The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-10-30
A LONG ANSWER
The Defendant on the Pocatello
Water Company Case.
HISTORY OF THE ACTION
James A. Murray Denies b Sensa-
tional Charges Brought Against
Him by p. d. Toms and
J. J. Cusick.

James A. Murray. defendant In the
Pocatello Water company case. In
which p. d. Toms and ]. j. Cusick are
plaintiffs, filed q long answer In the
district our yesterday. The answer
covers 20 typewriter pages and goes
extensively into the history of the wa
ter company Zeal and the sensational
matters growing out OF II. He denies
that h plaintiffs secured the fran
chise from the city OF Pocatello. and
claims that the franchise was granted
to him and the plaintiffs. 1t In ad-
mitted that a certain number of shares
of the capital stock OF the company
we're Issued to him as security for
moneys advanced and with the under
standing that when the defendant
should be fully repaid in principal n
interest, that the stock should be re-
turned to the plaintiffs. Mr.. Murray
denies that he refused to advance o
ey. in violation of an agreement, or re-
fused to carry out the terms OF his
contract. but admits that he requested
the resignation OF +. d.. Toms. but for
good and sufficient causes n for mis-
management and incapacity. The de-
fendant refused to advance any more
money until his demand for such resig-
nation was complied with. but denies
that he coerced the plaintiffs In any
manner The defendant says Ii Is true
that some of the contractors and men
employed on the works made threats
against the plaintiffs. but he denies that
he was in any manner connected there
with or responsible therefor. and denies
hat he made any OF the alleged state
ments or representations to the con-
tractors or laborers. Mr.. Murray de-
MES hat any shares Of stock were
turned over to him under durrss. but In
pursuance of certain- contracts. Tit
defendant says he has beer in full con-
troll Of the water company since Janu-
airy. 1898, and that all the proceeds of
the company were expended for the
benefit and purposes of the company.
The gross annual income. with the ex-
ception Of the last two years. has been
less than $1,000. while the advances
made by the defendant for the purpose
of building the water works. exclusive
Of interest, has been over 500, 900, and
I'm addition to that he has become liza
BILE to the amour of several thousand
dollars more for necessary material.
The defendants claim for money ad-
vanced IL over 500. 900. exclusive OF in
terest. over n above all income.
earnings and receipts. The plaintiffs
are not entitled to any portion Of the
stock of the company. Mr.. Murray
says he 10 ready and willing to render
an account, inc desires that one should
be taken. Further answering. the de-
PENDANT alleges that in October and
November. 1891, the plaintiffs made
certain water right locations near Po-
catello inc in December conveyed a
half interest to h defendant and they
associated themselves together for the
purpose Of obtaining a franchise from
the city of Pocatello for the purpose OF
furnishing the city with water. The
franchise was obtained in January. n
the Pocatello Water Works company
was organized by the plaintiffs and de-
PENDANT and the capital stock fixed at
500. 900. divided into 1000 shares.
Shares to the number of 2,444 Of the
face value Of S6l, 900, were subscribed
for. Toms taking 1900 shares and Cu-
sick two shares. In July the plaintiff
transferred all the property, water
rights and franchise to the company.
At thai time the defendant was the
owner OF a half interest in all the
property and the plaintiffs had never
paid anything for the stock subscribed
by them.
Mr.. Murray, In his answer, sets out a
copy of an agreement he had with the
plaintiffs, ~embodying the terms of the
agreement between himself and plain
tiffs concerning the advances of money
1 Ihddt ny nm otloit ela oANtA WV III
corporation OF the company. but the
agreement appears TO be signed only
by the defendant. At the time OF the
commencement of the suit, the defen-
dant had advanced over 800, 900. over
and above all receipts, revenues and
earnings OF the company. All the pro-
ceeds have been devoted to the run
ming expenses Of the company and i'm
provement of the plant. At the time
of the commencement of The suit the
defendant held 3,5251a shares Of stock,
of which 80 shares were treasury stock
bought from the company by the de-
PENDANT and cash paid therefor, and
22Iz shares were bought from persons
other than the plaintiffs. and one-half
the remainder. LIZA shares. had been
transferred to him in pursuance to the
contract he had with the plaintiffs.
and the plaintiffs never did have any
interest In any OF the shares mentioned.
except the LIZA. Mr.. Murray says that
upon the repayment 10 him Of his ad-
vances. with interest. n upon being
well and truly UNIDENTIFIED against any
liability as s~tockholder on account Of
the stock. he is ready and willing TO
transfer IL to the plaintiffs.
For a further and separate defense
Mr.. Murray alleges that nothing was
ever paid to the Pocatello Water com
pany on account of the stock subscribed
TO by the plaintiffs. or on account OF
the stock held by the defendant as Sc
curity for his advances. and the plain
tifs and defendant are liable to the
company under the laws Of Idaho for
the face value of the stock. subject to
any offsets they may have against the
company. The defendant only holds,
otherwise han in his own right, LIZA
shares, and the defendant is entitled 10
be Unidentified against such liability 10
the II Is necessary to deter
mine the amount OF such liability and
offsets and for that purpose the water
company In a party to the suit. The
plaintiffs are i~nsolvent. and the water
company is an Idaho corporation and
has no Office in Montana. and In not
doing business in this state. The de-
PENDANT therefore asks the court to di-
rect tina the water company be made
q mi fy ~ the suit