Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1891-12-03

kuoWtlket NpUsent anu anpIpNH VI NHt
plaintiffs, Incurred n large indebted
meas, which at the time Of the said
election, was still outstanding. That
In order to carry the said Indebtedness
nj a low rate Of interest, and 10 avoid
Of dlsposing Of the bonds Of the COM
pany at n considerable discount In View
OF the tightness OF the money market,
said company IN March, 1881, borrowed
Of the Park National bank, Of New
York, 100000 for four montns At pet
cent. per anuum aud deposited with
said bank $500, 900 Of the bonds OF the
said company, reserving, however, to
said company the right at any time 10
withdraw said bonds or any portion
thereof aud sell the sme aud apply the
monies obtained therefor upon payment
Of said note. That iu this way, 1900
was paid Oh pald no,e July %, 1891;
si,5as.83, August %, 1897, $4,000,
September ~, 1891, ami 10000.
August ~, 1891; leaving balancu Of
s3i,O02.i7. Ga this last date the $780,
900 note was taken up and new note
given the said bank by the said com
pany, for the balance due thereon, pay
ablc on demand, at per cent. interest
pee anuum. That the said last named
note was paid by said company In full
on tho lglh day Of November, 1891,
md the bond. held by the snid bank
10 secure the payment " the came
were on said day released 10 said com
pany.
That the present total outstanding
Indebtedness Of said company does not
exceed sl8j,00O, aud 10 secure tho
payment OF said indebtedness there u
now outstanding as collateral security
therefor 100000 Of the bonds Of said
company. That the rates or interest
paid ON said Indebtedness by aid com.
pany are very low, considering the
usual high rates Of Interest now exact
cd on borrowed money In view Of the
strlngeucy In the money market. That
sald company has been 20 managed
that It's security IL ilrst-class, and IL Ia
In possession Of ample funds and assets
10 meet all it, outstanding obligations
as they mature. That no part Of the
property or franchise Of the said conf
pany In Ia peril by reason VI any
part OF such Indebtedness. That under
the management Of said defend
ants Of said company the Insects and
property have vastly Increased In value
10 that the stock purchased and held
Tor the said plaintiffs could be now sold
and disposed ofby them nj more than
double the amount Of It's original cost
Of them, aud all expenses Incurred by
them In respect thereto.
Defendants further deny that the
parties through whom the two several
loans u $50, 900 each mentioned In said
complaint were obtained, or 10 whom
they are due, are 80 ffiondly u the Ia.
tcrrsis Of the defendant directors, or
otherwise. that n said bonds were
offered at forced sale as collateral, their
purchase and foreclosure uf the same,
or the reorganization Of the said com.
pany under such foreclosure would be-
80 con Quoted, OF that II IN the Intention
Of the said uirectOrs, OF any Of them,
that IL shall be- No conducted us 10
secure TO them, or any u them, the
whole OF the property Of the said com.
pany, or In any manner Ignoring the
Interests Of said plaintiffs.
Defendants dony that $4,000 OF the
alleged Indebtedness Of said company
being other than the $1,000 mentioned
In the complaint and evidenced by the
note Of liz officers, draws interest at the
rate OF ~ per cent. per Annum, or that
said raie Of Interest Ia unusual or exO.-
biaDt or unreasonable, or tonds 10
diminish the security OF assets Of faid
company, or that such IN u rulnous rate
OF interest, or l. promised 10 be- paid or
IA Incurred because OF tho ruinous or
any bad policy q the sad board Of
directors inaugufated or carried out by
them for the purpose set forth In said
or for any other purpose.
Or that the said company has With a
lew days, or at any time, incurred an
obligation to tho extent OF $50, 900, or To
any extent, 20 meet which obligation
there ARE no funds In the hands Of the
said company for it, payment.
Defendants further deny that there
II, or ever was, any plan or purpose OF
any description ON the part OF sald
board OF directors, or any OF them, 10
wreck the said railway system or other.
wise inlure tho same or ruin the
plaintiffs Of all or any OF their rights
therein, or that said entire railway
system or any part thereof, has been
grossly or at all mismanaged by said
defendants.
Said defendants further deny that
under the circumstances alleged In the
OF otherwise, or at all, the
said directors have continuously or
or otherwise refused or
failed 10 adopt improved methods IA
their operation Of said rail way system;
Or that they had maintained said sys.
TEN with but oneBingle electric circuit,
Or ~ result hereof, n break In line
carrying n current at any point would
cause the shutting down OF the entire
system or the stoppago Of every car.
On the contrary, defendants allcge
that they have adopted and put In
operation In their System Of railway
all practical and valuable Improve.
mcnts Us fast M they have been dis.
covered and their utility and value
made manifest. That their said sys.
tenn Of railway n aud has been for a
time past divided Into
several different circuits, 30 that the
or the interruption OF the
current at one part OF said system does
not interfere with the movement OF the |
iars in other parts thereof.
Defendants further deny that they
have been making extensions as NJ. |
cged In said complaint, or expending
grge sums OF money thereon; or that |
Ior long time, or for any timp past,
rom twelve 10 fifteen or any number |
II motor cars have been In the streets |
,vefy day OF any day, or arc not run
,ver the pit In the car house or repair |
hop for the purpose Of making an cx. |
animation Us alleged or otherwise, or |
hat after standing In the streets ali
night or otherwise without propor /
ARE, the said lines are run out upon
he lines tue following day without