The herald., 1895-10-12
A BIG CIVIL SUIT FILED
Almost Half q Million Dollars
Involved In the Case
A RELIC OF THE BOOM DAYS
Purchase Of the Semi.Tropic Land and
Water Company
By the San Bernardino Investment Company.
The ninority Stockholders Want
Settlement

complaint was fled with the county
clerk late yesterday afternoon in one OF
the most important suits ever brought in
Southern California, involving as 1T does
almost half a million dollars, and if the
allegations on which it is based are SUBJ
stantiateu. rejecting on the integrity OF
some of the best known men in the
southern part of the state.
The title OF the suit is John W. Craig,
M. j. Craig, X. E. Sloan, E.P. Dorienns,
l.. Morris, G. II. Morris, John Campbell,
A. 3urke and S. Merrill VS.. George H..
Bonebrake. F. G. Howes, Wright Sigler.
NJ. D. Chamberlain, the San Bernardino
Investment company and the Los An
geles National bank.
The complaint sets forth that the San
Bernardino Investment company was or
ganized in March. 1889 with capital
stock of $500, 00U. and the principal place
of business of the corporation being
located in San Bernardino. OF the total
stock plaintiffs own $102, 800. The balan ce
is controlled by Bonebrake and Howes,
who, with the others named above, con-
stitute the board of directors. With the
exception of Bonebrake and Howes, the
other mem befs of the directory have but
one share each, and are wholly under the
influence and control of the said Bone
brake and Howes, and devoted to their
interests as against those OF the other
stock FOLDERS. In March, 1889, there was
paid up in the treasury of the San Ber-
nardino Investment company $500, 300.
For the purpose Of defrauding the defend
ant corporation, the San Bernardino In
vsst,nent company, Bonebrake and
Howes induced the board of directors to
purchase 1000 shares in the Semi-Tropic
Land and Water company, paying there
for $500, 900, when said stock could have
been bought in the market for $50, 900, and
tn On used the capital for their own use
and benefit. thereby defrauding the other
cause of action it is alleged that 997
shares additional of Semi-Tropic stock
was purchased for 500, 700. when the mar
ket value was but $4,000 Two notes for
$40, 600 each were executed and Endorsed
by the Los Angeles National bank, were
sold and the remainder, $50, 700 was also
| issued in the usual way and misappro-
priated.
AS third cause of acton, it IS alleged
that Boneprake and Howes caused the
purchase by the defendant company of
$50. 900 worth of worthless notes which
tional bank. This amount was first
charged up on the books of the bank as
an overdraft of the defendant corpora.
tion,t account subsequently being paid
by the company giving its note.
As fourth ca Use of action, it is al
legged that defendants conspired with W.
M. Sheldon to d-fraud the Semi-Tropic
company and defendant corporation. the
former of S34, $50 and the latter of 5000
shares of SemiTropic stock. This was to
be done through a new company, the
California Investment company, IN which
George Monroe, a brother-in.iaw Of Bone
brake, was interested.
Judgment is asked against defendants
for the difference between what the stock
was worth and the inflated prices paid,
for $50, GOO on the notes and such other
| relief as is proper and right.