Little Falls weekly transcript. (Little Falls, Morrison Co., Minn.) 1894-19??, 1896-06-26
THE GAS. CASE AGAIN.
Judge Seatla Decides the
Bonus Stock Is Liable
'' 'l.-x # In Full. tx
The Total Liable Stock Reaches
$27,OOO-Claims About
i $4,000. al

r%r. .'' ra - ~0SAOOs E...-. ~.
Judge Searle has rendered u de-
cision in the case OF f. Rogers va. the
Peoples Gas company ami the
various stockholders, consisting OF
many uf our prominent citizens, and
The decision is in favor of Rogers to
an amount OF $2,S92.47. The next
largest claim is that Of Val. Wetzei
Tor $2,i63. There are other claims
which will bring the amount up to
about $4,000. The findings Of Judge
Searle cover sixteen pages OF closely
type written matter, and no less
than nine attorneys appear in the
case. The Judge holds that the
various stockholders are liable for
any claims against the company to
the extent OF $4,000. The heaviest
stakeholder is p. H. Gross, who has
$4,000, next is C. J.. Haines. with
$7,CO0. 1t will be remembered that
the stockholders were to receive
"bonus'' stock to the amount offour
times livestock they subscribed for.
That is. one who subscribed for $l0O
In stock, received in fact, $500 worth.
There was n conten ton in.court that
as this bonus stock was without
consideration, it could not be held
liable, but the decision takes the Op-
posite view. Some of the stock
holders had never actually received
any stock, but the court holds them
liable on their subscriptions for the
original emo bonus stock regardless
OF delivery or acceptance. If all the
were able to pay their
share the matter might soon be set
tied, but some of them are apparent
ly unable to do so, consequently
there is prospect OF more litigation
among the stockholders. The case
is a very complicated one. and is OF
such Importance that an appeal to
the supreme court is possible.
The gas company was started
about four years ago, and supplied
light to several consumers for few
months. 1t required constant addi-
ton of capital to keep it running,
and a. heavy debt was finally accu-
INFLATED. The different stockholders
failed to agree about supplying the
necessary money to continue, and
the plant was placed in the hands OF
the court. It ran for a short time
un,ler the direction OF the assignee,
and then stopped in 1898. There has
been all sorts of litigation since then,
the stockholders disagreelng among
one feature of the con-
test being the dispute over the
ownership Of the lot upon which the
gas plant is built. The title
of the lot was in the name of p. II.
Gross, the president OF the company,
and some of the other stockholders
claimed the lot was purchased for
the company. There is now case
in the supreme court inv diving the
title to the lot, the lower court nav
ing decided that the company had a
right to the lot by the payment OF
800 to Mr.. Gross.
After the company had been i'll the
hands of the court for awhile it was
sold at auction to John hester, one
OF the stockholders, and he still owns
it. 1t is understood that some
other stockholders have a share in
Mr.. Nester's ownership.
The plant was originally built on
the REPRESENT tion that it could
compete with incandes-
cent lighting in the business portions
of the city at the prices charged by
the Electric & Water company.
The total cost of the plant. it's opera
ton and the following litigation
has probably exceeded $4,000, and
may reach $4,000. So far it has
proved an unfortunate investment,
as no one has been benefited. It
has, we believe, increased among,
some the antagOnisn to the Electric
& Water company. AS strictly
business enterprise there was no de-
mand for a gas plant in this city,
but most of the stockholders looked
at 1t other wise, and were satisfied 1t
would meet with a public demand,
add q convenience to our city, and
pay q fair return on the money in
vested. At various times there has
been talk of again running the gas
plant, but the decreased demand for
light in the city at present would
make it difficult to establish the
plant on a paying basis. Lighting
plants are not the bonanzas that es-
Inmates indicate.