Omaha daily bee., 1899-11-29
NEW LINE TO LAKE MANAWA
Stockholders Of Old Motor Company
0rgapizs New Corporation,
TERMINUS TO BE At MANHATTAN BEACt
Capital stock of the Concern is to &c
Half n Million Dollars-Question
of Franchise Somewhat
in the Dark.

Articles of Incorporation OF the Lake Man
ava & Manhattan Beach Railroad company
were filed Tuesday evening In the office of
the county recorder The incorporators are;
j. H. Milard, Guy C. Barton, j. ]. Brown,
Omaha; NJ w. Wells, Schuyler, Neb; w.
s. Dimmock George f. Wright, Council
Bluffs. As all the incorporators are di-
rectors or officers of the Omaha G. Council
Bluffs Railway and Bridge company, it is
taken to mean that the new corporation is
formed for the purpose OF extending the line
OF the old street railway company to Lake
Manawa as officially announced by General
Manager Dimmock few days ago.
The capital stock of the new corporation
10 placed at 100000 in 5000 shares of 800
each. The corporate existence OF the com
pany began with the signing Of the articles
and is to last for fifty years unless sooner
dissolved or disincorporated by a three
fourths vote of the stock issued.
According to the articles on file, the bus
mess of the company is to build, construct,
purchase, own, maintain and operate rail-
roads, telegraph and telephone lines, organ
ze and operate express companies, build and
operate lake and pleasure resorts, with all
amusements incident thereto, to own and
operate boats on Lake Manawa, bath houses,
beaches, docks and landing places, to pro-
duce aud sell ice and sand therefrom and
elsewhere and to furnish electric light and
power, etc
The articles give the company the power
to lease, operate and further extend the
railroad property, rights and franchises of
any other railroad or railway corporation.
They provide that the terminus of one of the
railr je ;lu,, hioI, h.
authorized to construct, acquire or operate
shall be in the city of Council Bluffs and
running to Manhattan Beach, on the south
side of Lake Manawa.
Tho offices of the company are to be in
Council Bluffs. Tho following are the d.
rectore named: j. H. Millard, Guy c. Bar
ton, ]. ]. Brown, Omaha; N. W. Wells,
Schuyler; Charles T. Stewart, George +.
Wright, w. S. Dimmock, Couucil Bluffs
1t is understood that the Omaha Council
Bluffs & Suburban Railway company has
acquired all the property facing the lake
on the north side, and for this reason the old
company, If it intends to establish an amuse-
ment resort at the lake, must go to the
Manhattan Beach side.
Whether this new corporation will 20 be-
fore the people for franchise or attempt
to secure the additional right of way needed
from the city council under the franchise
which the old motor claims to hold is not
yet known.
Charges Fraud. tT4
In the petition filed by the Omaha &
Council Bluffs Railway and Bridge company
In the district court, in which it attacks the
validity of and asks that the franchise un-
der which the Omaha, Council Bluffs & Su-
burban Railway company is constructing its
inn hn 1nl
legation Is made that the ordinance was
obtained from the voters of the city of Coun-
Gil Bluffs by fraud and Misrepresentation,
for that, both by the terms and context of
the ordinance and its manner of presentation
to the public for its suffrages, 1t was un-
derstood and believed that the right to con-
struct and operate street railway on the
streets referred to In the ordinance was to
be granted to corporation and not to a
person or copartnership.
The allegation is made that the Council
Bluffs. Lake Manawa & East Omaha Con-
struction company was, at the time of the
submission of the ordinance to the voters of
this city simply copartnership, which it
has ever since been. 1t Is then shown
by section 5 of the ordinance that as a
consideration for the granting of the fran
chise 1t was expressly stipulated and agreed
that during the full term of the ordinance
in question the company or it's successors
or assigns, should establish and maintain
It's principal offices and place of buiness in
Council Bluffs, and that at least three OF
the members of it's directory and one-half
OF the general officers should be citizens
and residents of the city. This. it is claimed,
is evidence that the voters at the time OF
the submission of the ordinance to them for
their suffrages, understood that the ordi-
INn ,t,I
ana not to copartnership.
The members OF the alleged copartnership
are said to be Charles R. Hannah, Emmett
Tinley, J. A. Patton, j. P. Grenshields and
A. B. Delong.
Declares Franchise Null.
1t is also alleged as a ground for annul-
ling the franchise that it was granted upon
several conditions, one of which was that
the company should construct its line from
Broadway and Ninth street to the Missouri
river and have the same in operation for
the general public travel on or before Aug
ust |, 1898. This provision the petitioners
claim, was not complied with, and for that
reason alone, II not for others, makes the
franchise null and void.
Another ground for the attack on the va
ldity OF the franchise as claimed by the
old company, is that it provided that with
IN ninety days from the date OF the passage
OF the ordinance the grantees were required
to file with the city clerk a written selection
OF the streets upon which they expected to
construct their line, and that all streets
named in the ordinance not selected should
be deemed abandoned and all rights thereon
forfeited without any action OF the city coun-
ell In support OF its allegation that this
, provision OF the ordinance has not been COM
piled with the petitioners set up that the
company securing the franchise was never
! incorporated or organized and therefore
could not legally exercise any selection of
| any streets, and this being the case, no
streets have been selected as contemplated
/ in said ordinance. The petition recites
however that there is on file in the office
of the city clerk what 1t is alleged purports
/ to be a selection OF streets by the grantees
/ But the claim is made that this selection is
| merely a designation OF all the streets
named in the ordinance and said notice of
selection is signed by Emmett Tinley for the
grantees. This acceptance by Tinley is al
! legged to lack authority
! For these reasons and others II is claimed
| by the old company in its petition that the
new company has no right whatever to build
street railway in Council Bluffs.
No Room for Tracks.
| In its application for a restraining order
to prevent the new company from interfer-