Omaha daily bee., 1896-08-16
CHANGE NOT SATISFACTORY
Old Interstate Hotel Project Revived in
Court.
MRS. RANGE SUES FOR TEN THOUSAND
Hotel stock Has Deen Transformed
Into Thcnter stock aud This Hy-
~pothecnted to Secure n Loan
Charges of Misrepresentation.

Mrs. Carrie Range, widow and sole devisee
Of the late Frank Range, has commenced a
suit in the district court which contains
a series Of charges against prominent and
leading citizens which are somewhat start
ling.
The defendants are the Interstate Hotel
company. the Interstate Improvement COM
pany, the Creighton Theater Building COM
pany, o. NJ. Carter, j. A. McShane, C. j.
Karbach, j. L. Markell, w. A. Paxton, G. c..
Barton, l.. b. Williams and John A. Creigh-
ton. The petition is a very lengthy docu-
ment and sets forth that Range and the de-
PENDANTS named above, on November 1, 1892,
formed a corporation under the name of the
Interstate Hotel company for the purpose
OF erecting a fine hotel building at the south
west corner of Fifteenth and Harvey streets.
1t is alleged that Range was induced to
enter the company on account of the fact
that the proposed hotel would be directly
opposite the business block belonging to
him. He subscribed for $4,000 worth of
stock and borrowed the money from the
Merchants National bank to pay for 1t, the
defendant, Paxton, signing a four months
note with him as joint maker. This money
was paid for the stock and 100 shares of
stock issued to Range.
II is luFlneT alleged tnat the company
purchased the two lots and a part of the
adjoining lot, all at the southwest corner
of Fifteenth and Harvey streets, for $125 900,
applying the 1000 paid by Range on the
purchase price. Excavations for a hotel
building were made, and it is alleged that
no further action was taken at that time.
1t is further asserted in the petition that
Range was declared insane August 1, 1894,
and the defendant Paxton, was appointed
guardian. January 2, 1895, 1T is alleged,
Paxton filed an application in the county
court asking that he be authorized to con-
sent. as guardian of Range, to a change in
the name of the Interstate Hotel company
to that of the Interstate Improvement COM
pany, and that he also be authorized to vote
the stock at meetings of the stockholders
and to deposit the stock as collateral Sc
curity for the payment of the note given
to the Merchants National bank. The order
was entered by the court, and a short time
afterward a similar request was filed, asking
that consent be given to a change of name
of the company to that of the Creighton
Theater Building company, for the reason
that a company was already in existence
under the name of the Interstate Improve
ment company. This request was also
granted, 1t being charged in the petition
that these proceedings were entirely without
the knowledge or consent of the plaintiff or
of any of the creditors of Range.
CHARGES OF MISREPRESENTATION.
The petition further charges that Febru-
airy %, 1895, without the knowledge or con-
sent of the plaintiff or any Of the creditors
of Range. amended articles of incorporation
were filed, changing the name OF the COM
! .panv 20 that Of the Creighton Theater Build
ing company.
It is further alleged that Range died
March %, 1895, and the plaintiff was made
his sole devisee and executrix. The debts
against the estate are said to aggregate
| 800, 900, and fears are expressed that the
estate will not be sufficient to pay the debts.
The defendants are charged with having
misappropriated the money paid by Range
and with having used 1t for purposes known
to be in direct opposition to his well known
wishes. Their acts in this particular are
alleged to have been ultra wires and void.
The acts of Paxton as guardian and the
order of the county court are also alleged
to have been void, and it is further alleged
that the orders issued by the county court
did not authorize a change in the funda-
mental object of the company in which
Range had bought stock, but simply author
lied Paxton to consent, as guardian, to a
change of name.
The petition then charges that 1t was
never the intention of the incorporators OF
the company to erect a hotel on the prop
erty in question, but that it was purchased
in pursuance of a secret agreement to re-
liove John A. McShane, w. A. Paxton and
John A. Creighton from a covenant to erect
an expensive business block under an agree
ment with the Boston Ground Rent com
pany.
1t is charged that the defendants had nc
power to apply the $40 900 paid by Range
to any purpose but that set forth in the
original articles of incorporation of the
company and that no one had any power to
hypothecate the shares of stock owned by
Range as collateral security for the pay
ment of the note held by the Merchants
National bank. 1t is also charged that the
theater building is mortgaged for 500, 900
and the court is asked to appoint a re-
ceiver for the collection of the rents, and
the court is asked to decree that the plain
tiff be given a judgment against the de.
PENDANTS for so, 900, and that the judgment
be declared a first lien against the prop
erty referred to, and that the same be sold
to satisfy the judgment.