The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-02-09
BUTTE News.
A DIVERSION OF FUNDS
5
Alleged Against the Head of r.
Kinds g. Company.
:.
a RECEIVERSHIP ASKED
{
The Noted Firm OF Paving Contractors
in Trouble = Ryan Brings Suit
: Against Dugan for Dissolu-
v ton Of Partnership.

: The membership and inside workings
of the noted firm of R. Kinds & Co.,
paving contractors, were divulged
{ by sensational suit for a disco
luton of partnership, the appoint
ment of receiver an injunction
and accounting, brought in the district
court yesterday by James Ryan against
T.. o. Dugan and Thomas r. Kinds.
Mr.. Dugan. who appears to be general
manager of the company, Is accused of
having diverted, or appropriated to his
own use, over $4,000 of the firms money.
= In the complaint Ryan says that on
the LIST of July, 1897. he entered into
partnership with the defendants for
the purpose of carrying on a general
contracting business in Butte and else
where in the state, and since then they
have carried on the business and have
taken contracts from the city of Butte
and other municipalities in the state.
Ryan says he has had much reason to
be dissatisfied with the conduct of Du-
gan, because in violation of an express
agreement that he would not draw any
checks to bearer, but would draw all
checks, for the disbursements of
moneys on account of the dealings of
the company, to the order of the per-
sons entitled thereto, he has kept the
books and accounts of the copartner-
snip in such condition that it is inn
possible to ascertain therefrom any ac-
curate account of the dealings of the
partnership The accounts are unbal-
anced and no accurate understanding
of the condition of the affairs of the
partnership can be learned from the
pretended books. Ryan says he has
taken the books and examined them
and found from their appearance that
Dugan, without the plaintiffs knowl-
edge or consent, has overpaid in excess
Of the amount owing and due one Ben
Hager the sum of $7,440, and therein
plaintiff alleges that Dugan has been
guilty of deceit, concealment, misrepre-
Sentation and serious misconduct as to
the plaintiff. The money SO paid out to
Hager has not been paid with refer
ence to anything connected with or con-
corning the affairs of the partnership.
Ryan says he is informed and believes
has! converted to-Ilis own
use, and for that purpose has kept an
inaccurate and false account, moneys
Of the partnership, over and above all
his interest or the amount to which he
was eHllllsu,= tHe sum OF 5l,UUU. 1t is
further alleged that Dugan has paid out
of the partnership moneys to one Tel
ford the sum of $3.50 over and above the
sum to which Telford was entitled, and
was paid without Ryan's knowledge or
consent and in deceit, concealment and
misrepresentation. Upon learning of
Dugan's Indebtedness to the partner
ship and of the fraudulent payments
made to Hager and Telford, the plain
tiff demanded a restitution and ac-
counting from Dugan and a return of
the money SO, paid out and taken by the
misconduct of the defendant Dugan,
but the latter refused and neglected so
ITO do, and still refuses to comply with
the demand. 1t is alleged that he
threatens to continue to collect and con-
vert to his own use and benefit other
funds and moneys of the copartnership
and will do so unless restrained by the
court. Though requested to do SO,
Thomas r. Kinds has refused to join
the plaintiff in bringing the suit. and
on the contrary has approved of the
acts of Dugan in diverting the funds of
the partnership from their proper chan
mel, and for that reason Kinds is made
party defendant. Ryan, therefore,
asks that the copartnership be dis
solved, that a receiver be appointed
with the usual powers, that an account
be taken Of all the partnership dealings
and transactions and the moneys re-
ceived by the plaintiff and defendants
in relation thereto, that the defendants
money, property and effects of the CO.
partnership, and that the property of
the firm be sold and the partnership