The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-11-22
Suit Against the City Railroad

Roland r. Conklin and Samuel M,
JARVIS, the Kansas City capital.
lists, yesterday brought suit in the
Ihlrd district court against the Salt
Lake City Railway company, Francis
Armstrong, W. P. Read, A. W. McCune.
H. u Chambers, Spencer Clawson and J..
. Wells The suit is brought TO secure The
appointment of receiver. and in their
com plalnt the plaintiffs set up that they sue
LOT themselves IN behalf of all other parties
. Mno may choose TO come in as parties to
Inc actlon. That on January 26. 1872. its
capital stock was S1S0,0O0, divided into
5,oOO shares, to be issued at the rate of
S2O,OOO per mile for each mile of SINGLE
track OF railway constructed, which at that
tlme was not TO exceed nine miles.
In 1913 the articles of incorporation
were amended and also in 1889 at
Whlch time the capital stock was in
creased to Sl,O0O,000, divided into 20. 600
shares, to be issued at the rate of s20'000
per mile for each mills of single track
olnce the date last named no other amend
ment mas been made to its charter, and be-
ginning with July a, 1889 the plaintiffs
nave from time to time purchased $3.50
shares, Zl6T Al shares being held by Jarvis
q Conklln, 2OO shares by Priscilla Jarvis,
III 81 shares by Samuel M. Jarvis and
TINS set up that the company in violation
OF the charter is operating beyond the citv
nmlts; that the number of miles is two and
a quarter; that the cost of construction was
FIo,ooo; thaL there was no necessity for il:
that IL was through territory that the com
pany knew was not profitable: that it has
entalleu STEADY losses; that meeting was
hela IN April, 1891, which plaintiffs asked
10 De adjourned until May at which time
a. w. McCune, Walter P Read, r. C.
Chamoers and Spencer ClaWson werein the
controI and refused TO pass upon the request
OF plalntltfs; that in so doing and in The sinh
sequent election they became "parties to
the conspiracy and plan for the conduct of
the SAID corporation contrary to its charter
ana powers and to the wrong and damage
OF the interests of the plaintiffs aforesaid
That since the action of the board of direc-
tors has been without the knowledge or
! consent OF the plaintiffs for the beneTjt of
| themselves and against the plaintiffs; that
McCune Chambers Armstrong, Clawson
and Read have cons ired together to man
age the affairs of the company to the injury
OF plaintiffs, and have permitted the liabili-
Ties OF the company to increase to the pres
ent amount of S34, COO; that heretofore il
was voted to issue bonds in the amount of
SoOO,OOO, the same to be secured by first
mortgage upon the property of the COM
pany; that to provide for the largely in
creaslng expenses caused by the building
ana operation Oh extensions, borrowed $780,
OUO, deposltlng as collateral S4OO 900 of
bonds; that said Indebtedness matured
august ~ last, and being unable to raise
the money, arranged with the bank that
they might have S1O0,000 of the s4OO 600 of
bonds released on payment of $50, 900 of
sald SIOO,OOO Indebtedness, and thereupon
the directors obtained $50, 600 from another
bank, the same maturing january 10. 1892
and deposited as collateral 500 600 of bonds
leaving the other $300,000 with the first
pank as collateral security for the payment
OF S35,O remaining unpaid of the $50. 600
Indebtedness, which is due upon demand:
That said company under it's present man
agement is not able TO make payment of the
$50, 900, and the S400, 900 bonds of the com
pany are IN Jeopardy, and if placed upon
the market to be sold as collateral ynuId
necessarily be sold at a sacrifice, and the
property lost to shareholders. Plaintiffs
further set up that the company has
been greatly mismanaged that the
company's property has been neglected,
that the expenses are increased to an
enormous extent; that tie books show that
during May, $780, the earnings of The road
were Sl4, 72165 and the operating expenses
S9,5l3. Is, making the net earnings S5,2l3.47:
while during May, 1891, the earnings were
81 ,eO99O the operating expenses ST, 4O3. IA
and the net earnings only 81, 4O6 rs; that
during the four months IRON April l, 1890.
to July 81, 1890, the total earnings were
S66, 2S9.2O, and during the same period in
1891, SIS, OS2.l an increase of S2I, 1872 90,
while the operating expenses in 1890 for
the four months were S27, S29 IA, aud in
1891, STl, 5lG35, making the net earnings for
the four months in 1890, SIS, 1906 as
against ZIG, 564 for the same period in 1891.
a decrease of 81, S95.3l, notwith standing
there was an increase in the gross earn
ings in 1885, over the earnings of 1890 of
81, 119.
Wherefore plaintiffs ask the appointment
OF receiver who shall be instructed by the
court to save the loss OF the 800, 900 bonds
held as security for $4,000 Indebtedness,
etc.