The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-09-04
STR. FLYER IN COURT.
JOHN LEaRr WANTS A RECEIVER
FOR THE wELL-kxowy VESSEL
Charges That the Management OF the
Columbia River 4 Puget sound
transportation Company Ii u
Family AHafr-Ome~rs Accused of
Abstracffng Funds

A case that promises 90 % or. Of the
hardest fought legal battles Of the Pacific
Northwest was commenced Yesterday IN
the Federal court the title being John
Lszry rs. the Columbia River Puget
Sound Navsgztsoa Company. q corpor-
alton Z. s. Scott. L r. snsIeys e W
Crichton. s FL Brown. st.. and J. II.
Turney- In order 10 iocai1xs the chArac-
ter CT fhe defendant corporation and
those who ara rzmsd IL connection, IL
may Be stated that they compose the OPP
Grating department. o. the Seattle-Taco-
Ea1 steamer Flyer, oue Of the best known
steamers plying the waters Of Puget
scund. The document seating forth the
c. mpiairt IS one Of the most yosufninoas
ever filed In q local court 70 bring about
an adjustment Of the wrongs recited.
The complainant recstes his citizenship
and the organization and Incorporation %
the defendant company In February Ct
ISL. tn the state Of Oregon. the capital
stock of Bhich ws $50. 900, divided into
So shares Tie object of the incorpora-
ton was 70 engage IN the navigation Of
steamers on the Columbia and VILLAIN
cite rivers AMI their tributaries. Puget
sound. the Pacific ocean and all bays.
hsrbors. iniets and waters tributary 10
them; TO build. purchase and own water
craft and TO operate them Copies Of
these papers. the complaint says. were,
according 10 the laws Of Washington,
fled with the secretary Of state ar Olym-
pia- The capital stock OF the company
Was subscribed TO in the following pro-
portion; John Leary. 30 shares: 3. Peliy.
/ share: Z. b. Scott. 55is shares: l.. F..
Sselsy. S5is shares: l. B. Seeley. as tras-
tee 5Eiz shares, ~ shares and "a
81 ares; T. W. Criehton. .
shares: F. A. Seeley, u shares: z. W.
crichton. trustee. IL shares: C. r. Ber-
Eard. II shares; z. j. Hatch. 10 shares
T.. W. Crtchton. IL shares: total. as
shares The remaining I5s shares, tina
complaint recites later. were held as
treasury stock.
In iSS Mr.. Leary acquired by purchase
10 shares held by z. j. Hatch The re-
lationshiD of the other stockholders is
then taken up by the complaint and a
detailed account is entered INTO showing
Encouragement AMI extragagance b.
the operating officsts together with a
schedule Of the wages paid 10 themselves
Mr.. LeaFy then charges directly that a
scheme was entered into By the other
officers Of the company fof which he
" as vice pressdsn) to defraud and injure
him L. b. Scott. as president drew
SO per month; Z. W. Cricht0n. as se.re-
taTy and treasurer. drew So per month: :
{. r. Bernard. sl2S per month; L. p.
Seeley. general manager. $40 per month.
although nc such officer as that Of general
nanger was ever auth orized by directors
or stockholders. In justification of his
statement that there was an intention
10 defraud him Mr. Leary recites that
VIII Seeiey. ir.. a brother of L. b. and
4. A. Seeley. was employed during the
year 1891 as agent ar Seattle at a salary
OF SIS per month. while the compensa-
ton would have been sufficient at SIS. A
son Of L. p. Scott was also employed AT
so per month, while the service, Mr.
Ieary says Was not worth any salary at
all
These salaries were paid during the hard
times Incidental 10 the financial panic and
Mr.. Leary charges that the work Of L. B.
Scott. L. II. Seeiey and E. A. Seeiey
could all have been performed by one per
son. and a salary OF 500 per month would
have been liberal compensation. In order
that the high salaries might be maintained
Dir. Leary says that annual meetings were
not called nor were bylaws adopted but
that the respondents carried on the BUSH
ness and management Of the company as
they saw AZ.
The purchase of the steamer Bailey Cat
zert Of the complainant IS set forth and
the payment OF 500 co In paid up stock is
admitted. The steamer Telephone FOR
SEA go IS also stated and later that Of the
fryer for sI2oosa also by paid up stock.
The Fleetwood was also bought OF the
Olympia Steam Navigation Company for
81 90. The purchase OF the Flyer was
made as agreed. and the promissory notes
OF the parties referred 10 in the resolu-
ton which carried as IT. =. Scott & Co"
and ct. p. Scott and associates" were ex-
ecuted and delivered 70 the respondent
corporation. The notes were drawn Feb
ruary s. 1851. payable September /. 1871,
instead of "one day after date" The
amounts were as follows: Il. =. Scott.
g, 200: L. Il. Seeiey 81 500: L. y. Seeley,
trustee. 81 SEC: L. Il Seeley. trustee, 81 $50;
L r. Seeley. trustee. t750o; E. W. erich
ton Si5oo0. No note for the balance OF
s. so was made or delivered. The notes
drew 80 per cent. per snnum.
Nr Leary charges that with the same
intent TO defraud and without his knowi-
edge. the respondents Cancelled and deliv-
cred to themselves $40 co paid up stock
of the corporation without any payment
therefor into the treasury BY the non
payment % the note for $3.50 and by the
nou-payment Of the interest the corpora
ton vas cheated out OF Sleooo and the
complainant out OF mis- share OF that sum.
There are pages rcciting other irresu-
iarittes. ard the complaint then takes up
she sums OF money distracted" and
charged on the books o. she corporation as
over drafts" Amounts are credited as
follows:
E W Crichgon-Decem6er q. 1894
Sssi.si. December 81. lSss Ss3s 2. December
81 iS9 s. zssss
L. r. seelsy-pecenber y. 1885. sI.sie. =.
December 81 1874. s. -. s.. December 4
q - 49, -
Z SeeIey-December 81 ISsz $50: De-
cemher n ISs3 ts45 -. December e. 1856
Ss5a.i2; December 81. 1875. N.Isz0s: Decem-
hes 81. fssz, 81 sSs5i
e. r December II. 1913. sii5 =
Teect u3heT q. Bss4 $la2@s. December a. lsss.
S2sS a. December p. 1ses szB7f
Tpon these amounts marked over
crafts" those % whom they SIRE credited
charged themselves interest az "a per cent.
pr annun. C. r Donehoe. ore OF TIE
relatives couapla iuc8 az. IL also CHARGED
vista appropriations 20 hlS Own Use S2ss D.
and : ~ Turney s. Is said also abstract
81 from the comranv funds s9Ses r e.
SOFT the complain alleges took sf4s.7a
and " Mauxey sl7as5
Upon learning q These alleged wrongful
ae-s and doiaEs. Sir. Larry protested a.
divers and suD3ry times 3ur8rE Hses a.
Portland and elsewhere particularly az a
meeting q tHe board % directors Jaly ;
gSa ~ Portland
TacFe are some GEe lines drawn show
iug relationships aud connections - mar
rage. une fnztance being tAas % Taylor.
no Vas appointed purses OF IRE Flyer.
Taylor - q s9n-in-isw - J. II Turney
Turuey. sccorSirE % tire schedule. Is a.
present TIE poszessor q q % & share
of stock. The establishment % certain
pcints "a made - = statement tHst erich
ten hnd D0noho.s are hro1hers-lr-lavg
Bernard - = brofher-4n -taw OF L 3 ana
+. a. sesiey. TIE sad See3eys are hroth
eTs. ana T2ruey = relsted % The Seelsys.
TIE statements CT wronx1ogrx ara mis-