-
ally enjoip the company from paying any
dividends upon the $4,000 shares, issuing
certificates of this stock, or selling, trans.
ferring or assigning any portion of the 49,.
900 shares standing to their credit on the
| oor,popu'u h0olrc oD1 10 rive cuoh ftirfhoy