The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-04
AMENDED COMPLAINT
SUIT AGAINST 4M,KEE AND WERNER
TAKES A NEW TURN.
Alleged Fraudulent Transactions of
The Two Street-Car Men More
Fully Set Forth.

An amended complaint IN the case against
the Citizens Street-railroad Company, in
/ which the appointment of a receiver Is
asked. was filed in the United States Dis
trict Court yesterday. The suit is entitled
e. Dwight Church and Nellie Church. ex-
ecutors of the last will of James A. Church.
deceased, trading as partners under the
firm name and style of Church & Co.,
against the Citizens Street-railroad Com
pany, a corporation, and Augustus L. Ma
son, William l.. Elder and William f. Mil
holland"
The amended complaint goes more fully
into details co 1cerning the organization and
reorganization of the Citizens Street-rail-
read Company, its transfer to Messrs. Muir
ray A. Werner and H. Sellers Mckee. anc
the transactions of these gentlemen by
which, it is alleged, they fraudulently is
sued stock and bonds for purposes of spec
ulation and deceived innocent purchasers
into buying them at a. large profit to
Messrs. Werner & Mckee.
The prayer for the appointment of a re-
ceiver Is left in the amended complaint,
but the prayer that the court appoint q sue
cessor to the Solicitors Loan and Trust
Company, as trustee, is omitted. 1t Is al
legged that the completion Of the system Of
street railroad and its equipment and OPP
Grafton was merely a pretense for an In
crease Of stock, for the issue of bonds and
the execution of mortgages, and was for no
lawful on authorized corporate purpose;
that the price paid by Werner & Mckee
($2, SOC, 000) for all the stock OF the company
was greater than its actual value, except
for speculative purposes; that Werner q
Mckee issued single shares to individuals
sufficient for the reorganization and then
unloaded the new stock and bonds on inno-
cent purchasers, and that the scheme was
merely one to reimburse Messrs. Werner &
Mckee for the outlay and that they might
profit both in the rise and fall OF the stock
on the market. The amended complaint
concludes as follows:
And your orators show unto your Hon
orS that controversies and disputes nave
arisen between the defendant company and
the city of Indianapolis relative to the
right of said defendant company to occu-
py and use the streets of said city Tor
street-railWay purposes and that litigation
has grown out of such disputes and contro-
versies, both in this honorable court and in
the courts of the State of Indiana; that
by reason of the wrongful reorganization
Of its bond and stock liabilities, as here
inbefore set forth, said defendant company
has jeopardized its right or franchise to
exist as a corporation, and, at the suit of
pany would probably. be ousted of its cor
porate franchise; that under the decision
of the City street-railway Company
against the Citizens Street-railroad Com
pany, it was decided in the controlling
held all it's Gfranchise subject to
the right and power OF the Cen
eral Assembly of the State OF Indiana
orators referring to the said decision for
greater particularly; that in view of the
Assembly of the State of Indiana, about to
convene, rightfully may, and probably
mat Tllii the Inter dif 0s ann9 and duo ofnc fasne Of said a de1
PENDANT corporation, by reason of the facts
aforesaid, are entirely incompetent to MAKE
a settlement with the city of indianapolis
or secure fair terms from said General
Assembly.
purpose and intent of the directors and
officers of said defendant company to
wreck the same, and by ana through pro
value of your orators stock aforesaid.
And your orators now bring into court
their two () certificates of stock for such
disposition as your Honors may deem
proper and Just, and being witnout rem m
aid of this honorable court and that they
have full discovery in the premises.
THAT your Honors inquire into said stock
and bonds and cancel and annul so many
and so much thereof as may be found to
be held by said Werner and Mckee and
their confederates and any others who may
have acquired. the same with notice OF the
wrongs and frauds aforesald, ana MAKE
Honors may deem just and appropriate.
THAT the right. claim and interest of
your OTdlOIS anu OlilcI 1lOidCl VI oLOCh II
the same case be protected and conserved
by such order as to your Honors may seem
just, equitable and appropriate, and that
the amount of said stock, either in the
hands of your orators or of others sim
ilarly deceived. be reduced to such amount
as to your Honors may seem right and that
certificates for such reduced amount be
issued to your orators and others in the
same case, if your Honors shall decide that
only a part of said stock should be cam
celed and annulled; and that such GER
tificates be compelled by such order as may
by your donors be deemed necessary and
effective.
and Of the capceliation thereof as your
Honors may adJudge, damages be allowed
to your orators in such sum as may to your
"That pending this litigation and the
complete determination of all rights of all
persons interested in said defendant cor
person to receive, hold, manage. use and
dispose of the property, plant and business
Of said defendant corporation under such
orders and directions as to your Honors
may seem expedient and appropriate.
THAT pending this litigation and the
complete determfnation of all rights of
the said defendant corporation, it's Of
fcers, attorneys, agents and employees
wheresoever they may be. be restrained
and enjoined from paying any sum or
bonds aforesaid, or any of them; and that
they also be restrained from making or rec
any of the stock of said corporation. And
may it please your Honors to grant unto
your orators and those in whose behalf
they sue. such further and other relief as
to your Honors may seem Just. eouita HE
and appropriate in the premises"
Er LeW p Wf R1IrSs AID 5ri R aawsi 7. 8 Smith,
attorneys for the plaintiffs.
Attributes 1t to the Hammer.
Abraham Arnold wants SIS. 900 for the loss