Omaha daily bee., 1895-06-25

Omaha plants went into the hands Of receiv-
ers, the showing being made at that time
that the Denver property was not worth the
amount Of the bonds that were against II.
As both properties were then In control Of the
same company, the Omaha property followed
the same course and became the subject OF
litigation in the courts. The case was ar
gued some months ago and everything went
to show that the Omaha property was in good
condition financially II allowed to stand upon
its own bottom. The stockholders Of the
Illinois company made their claim, demanding
the return Of the property, alleging that the
New Jersey company had failed to live up to
the terms Of its contract.
HAS HAD LOTS OF THEM.
The Omaha plant has been in the hands of
receivers upon three different occasions.
Messrs. Ellis l.. Bierbower and Alonzo B.
Hunt were appointed originally on February
13, 1892, upon application Of the Denver City
Water Works company, or Sullivan faction.
This was caused by big split in the board
of directors which consisted Of nine, includ-
ing the president. Five were necessary for
quorum. During a big row at one Of the
meetings President Underwood resigned
$4,000 per year position anticipating prompt
reelection to the presidency. But the
board of directors fooled Mr.. Underwood
Four Of the directors were Venner men,
The other four were loyal to the sullivan
faction. The repeated efforts to hold a
meeting o. the boa'd allied as quorum could
not be obtained, owing to the fact that FOUR
OF the directors formed combination to
refuse to attend the meetings. Without
president ana without a quorum 1t was I'M
possible to transact business. The Denver
faction imme eiiately applied for receiver
ship and Messrs Berbower and Hunt took
possession of the plant as Judge Duniy's ap-
pointees and operated it from February TO
October IS. 1892 when they were succeeded
by f. Hyde Rust of New Jersey.
Mr. Rust was originally appointed re-
H,, 4ln n
1892, but found the Omaha plant in posses
sion of local receivers on an order of the
Nebraska court. Mr.. Rust then went to
| St Paul and secured an order from Judge
| Caldwell which ousted the local receivers,
Bierbower and Hunt, on october 49, 1892.
| Rust sought to act as Joint receiver OF the
! properties of the New Jersey company at
Omaha and Denver but found that the Den,
yer plant was also in the hands OF local
| receiver Dennis Sullivan.
VENNER AFTER RUST
! Then followed the Rust regime, with Ven
| ner of Boston on the trail Of the New Jersey
| receiver and Mr.. Venner was out with a
club Of generous dimensions fighting Mr.
| Rust and all his old compatants. In July
| 1898 Mr. Rust was removed by order OF
Judge Dundy. Alonzo b. Hunt ap-
pointed to succeed him and served
| from July to October 1893
| when the Farmers Loan and Trust company
| Jumped into the arena and made application
| as trustees Oh lut UOluuOlutlS lul luC ap
pointment of new receivers. Judge Dundy
| then appointed Il. l.. Bierbower and AlonzC
| b. Hunt who are now in possession OF the
| plant and whose term of office Is indefinite
| until the order of sale is made and the ques
| ton of a stay of proceedings is fully deter
| mined. E. Hyde Rust also has stack o.
| legal literature prepared by Attorney Charlie
| Offutt on the federal docket. The New Jer
sey receiver filed a petition to have the fed
eral court for this district ratify his accounts
as allowed by the New Jersey chancery courts
Judge Dundy detailed Special Master Bodint
to investigate the claims and examine thu
| books during Rust's administration and tn
special masters report disclosed many in
teresting things, eliminating with recon-
mendation that over $1,000 of the Rust ac
counts, etc, be dsallowed. The report of tn
special master has not as yet been full
passed upon by Judge Dundy, but the latte
recently threw out Rusts application for
cross bill in the foreclosure case.
The air is now filled with talk about mu
nicipal ownership Of the water works plan
and there is a rumor prevalent that an at
tempt will be made to urge the city to buy 1t
1t is positively stated that the plant vii
be bought in at the sale by eastern capita
81, 900 900 will be put in when once the be
] wildering litigation is settled. In event @
appeal matters in this respect will doubtles
resort passes upon the question. In tn
meantime Receivers Bierbower and Hunt wi
DO business at the same old stand