The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-01-03
THE NEWS TO BE SOLD
JUDGE orMAsTER DECIDES IN FA-
VOR OF MAJOR RICHARDS.
Holds the Partnership Can Be Dis
sOived-AppeaI to Supreme
Court.

The suit of Major w. j. Richards, BUSH
ness manager of the indianapolis News,
against Charles r. Williams and Delavan
Smith for an accounting and dissolution Of
partnership, was on trial in Room ], Super
Tor Court, yesterday morning. The proceed
ings were brief and at the conclusion of the
evidence Judge McMaster said he would find
for the plaintiff Attorneys Charles W.
Smith, H. l. Hornbrook and Byron X.
Elliott appeared for the plaintiff. The de-
PENDANTS were represented by Ferdinand
Winter
Major Richards and Francis T. Holiday,
treasurer Of the News, were the only wit
nesses examined. Attorney Winter declined
to Introduce any testimony for the defend
ants. Major Richards testified as to the
terms of the partnership and his attorneys
sought to show by him what the News plant
was probably worth. Attorney Winter OBJ
jected to testimony on this point. The wit
ness was permitted to say, however, that
the plant was worth at least 100000. The
articles Of partnership which had been
signed by Major Richards, Charles r. Will
liams and the late William Henry Smith,
father Of Deavan Smith, were introduced,
showing the right of William Henry Smith
to devise his interest in the paper to his
son. The win of William Henry Smith was
read to the court. Under the will Delavan
Smith was made a residuary legatee and
succeeded to his fathers interest in the
newspaper property. The articles of agree
ment as read, provided that the partnership
should continue as long as it was mutually
agreeable TO each partner.
The testimony of Mr. Holiday was in re-
lation to Delavan Smith having succeeded
to his fathers place in the partnership At
torney Smith read the deposition of Delavan
Smith, taken by the attorney in Chicago.
1t contained testimony in reference to Mr..
Smith having succeeded to his fathers in
terest
The deposition brought out the fact that
when Major Richards decided to withdraw
from the copartnership and served notice
on Delavan Smith and Charles r. Williams,
several interviews took place between Smith
and Richards Delavan Smith proposed that
the partners bid against each other, and the
man Nelo would make the highest offer
should take the paper Major Richards de-
cllned to so into this sort of an arrange
ment contending that there should be
broader competition. Delavan Smith, ac-
Cordlng TO the deposition, urged that the
transfer OF the newspaper be made as quiet
~ as possible. He pointed out that people
had no idea of the real value of the prop
erty, and he deemed it best to keep the pub
lie In ignorance along this line. There was
a good deal Of discussion on this point at
the time. Something was also said about
the danger of persecution from the tax
authorities if the real value of the proper
" was known. 1t was also argued that
the employees of the News, once they real
lied how much money the paper was MAX
ing, might make it embarrassing for the
management by demanding an increase in
their salaries.
Judge McMaster in announcing his finding
held that the plaintiff was entitled to an ac-
counting nqTfnnTGhin Qnnld hn
dissolved. He directed the attorneys to draw
up an order providing for the sale of the
property to the highest bidder. Judge Nc
Master said that in the event the lawyers
were not able to agree on the order they
should proceed as far as possible with the
matter and ne would then complete it, At
torneys Smith and Winter following the
courts instructions, went to work on an
order of sale and had practically agreed on
the terms of the order when the question
arose as to how many days the notice an
nouncing the sale should be published At
torney Smith argued that a thirty days
notice would be sufficient, while Attor-
ney Winter demanded that a ninety DAYS
notice be given. In urging his point the at
torney pointed out that men would probably
come here from other cities to bid on the
property. The purchase would involve an in
yestment Of capital of from $4,000 to $780,
VJ and prospective purchasers would want
ample time in which to look over the assets
or the concern and see what there was to
buy. The attorneys were unable to agree
on this point and Mr.. Winter was COM
PEELED to go out of the city for day or
Two II was decided to let the matter rest
temporarily. Before leaving the courtroom
attorney Winter announced that in behalf of
his clients he would ask an appeal to the
Supreme Court from the Superior Court S
ruling.
II is now absolutely certain that the case
VIII 90 to the higher court and there is
some difference Of opinion among the attor-
neys interested as to when the News prop
erty viii be sold. There is a question as to
whether the filing of an appeal bond by the
defendants will serve as a supersedeas
against further action until the higher court
mas passed on the case. Judge Elliott ii is
reported, is of the opinion that this will not
interfere with the sale Of the paper Others
are doubtful is the sale can be brought about
until there IS decision in the Supreme
Court, which is not likely to come for sew