The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1898-08-04
FIGHT WAKES WARM
RIVALS ARE STILL CONTENDING
FOR THE SIEG PLANT.
ARE CITED FOR CONTEMPT.
Morgan g Wright Must Answer to Judge
Gibbons For Not Allowing the Receiver
to Take Charge-F1ght Transferred
to Raci g.

The trouble at the Chas. 81. Sieg
Manufacturing company goes merrily
on, and it is exceedingly difficult to
give any idea of the final outcome of
the affair. All the Chicago papers to-
day announce in glazing head lines
that the Morgan & Wright company
will be cited for contempt of court, for
taking possession of the works when
receiver had been appointed. These
reports are as humorous as they are
false. The Tribune has characteris-
tic one as follows: sl
90 AS result of a conAict.tor possession
of the big bicycle plant of the Charles
FL. Sieg manufacturing company at
Kenosha, Wis, Judge Gibbons last
evening issued an injunction restrain
ing Morgan & Wright from interfering
with the efforts of; the Security Title
and Trust company to hold the plant
as a receiver for the corporation. He
also cited the members of the firm of
Morgan & Wright, together with their
agents, and attorney Ambrose Worsely,
to appear before him on Aug. l, to
show cause why they should not be
punished for contempt oficourt.
The petition for injunction alleged
that a band of thugs" was in posses
sion of the plant and the company's
books and other valuable data, and
that they refused to surrender them to
a receiver. Morgan q Wright, the
petition alleged, wished to obtain the
custody of the books, fearing an exam
nation of the accounts would show
that the corporations Indebtedness to
them is much less than the amount
represented by their mortgages. 81
The receiver was appointed late on
Thursday evening by Judge Gibbons
On the application of attorney George
81. Peaks, representing the Shelby
Steel Tube company of Cleveland, on
claim for So ,581 debt. representatives.
of the receiver, who we're sent to take
charge Of the plant, found employees of
Morgan & Wright, who secured two
mortgages on the plant two weeks ago
to secure their claim of $40, 900, were
endeavCring to enter the factory. The
Kenosha police were called out to
maintain order. ~. ..
By force of superior numbers the
representatives of the receiver entered
the factory and posted notices on the
doors announcing that the Security
Title and Trust company was in pos
session. But their victory was only
temporary, for yesterday morning a
large force of men led by attorney
Cavanagh, representing Morgan &
Wright, battered downsthe rear doors
of the factory and drove out the re-
ceiver's agents. Then they tore down
the notices of possession, replacing
them with others and announced that
they intended to hold the property.
This led to the issuing of the restrain
in@ order.
The liabilities of the Sieg company
are estimated at 100000, with assets
in the neighborhood of that sum. The
principal stockholders are Charles 81
Sieg, William R. Walpole, Frank Sayre
Osborn and 81. G.. Pedrick. Bicycles
were the principal output of the plant,
which is valued at $780, 900 and is one
of the largest in the United States.
Attorney Cavanagh was seen this
morning and asked in regard to the
contempt proceedings, and he said that
they would have no effect whatever on
the claim his clients had made against
the plant. The fight will now be car
ried into this state, and Judge Fish is.
ruling on the question of the right of
the Morgan Il Wright company to
hold the plant this afternoon.
Should the judge decide that the
Morgan & Wright company cannot
legally hold the plant, it is hardly pos
sible that it will be turned over to the
receiver appointedsby Judge Gibbons,
but it will go into the United States
court. The great howl is now being
made by neutrality-suspicious., and they
seem determined to force the attorney
for the tire company to give up any
that he has gained. The
mortgage, according to statement of
one of the representatives of the re-
ceiver appointed in Chicago, would
have little chance of standing before a
United States court, and for this rea-
son the smaller creditors are very ;anx-
ious to get the case out Of the lower
courts. There has sbeen nc trouble at
the works today, and it is evident that
both sides have decided to leave the |
matter for the proper: legal solution.