Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-02-02
ASKED FOR A RECEIVER.

Minority Stockholders in the Mckeesport
Light Company Accuse the Edison Peo-
pie of Trying to Wreck the Concern
Swamping the Corporation With Heavy
Debts.
A bill in equity was filed yesterday ask
ing for the appointment of receiver for
the McKeesport Light Company. The
plaintiffs are stockholders in the CON-
panv They are Thomas L. White, H.
Reiber, f. Reiber, d. Stratton, NJ f.
Ryan, W. A. Kelley, Amelia Latshaw,
j. X. Kelley, j. E. White, admin
istrator; C. H. Hitzrot, G. L. Reiber
and j. E. Speer. The company, they state,
has capital stock of 100000, divided into
1000 shares at $50 per share. In 1885 the
Edison General Electric Company entered
into q contract with the McKeesport COM
pany for the use of the incandescent
system of lighting, and received S17, 800
in stock $500 in cash and sum equal to %
per cent of money expended. Until 1889 the
local stockholders controlled the company.
In 1891 the Edison company purchased $50
shares of stock additional, giving them 600
shares in all In 1890 the receipts were s33-
600 and the net profits SLIGO or Il per cent
suggested a new building and an increase in
the system of lighting to meet the demands.
The directors obtained new building and
machinery, and increased the busi-
ness until the income was over 81, 900
q month. T. L. White, j. E. White, Ii.
Reiber and Thomas Reynolds, as directors,
Endorsed the company's paper to make these
improvements and become individually
liable to the amount of nearly s22 600. The
Edison Company refused TO vote TO bond
the company and fund its debt unless % per
frNff rTnf.r
it under the lighting contract. In Novem-
Der 4, 1891, a meeting was held, and though
there was not quorum 1t is alleged the
Edison Company declared elected as direc-
tors J. NJ. Risher, Thomas Reynolds, j. H.
Silverman, A. NJ. Neeper, H. NJ Darling, -
Gillette and - Adams. None of these
were residents of hcKeesport and four Were
agents and employees of the Edison Company
Some of the plaintiffs in this case filed
suit to have these directors restrained from
taking charge of the business and the case
is still undecided. They, however, took
forcible possession of the plant, broke open
the safe, took the books, papers, ETC., and
assumed control They. it is charged, have
mismanaged the business and injured the
credit of the company. They have per-
mitted $4,000 OF the company's paper to re-
main under protest, have lost one of the
largest contracts, that with the National
Tube Works, paying sl,200 a month: have
failed to furnish the city of Nc
keesport with light and the CITY
has given notice that it will cancel
to the Edison Company for So, 600 when the
entire Indebtedness does not exceed s., coo,
and that is not vet due; they have permitted
suits to be entered, made no appearances
and judgments were taken by default, and
have not sufficient money to pay current
expenses. 1t is also charged that the acting
manager of the company, who is also a di-
rector in the Edison Company, has advised
creditors to sue, and the Mckeesport Com
pany would be sold by the Sheriff.
The acting, president, it is alleged,
has admitted that he was taken
care OF before he would sign the
confession of judgment to the Edison Com
pany. 1t is claimed that they are now about
to make an assignment Notwithstanding the
protest of the plaintiffs, who are stockhold-
ers. They have caused the Indebtedness to
increase to s4l ,009, without the Edison Com
pany judgment and want to force sale at a
sacrifice so the Edison Company can buy it
in. The appointment of a receiver is asked
for to take charge OF the business until the
debts are paid or a sale made. Wednesday
is fixed for hearing in the case.