The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-13
HANGING FOR MR.. M'KEE
JUDGE BAKER SIZES THE PUNISH
MENT TO FIT HIS ALLEGED CRIME.
Further Argument on the Complaint
of Rottenuess I'm the Citizens street.
Railroad TanaEcment.

pany. so said Judge Baker yesterday morn
ing. IL would be no injustice to hang Mr..
Mckee. one OF the two principal manipuIa-
tors Of the company.
The remark was made by Judge Baker
during the continuance of the argument
before him of the case mentioned and oc-
casioned quite a little commotion among
the lawyers. Attorney Winter was on his
feet in an instant replying hotly that it
had been a long time since men were
hanged for such things. whereupon Judge
Baker said:
II confess that with these Napoleonic
systems of highway robbery i have no
sympathy. These fellows will go on until
finally they will induce the people of this
country TO lynch them"
Mr.. Winter protested warmly against
the making of such remarks by the court,
newspapers and were being used in the
Legislature for the purpose of wiping out
the Street-car Company Judge Raker
suggested that good way 10 avoid the
natural revulsion of any right-thinking
mans moral instincts would be. instead II
demurring and fighting on technicalities 10
withdraw the demurTers and take issue.
Mr.. Winter replied that he had always
tried TO find an issue and state the facts.
but submitted that the representatives or
the Strect-car Company ought not to be
subjected TO reflections of this kind and
that the court had no right to try ques-
tons of morals.
At this stage Judge Baker told Mr.. Win
allowed TO continue the broken trend of
his argument.
Mr.. Wallace submitted as his first propo-
sition in his argument yesterday that the
taking of a certificate Of stock for shares
creates a liability on the implied contract
to pay to the company whatever may re-
main unpaid of the original subscription
of such shares. and that when IN innocent
purchaser buys such shares in open MAJ
ket. the fact constitutes a defense 10 n
suit to enforce the stockholders liability.
He argued that the purchaser should have
standing in a court of equity 20 render
available his defense TO an action.
Judge Baker interrupted Mr.. Wallace 70
bona fide purchasers Of 200 shares If STOCK
at or before the time the fraudulent COM
bination is alleged to have been made, he
could not see how Stockholder might
bring suit by reason of injury directly In
fiicted upon him by such action. He said
the trouble which lies at the Threshold OF
the suit Is that the wrongs had been con-
summated before the complainants became
the owners of the stock and that the
II IS possible for one who cofes in as an
innocent purchaser after thevSvrongs have
occurred. 10 maintain the bin on the same
footing though he were stakeholder
at the time the frauds were perpetrated.
INNOCENT PURCHASERS LIABILITY.
Mr.. Wallace said his clients assumed they
were in position to question the transac-
tons. Judge Baker replied that the as
sumption that the purchasers of stock
under the given circumstances would be
liable to be sued and made to pay full face
value would, If true. advance the argument
considerably. MIR. Miller INTERRUPTED. say
ing that man is never bound to go into
court 10 get what would be conceded to
him by request
Mr.. Wallace continued his argument,
saying he was not arguing that Church &
Co. are liable to the Citizens Company,
hat that they may be to its creditors. Re-
ferring to a remark of the court that the
Legislature had conferred upon the street
ynfl ffDr1 hn tn lr1Rr
It's stock TO any amount, he said: That
law was passed six weeks before this great
Judge Baker replied that doubtless the
law was passed for that purpose and then
proceeded TO cons rue some parts of Mr.:
Winters argument. Mr.. Winter held that
the innocence of the purchaser protected
him when the wrongful donees have thrown
stock on the market Applying this to the
case in hand. Judge Baker explained how
Il few directors inspired by the devil.
have issued S35oo.OO0 of ''vaporized stock"
induced the public to buy ii at perhaps ten
times its value. and II is said now against
the sucker who swallowed the bait, that
the honest creditors of the corporation
have no redress.
THE CORRUPT COMBINATION.
In reply to a remark of Mr.. Winters that
the corporation had contracted floating
debt since the issuance of these stocks.
whereupon Judge Baker went still deeper
into the question. Said he:
1.-The question is, do they, by virtue of
becoming stockholders of the corpora
resentatives, however. of stock that is cor
rupt become liable TO the creditors? | am
ot at a &C. and dhde 6hey OF f
combination to put them In statu quo or
demand of IL to cancel their stock: 1 think
If they could be made liable at all by rea-
son of negligence that they need the aid
of somebody else 10 get them out OF the
ENHANCEMENT other than the corrupt COM
Lination that got them into it,
Mr.. Wallace explained that where stock
IS increased as this in question was. all
the stock IS subject TO the same condi-
lions. Judge Baker said the only difference
be could see between the original subscrip-
that the original snbscribers are comnelled
TO pay the face value of their stock.
Mr.. Miller thought there were circum-
creased and no wrong done TO stockhold-
ers or any body else. and explained an i'm
aginary case OF a corporation worth So
and determines to issue AO00.000 more stock
and give IL to the men who own the orig
inal stock Judge Baker thought this simply
another way of dividing undiSturbed profits
and that IL did not help the argument j
bit. Then came the remarks to which Mr.
Winter took exception. Said Judge Baker:
There was a corrupt combination 10 Is
sue three and a half million more to dis
tribute as gift The question is whether
the good faith purchasers of this corrupt
issue are liable To creditors and may be
never received a cent for this stock wish
II were the law that every man who bought
dollar of stock were held TO the condi-
ton of the fellow into whose shoes he had
stepped So far as Mckee is concerned, il
the truth IS set up here in this bill. ii
would be injustice to him TO hang him.
When Mr.. Winter had taken his seat at
the command of the court Mr.. Wallace
was allowed to resume. He continued his
argument in the afternoon.
The Afternoon Argument.
Mr. Wallace resumed his argument dur
ing the afternoon. He said that at the time
OF the reorganization of the Citizens
Street-railroad Company in 1898. when
Messrs Werner and Mckee assumed control
OF 1t. the tangible property worth
s1,5O0.Oo0. Now il is worth less than 81 600 900.
The corporate property. including the fran
chise. he estimated at s2Oo0. coo, making
total actual valuation OF less than So 00O. 900
TO support s5.G00.0OO of stock and 81 OOO. 900
of bonds. The company. he declared. was
hopelessly insolvent.
Judge Baker-But il is not a question of
the eompanys sOlvency or Insolvency. 1t
seems TO me that all that has been said
about pending legislation and about the
propriety OF legislative action touching the
street-railroad situation has been said with