The Topeka state journal., 1900-12-26
tom J0HNSON's SUIT.
It Is Taken Under Amusement by the
Court.

New York, Dec 26.-Decision was re-
served by Justice Blanchard, in the su-
preme court today, in an action brought
by Tom l. johnson against R. T. Will
son & Co., bankers and brokers, for an
injunction restraining the defendants
from disposing of the stocks and secu-
rites of the Detroit street railway sys-
tenn pending the trial OF a suit for the
dissolution of an alleged partnership ex-
isting between johnson and r. L. Will
son & Co. Mr. Johnson also asks that
a receiver be. appointed for the railway.
The origin of the suit was the purchase
street railway system. after which Mr..
johnson became associated with them in
it's management.
r. r. Wilson & co. began the pur-
chase of the concern in the fan Of 1894,
and after they had succeeded in so do
ing they brought in Mr.. Johnson as an
associate in January 1885. He was to
have q one-fifth interest in the company
of all stocks purchased or to be pur-
chased by f. T. Wilson & Co, in con-
nection with the carrying out Of the
project for the consolidation Of all the
surface railways in and about Detroit.
Mr.. johnson was also to have charge or
the working of the different roads ac-
quired and was to act as the president
of the company at a salary OF $lO,OOO a
year. r. T. Wilson & Co. were to have
the nanagement of the financial affairs
of the corporation and were to form
such syndicates and outside arrange
ments with regard to the securities as
they deemed fft. The contract between
to terminals within three years If pos
sible. but did not so terminate, and was
extended from time to time until No
vember last.
The reason Of the failure to close the
agreement was the formation of new
company for the requirement OF the De-
troit Street railway system which was
known as the three cent fare cOmbina-
WI vr1 engineered v
Of Pack & Everftt, who secured a fran
chise on making a stipulation that they
would carry passengers for a three cent
fare and who succeeded in acquiring be-
tween so and so miles of streets under
that franchise.
The scheme of Pack & Everitt ser
iorsly interfered with the plans laid
down by r. T. Wilson & Co, and they
made a settlement with Pack & Everitt
in 1896, whereby Pack & Everitt agreed
to deposit 20 per cent of stock in the
three cent fare company and were to re-
ceive in return certain stocks in new
company to be organized under the laws
of Michigan. Pack & Everitt, however |
did not deposit the full amount of 20 per
cent of the stock in the three cent COM
pany and the question of the balance |
was made a basis of negotiations as was |
also the amount R. T. Wilson & Co. |
should pay for the stock already depos- /
tied. These negotiations continued until /
the middle of November last and on Mo- |
venber 24, an arrangement was made |
between r. T. Wilson & Co., and Pack /
& Everitt. Mr.. Johnson claims that ne |
on November II, orally gave notice that |
he wanted his share of the securities |
and that he would pay his one-ifth |
share of the outlay by Wilson & Co. in |
their purchase, the amount expended be- |
ing over $5.0O00 00O
r. T. Wilson & Co. deny that johnson |
gave any notice that he desired a dis |
solution of the alleged partnership prior |
to the making of the Pack e. Everitt |
agreement. They admit that, in the be-
ginning of December, he did give a |
written notice demanding that the part |
nership be dissolved.
Wilson & Co. paid $4,000 900 for the |
purchase of the roads acquired by them, /
but said that Johnson has not yet paid 4
his one-fifth of that sum and can not /
therefore claim the one-fifth Of the Sc
curities. Johnson's reply to this is that
he offered to pay it and was ready to |
do so at any time and that he is, there
fore, entitled to receive the one-fifth Of |
the stock contemplated on his agree
ment of 1895. The injunction asked for
by him calls for the restraining Of the
carrying out of the Pack q Everitt |
agreement settled on by Wilson '6t CO.,
as well as debarring the transfer Of the
securities held by the defendants
Justice Blanchard will not render his
decision until he has received briefs
from counsel on both sides on the law of
the case