Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1893-01-05

conspiring and agreeing; that
the combination, conspiracy and
agreements above mentioned, or any OF
them existed, or had been made, the
same being carefully concealed thereto.
The defendants. W. P. Hubbard, w. d.
UDtegraff aud John NJ. Sweeney, being
members OF the Board Of Directors,
thus, plaintiffs say on Information as
aforesaid, contracted with themselves
and Ferris & Kaufman for the Com
pany's work for
A FRAUDULENT AND ENORMOUSLY EX-
CEssIvE
price, without any knowledge OF or
notice or information TO any OF the
Stockholders or Directors except the
FIVE so contracting, that any one ex-
cept Ferris 4 Kaufman and this Com
pany were parties TO the contract.
The charter Of this Company was
obtained and dated on the 9th day OF
May, 1889, with J. EIwOod Hughes,
John Mcclure, John NJ Sweeney. n. B.
Scott, Henry Schmulbach, w. d. Upte-
graf and w. P. Hubbard as corporators.
No definite plans, however, had been
adopted in regard TO the construction
of its bridges up to to October =, 1889.
But plaintiff alleges on reliable infor-
nation that it was then understood
between the said Hubbard, Sweeney,
Jptegraff, Ferris and Kauf-
mann that they would be interested In
the profits 70 be derived from the con-
struction Of the bridges, and that Fer
ris & Kaufman should take the con-
tract for their construction and arrange
for returning to Hubbard, Sweeney and
UDtegraff their proportion of the profits
from the execution Of the contract.
ION or about November 1, 1889, it
was decided il would be better TO start
taking subscriptions TO the capital
stock Of this Company in Wheeling,
and plaintiff alleges on like information
that it was then thought by the five
last mentioned defendants that that
IN ORDER TO ENCOURAGE
other subscriptions they should all
subscribe q certain amount. In
accordance Herewith Sweeney, Up
tegraff and Hubbard each sub
scrIbed $4,000, and Ferris and
Kaufman each $4,000, making S25,
600 to the capital stock. All OF the
stock in the Company was divided into
shares Of 500 each.
early in December, 1889, subscrip-
tions to the capital stock were coming
In slowly. There had been subscribed
by other parties than those who were to
be interested in tho construction as
aforesaid, $50, OOO including $4,000
subscribed by Henry Schmulbach,
IS, 900 by ]. E. Hughes, and
SIS, 600 by John Mcclure. About this
time it was decided by all Of the large
stockholders interested in the Company,
being the said Sweeney, Hubbard, Up
tegraff, Ferris, Kaufman, Schmulbach,
Hughes and McLure, that theJ should
INCREASE THIS SUBSCRIPTION,
and each Of them made an additional
subscription OF $1,000, except Schmul-
bach, who increased his subscription
$40, 1000, making in all S45,0 900 addition
al stock, and aggregating with the
above $50, 900 and the original subscrip-
tion Of SOS, 900 by Sweeney, Uptegrat,
Hubbard, Ferris and Kaufman, $780,
900 total stock subscribed.
Sat this time, plaintiff is reliably In
formed, and therefore charges that 1t
was clearly decided among the five de-
PENDANTS last named as to the method
OF procedure in the construction Of
the bridges, as follows: One hundred
thousand dollars worth Of stock had
been subscribed By other persons than
these I'VE defendants; that eEE&ISui,
estimate Of the cost Of the bridges hay
been made by them, and that the result
as determined by them was that 1t
would cost about S320,O00 for the con-
struction OF the bridges, and about
$50, 900 for the real estate which 1t was
necessary to buy for them and their APP
proaches; that it was further decided
by the same parties that 5000 600 In
bonds should be issued, the interest
thereon be guaranteed by
THE TWO STREET CAR COMPANIES
of Wheeling, who would cross the
bridges with their tracks; that Sweeney,
Uptegraff and Hubbard, being interest
ed in and Directors Of those companies,
guaranteed that they would agree to do
so; that the total amount Of stock Is
sued on the new bridges was to be
$500. OOO-in other words, that was to
Do the total capital stock-and is now
the total capital stock Of the Company;
that Ferris and Kaufman were to take
the contract for the construction OF the
bridges for $3.50, 900; that they
were to subscribe for the balance OF the
stock not taken, and were also to take
the 5000, 600 OF bonds In part payment
OF the $3.50, 900; that the remaining
$3.50, 600 OF said $3.50, 900 was to be paid
them in cash so far as II exceeded the
amount OF stock subscribed by Ferris 81
Kaufman; that the concerted action OF
all was TO be used towards the sale OF
the bonds and capital stock, and Dlac-
ing of the same In such way that the
majority of the stock upon the compile
ton of the bridges would remain in the
hands Of Sweeney, Uptegraf, Hubbard,
Ferris and Kaufman; that an agree
ment covering this method and regu-
lating the respective profits OF each OF
the five defendants aforesaid was
drawn up by Ferris and Hartmann
about March 1, 1890, few days after
the acceptance OF Ferris & Kaufmann's
offer by the said meeting of the Board
OF Directors Of February "A, 1890, and
was by Ferris & Kaufman submitted
to Sweeney. Hubbard and Uptegraf,
but was held by them for long time
without signing the same; that the
offer was made as aforesaid, February
"a, 1890, at S452, 900, by Ferris 81 Kauf-
mann, instead OF $4,000, as at first
contemplated, for the construction Of
the said two bridges, aud they were
TO be allowed for the same
SS97, 900 instead OF 100000, as before
estimated, and these changes appear in