The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-04-03
EAST HELENA sMELTER
IT'S PRETTY HOT STUFF


0Dectal D1Spatch TO the Stanoaru.
Helena. April a-Another highly inter-
esting and sensational law suit has been
bogun in Montana. The plaintiff is
Frank Lyman. a wealthy resident of New
York city. The defendants are the Hell
ena and Livingston Smelling and Reduc-
ttoa Livingston Coke and Coal
Samuel T. Hauser. Anton NJ.
Hotter, Albert J. seligman and Henry nj.
Parchen.
The plaintiff filed q bill Of complaint in
equity with Judge Knowles of the United
States circuit court on Friday night. and
the papers were served on the defendants
Saturday afternoon. Mr.. Lyman repre-
SCENTS lo.ooo shares Of the preferred stock
Of the Helena and Livingston Smelling
and Reduction company. There are 300
~ shares OF preferred stock in all. and
90. 600 shares of common stock. The
company owns and operates the East
Helena smelter.
The complaint sets up that the company
has been earning Si6f.0o n year since July.
lDa, and that IL has paid only three divi-
dende of 5 per cent on the preferred stock
In the history of the company. II is al
legged upon Information and belief that
the said samue, T. Hauser. the said An
ton M. Hotter. Albert J. Seligman and
Henry NJ. Parchen. while such trustees
Of said Helena and Livingston Smelling
and Reduction company. and while the
said Samuel T.. Hauser was president
thereof. as aforesaid, they and each of
them. disregarding their aforesaid legal
duty, and in violation thereof, conspired
and combined with each other. and with
other persons then being trustees of said
company, to injure and defraud your or
ator and others. stockholders of said COM
pany. by diverting the money. property
and assets Of said company from Its law
full and proper use and that of its stock
holders. and by using and employing the
same for the personal benefit and ad-
vantage of themselves or of some of
them"
The company in May. 1890. Endorsed
bonds to the amount of S25o.000. issued TO
the Livingston Coke and Coal company.
with a guarantee of seven per cent inter-
est. which In alleged to have been a wrong
and improper act. committed without the
knowledge or consent of any OF the stock
holders except those directly interested
I'm securing such Endorsement. II Is al
legged that. ''since the making of said
guarantee as aforesaid of said bonds and
the issue and sale thereof, the said Liv-
ingston Coke and Coal company has been
and remained wholly insolvent and unable
TO pay the interest on said bonds or any
part thereof. or to create the sinking fund
for the redemption of said bonds. and has
not paid said interest or any part thereof
accruing on said bonds, and has not pro-
vided said sinking fund or any part there
Of. and that the said Samuel r. Hauser.
Anton M. Hotter. Albert j. Selieman and
Henry NJ. Parchen. as trustees and OFF,
GERS of the Helena and Livingston Smelt-
ing and Reduction company. have appro-
priated and applied the funds. moneys
and assets of said company to the pay
ment OF said interest and the creating of
said sinking fund under the guarantee
aforesaid. and have appropriated and APP
piled on account OF the payment OF said
interest not less than the sum of SIG. 600.
and have appropriated and applied TO the
creation of said sinking fund n large
amount. the precise amount of which Is
unknown to your orator. but which upon
Information and belief he charges TO be
not less han Ss0.o0."
As another cause of complaint. Il is al
legged that Messrs. Hauser. Hotter. Selig-
man and Parchen. without the knowledge
or consent of the other stockholders.
loaned of the company's money $50. 600 to
the Helena Water and Electric Power
company. hat they erected or caused to
be erected I'm the name on behalf of the
said Helena and Livingston Smelling and
Reduction company large and expensive
works or electric power plant at or near
Jefferson. In the state OF Montana. and
paid or caused to be paid for the same
out OF the funds. money and assets of
said company a large amount to-wit. the
sum Of not less than sl20. 900: that such
works or power plant were not adapted to
nor intended for the proper use OF said
company" and that they were erected
solely for the purpose of making tho
Peck Montana company "remunerative
and profitable TO them or some of them.
profit. benefit and advantage therefrom.'
proht, benefit and advantage therefrom.
Further IL is charged that the defend
ant gentlemen are now spending $50. 600
In erecting reduction works near East
Helena that are not adapted to the COM
pany's needs: that they deposited with
or loaned to the First National bank OF
Helena seoo.ooo of the company's money.
and that they knew at the time such loan
or deposit was made that the bank was
insolvent: that they wrongfully mort