Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1891-11-21

company, said bonds to be held by the
company and sold 10 raise money Tor
the legitimate corporate uses thereof;
that said bonds being duly executed.
the directors, In order to provide for
the largely Increasing expenses caused
by the extensions, borrowed sl0O, 900,
depositing as collateral 100000 Of
bonds; That the said Indebtedness ma
tured on August 20. 1891, and that
being unable 10 raise the money nj
ranged with the bank that they might
have 500, 600 Of the 100000 OF bond.
released on payment u $4,000 Of said
800, 900 Indebtedness, aud thereupon
tue directors obtained $4,000 from an-
other bank, maturing January 10, 1892,
aud deposited M collateral 100000 Of
bonds, leaving the other 100000 with
the first bank ms collateral security for
the payment Of $4,000 remaining un.
paid OF the $50, 900 Indebtedness which
Ia due upon demand; that said com
pany, under lite present management,
II not able 10 make payment OF the
sa5, 600, and the siOO, 900 bonds Of the
company are Ia jeopardy, and II placed
upon the market to be sold as collateral
would necessarily be sold alta sacrifice,
and the property lost to its sharehold-
ers; that the parties through whom
thCee two several loans Of $4,000 had
been obtained, aud 10 whom they are
due, arc friendly 10 tire interests Of
the defendant directors, and II
taid bonds were offered at forced
sale as collateral, their purchase,
the foreclosure Of the zane, ami
the reorganization Of the company un.
der such foreclosure could be ~ con
.I...I..N al l. NtaN ~ NNta
said directors that II shall be- No con.
Quoted ~ 10 secure to them the whole
Of the property Of the company, thus
Ignoring entirely tho Interests Of the
plaintiffs.
Plaintiffs further allege AZ evidence
OF the plan aud purpose Of the board
Of directors TO wrock the railway sys.
tenn and wrong tho plaintiff, that u
has been grossly mlsmanagcd; that
while there have been many Improve
ments mad. and put In recently 10 the
better operation " an electric system,
aud while the knowledge Of methods
OF the economic conduct OF such Hys.
TENS has greatly increased the dire.
tors have per-istently aud continuously
refused 10 adopt improved methods In
their operation Of the railway system,
that they have maintained said System,
which now has thirty miles Of line,
with one electrical circuit, and. ~ n
result thereof n breaking In the linv
carrying the current, Mt any point,
would cause the shutting down Of the
entire system and the stoppagc OF every
car.
The manner ia which the ears, ap.
paratuS, etc, are said 10 be- neglected,
~ dwslt upon at length, and the state.
ment Is made that because Of the atten.
ton which has boon given 10 the ex-
tensions "wlth the motives nfofe.
said" tie proper attention has
not been given 10 the use OF
the company's property for It, care
and preservation aud for the most pro.
illable operation of the road.
Tie manner In which the road h
operated and the alleged employ nont
Of large number Of unnecessary men
on account VI the repairs needed on nc.
count VI the tax system comes In for a
fair share OF attention, the complaint
rtsting that by reason thereof the cx.
pens.s OF the road arc increased 10 an
unusual and unreasonable amount;
that the books Of tho company show
that while tbs gross earnings are in-
crsasing, the expenses are incrca-ingln
much larger proportion; that the
books show that during May, 1880, the
earnings Of the road were sii72T.G5
aud the operating expenses sg,5lSl Is;
making the net earnings sj,9li.I7,
while during May, 1891, the earnings
were SCI ,sJ9.0O, the operating expen-
ses, sl7 i08.li, and the ret earnings
only 81, iOJ.76; that during the four
months from April 1, 1880, TO July
3l-t, 1880, the total earnings
were 500, 2sO.90, aud during the
same period In 1891, sss, 0s2.iO, nn In.
crease Of 81 7Da.OO, while the operating
expenses IN 1890 for the four months
were s37, s20.l I, aud Ia 1891, 81, il7.35,
making the net earnings for the four
months In 1880 SIS, 5000, rs against
$50, 1854 ior the same period Ia 1891,
decrease Of Sll ,sh5.8l, Notwithstanding
there was AN Increase In the gross
earnings In 1891 over the earnings Of
1890 Of seize.
The plaintiffs further allege that
they have notified tho defendants in
writing asking and demanding that a
meeting Of tho board Of directors be
held. aud that proper action be taken
TO nj once protect and care for the In.
terests " the defendant comTany, and
seek redress for damages sustained by
the company from the individuals
named la the complaint for their
wrongful acts, but that they have
failed To call and hold meeting, and
have failed 10 demand OF said indi-
vidual defendants aud TO make, a a
board. PREPARATION the wrongful acts
complained OF.
Wherefore plaintiffs pray that an
order may be entered appointing u re-
ceiver for all the rights and properties
ana business ofthe company, directing
said receiver 10 take possession OF
all such property OF the defendant
company and 10 operate and care for
the -ame under the order M ! direction
Of the court, and for the protection and
benefit Of the PLAINTIFF herein aud all
other stockholders; that q restraining
order he Issued directed 10 each Of the
defendants restraining them, ms officers
aud directors, from further mourning
obligations against the company In the
making Of extensions aud In carrying
On and operating Of extensions Of the
road not authorized by the charter
thereof, and from further using the
bonds Of the company aud from giving
obligations OF tho company with large
and unusual rates OF Interest ne per
cent, and from further carrying on In
any way any wrongful acts with the
intent aud purpose Of destroying the
credit and assets OF the com
pany, and that nm account