The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-06-12
WANTS A RECEIVER
APPOINTED FOR THE TRIBUNE
JOB PRINTING COMPANY.
Action Brought In the Federal Court
By Martha A. Rounds of Chicago
Allegation That P. H. Lannan
Wrongfully Diverts the Funds.

A suit asking for the appointment of
a receiver for the Tribune Job Printing
company was filed yesterday in the
office of the clerk of the federal court.
The plaintiff is Martha A. Rounds OF
Chicago, and the defendants are the
Tribune Job Printing company, Tri-
hume Printing & Publishing company,
P. H. Launan, c. c. Goodwin, w. w.
Rivers and Eugene P. Gaylord.
A receiver is demanded on the ground
that the earnings of the Tribune Job
Printing company, of which plaintiff is
a shareholder, are wrongfully and un-
lawfully diverted to the Tribune Print
ing & Publishing company by P. H.
Lannan, who controls both companies,
and thereby deprives plaintiff of divi-
dends that are rightfully earned on her
stock
1t is set out in the complaint that the
Tribune Job Printing company was or
ganized as a corporation on April %,
1891 for carrying on job printing, and
that p. H. Lannan, Q. G. Goodwin, w.
W. Rivers and Eugene p. Gaylord are
the trustees or directors; that on JAN
l. 1880, the Tribune Printing & Pub
fishing company was organized for the
purpose of printing the Tribune, and
lieves that the above named defend
ants are its trustees.
1t is alleged that the Tribune Job
Printing company was organized with
a capital stock of 1000, with the
shares at S1O0 each; that at the time
of the Incorporation, plaintiff put in
printing machinery to the value of
$4,000, and received in return 80
shares of stock of the value of
$4,000; that P. H. Lannan received 1913
shares; c. c. Goodwin, one share; the
balance being left as treasury stock;
that Lannan'S stock was fraudulently
issued, without consideration, to carry
out his fraudulent acts and conspiracy;
that none of the stock was paid for,
except by plaintiff 1t is alleged that
while the corporation has a board of
directors, p. n. Lannan controls them;
that it has been a one-man corpora
ton for years, and that Lannan is the
one man; that Goodwin is his special
friend, Gaylord his nephew. and both
under his control; that neither Gay
lord nor Rivers own any stock. 1t is
alleged that the net earnings of the
job department are sufficient to pay
dividends, but under Lannan none
have ever been paid or ever will be,
but the earnings have been fraudu-
lently diverted to his sole interest.
1t is set out that Lannan receives
5000 per month for rent for the base
ment, when he should receive only $50
1t is further stated that the Tribune
Printing & Publishing company claims
back rent from the Tribune Job Print
ing company to the amount of $7,4S5.40.
which, if paid, would be a fraud on
the rights of the stockholders, and
beneficial only 20 Lannan. 1t is
claimed that Lannan has been drawing
large sums of money in excess of law
full charges. paying Rivers too much.
Plaintiff AYERS that she demonstrated
with Lannan, and that he said that if
she interfered he would wind up the
corporation and that she would get
nothing.
At the annual meeting of directors,
April q, 1885, plaintiff offered a reso-
luton asking directors to bring ac-
ton against Lannan for extortionate
rent, salaries for bOOkbeepers, but that
no action was taken. Later, by letter,
she requested the manager to make an
examination of the overcharges and
sums unlawfully and illegally collected
from the job printing company, but
that an inspection of the books was re-
fused.
Plaintiff charges that defendants
have conspiTed to deprive her of her
interest in the Tribune Job Printing
through the instrumentality
of P. II. Lannan. in whose interest the
directors act; that Lannan owns all
the stock of the Tribune Printing &,
company except a few
shares in the hands of others. who are
his tools; that it is his purpose to di-
vert the funds of the Tribune job
company, and that if he is
not restrained he will bankrupt said
The plaintiff asks that a receiver be
appointed while the suit is pending:
that defendant be compelled to give
an account OF moneys unlawfully di-
and give a schedule of all
property and file it in the court The
court is asked to order an inspection
Of the books of both companies.
The plaintiff is represented by Shop
ard & Sanford and ]. L. Roote.