The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-27
telephones. for $4,000 in bonds and $4,000

telephones. for 100000 in bonds and $4,000
And IN his capacity as general manager
of the Best Telephone Manufacturing Com
pany he entered into a contract with his
own construction company TO supply the
telephones and switchboards needed in the
Baltimore plant, and to accept in payment
Company.
contract for the erection of the circuits,
etc, to the Eastern Electric Company of
baltimore, and this company was engaged
in carrying out its contract, when, in July.
1884, IL was compelled to place a mechanics
lien for S9,2i9 on all the property of the
Home Telephone Company in order to
cure payment Of its accounts. incidentally
1t may be mentioned that the creditors of
the Eastern Electric Company then applied
for receiver for that company ON claims
of about $1,000, and alleging that it was in
solvent,)
When the contract for the construction
work was entered into, the reputable Balt--
more directors secured the appointment or
Dr. Louis Duncan, president of the Amert-
can Institute of Electrical Engineers, and
a professor in Johns Hopkins University, to
serve as supervising electrical engineer.
During its progress. DR.. Duncan repeatedly
objected to and protested against the char
acter OF the construction, and frequently
reported to the directors how unsatisfac-
tory certain of the work was. Finally, the
directors demanded that the contract be
given to some other construction company.
Ih1s, Atkinson, as general manager of the
Home Telephone Company, as well as
director, refused to allow, claiming that
both work and materials were of fair char
acter.
In the meantime suspicion had been
awakened among the stockholders. and the
directors brought matters to an issue by
deposing Atkinson as general manager.
This not bringing about the desired results,
the directors abolished the office of general
manager and elected new secretary in At
kinSon'S place.
Then suit for damages was brought by
Atkinsons construction company against
the Home, Telephone Company, and Atkin--
secured the appointment of his clerk, Rus
sell, as receiver for the Home Telephone
Company: Then the directors of the
ately instituted proceedings in
Maryland court on the plea that
the suit instituted in the West Virginia
company, and succeeded in ousting Atl1in-
sons receiver, Russell, and having Messrs.
jr., appointed receivers for the Home Tele
phone Company, and also for Atkinson's
Home Telegraph and Telephone Company.
The first report of the receiver showed
that the Home Telephone Company owned
about .024 telephones; that the plant cost as
per ledger accounts, S99,S59.57; that there
was $7993O in cash on hand. and sundry
debts amounting to 9736.S9. At later
meeting Of the stockholders, the directors
debtedness S2,016.76 is due on account of
rentals for occupancy of city conduits, and
# not paid within sixty days the city an-
pany's cables: that even the interest on the
bonds issued could not be met; and that in
order to retain the present eight hundred
subscribers (the stock having been sold on
the understanding that there were 5,4O0 sub
scribers) it would be necessary to make
further large investments in order to give
subscribers the agreed number of connec-
tions. The report further stated that AN
embarrassing feature of the situation, and
one which. more than any other, stands in
the way of any plan to. raise. the necessary
money for the completion Of the property,
consists in the fact that W. j. Atkinson,
upon being removed from his position as
secretary and general manager, first denied
the right of the board to remove him, and
then absconded from the city, taking with
him the stock books, including the certifi-
cate book. This renders it difficult, II not
impossible to determine who are the stock
holders, or, at least, who are entitled to vote
as such. In the absence of the stock book
1t Is impossible to know how much stock
the treasury of the company"