Telegram-herald., 1889-08-17
BROKEN OUT AFRESH
The Quarrel Between 5. B Tlobets
ana the Cable Railway.
4 RESTRAINING ORDER ISSUED
Hr- fiebets Claims That the COMPANY -
IEylaS 20 Beat nlm ouf OF one
laird 81 >f5.Ooo- Ihe Financial
History OF the Company.

samuel + Iibbets yesterday Med a
b.l in the ereab court ln chaaeely
against the Continental Caue and
Street Railway CONSTRUCTION company,
William 5. Crosby, OF 1nloaso, Horace
il. Bfeea 81 Minneapolis. tle Valley
Clty Gable aad street Railway the
Fourth National Bank so GRAND
Rapids alt the Union National Bank
oi Ch.ca-o. ca
Thehl sets forth that rae cable ooin-
pany, ia June, lsss, entered lotO a con-
tract with the complainant i0r the cOn-
strOction OF the road 10y the latter, who
WAS also - furn.- All material, power
house, etc, Tor b.ti the cable ana horse
,2l lines. Asaconsllgrat '0l complainant
Iibbets wa, 10 receive - per cent. ot
the stock OF the railway company and
bonds OF the same Il the amount Ot
s250, 0,000, payable Ola monthly estimates.
After entering into the contract COM
piaiuant associated with him and or
ganlzed the Continental Cable and
Street Railway Construction Company,
20 whom complainant assigned las
contract. The three took equal shares
u the construction company, Breed
being elected president, the complain
ant vice president, and Crosby secretary
and treasurer. Each stOcknOlder paid
IN 375 per cent. of the face value OF
his stock, complainant paying $500 IN
cash. and obtained credit Of
$4,000 Tor material, Il being agreed
in consideration OF his assigning the
contract that tins should be considered
a payment in full OF his assessment.
The construction company completed
the road and turned it over 10 the cable
company about the 7th of December.
Previous 10 this the cable company had
paid 70 the construction company S60.-
900 in bonds and $4,000 in stock, and
when it received the road agreed 10
pay all outstanding Liabilities. The
cable company also agreed to pay
500 600 In bonds, secured by mortgage,
and stock sufficient TO make, with that
previously issued, a total of $4,000.
Subsequently, the construction CO M
pany, winch virtually owned the road,
entered INTO an agreement with 4. j.
Bovine, ID. 4. BlOdgett and others 10y
which the latter were TO come IN on
an equal footing with the construction
company. They were 10 pay IN
$40 600 and to receive half of the
/
and half of the 900 bonds. The bill
alleges that the Grand Rapids syndicate
paid in only $4,000, but with the
understanding that they had fulfilled
their agreement, the complainant, as
general manager, turned over 10 them
! the full amount of stock and bonds.
Afterward the road wished to
raise S2l0,O00, and the money was
/ a, i,s- A f..
and IN order TO secure HIM the bonds
OF the company TO the amount of $780,
| 600 were placed in lis hands Subse-
| quontly the bOr Is were negotiated, Mr..
| BlOdgett was p~-d, and after paying all
! debts, commissions, ETC., about $50 900
was left in the treasury.
The $500, ,000 issue of bonds included
the $40 900 which, by the terms OF the
agreement, should 80 to the construc-
ton company.
The complainant alleges that the
members of the construction company
at first demanded the payment OF the
! $4,000 10 them according to the orig
inal contract. Aftcrward, the COM
| plainant alleges, Crosby and Breed
J cOnspired with a. j. Bovine, u. A.
! BlOdeott and the others To dcfraud the
/ complainant, and the company refuses
/ to pay the construction company.
The complainant asks that Nessrs
Bovine, Blodgett ct al. bc compelled to
pay in the $1,000, to make up the full
/ $40 600, and that the cable company
! pay the same over to the construction
company, together with the $40, 900 OBJ
tained for the bonds, and that the con
struction company be wound up and
! the effects distributed.
The bill also asks for two receivers,
one to receive and collect the earnings
/ Of the road, the other 10 have control
of the money received from the sale of
bonds and the rolling stock OF the com
pany.
On filing the bill, Judge Grove issued
an order restraining the cable company
from in anyway dIspOsingof the money
received for the bonds up to $1,000
/ and from selling or encumbcrng any
/ of the cars. rails and yokcs recently
/ purchased with the proceeds Of the
+ bonds.
An order was also issued requiring
I the defendants to appear on Monday,
! tho 26th and show cause Why an IN
+ junction should not issue.
The compliments solicitors arc
/ Thompson q Temple.