The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-05-04
ANSWER ~MAKESCHARGES
ANOTHER STEP IN THE SHERIDAN
BRICK WORKS LITIGATION.
Answer Filed to Complaint of Marion
Trust Company-News OF
the Courts.

a rather sensational answer was filed in
Judge Leathers's court yesterday to the
complaint OF the Marion Trust Company,
administrator of the estate OF the late
Mason j. Osgood, against the Sheridan
brick works for the appointment of a re-
ceiver and the collection Of notes aggre-
eating $4,000. Mason j. Osgood was pro-
prietor of the company and secured notes
for il TO the amount for which the adminis-
traitor sues. according 10 the allegations in
the complaint. He owned 29 shares of the
total 500 shares of stock. valued at $4,000
al the time of the organization of the COM
pany.
The answer filed yesterday is sworn to by
Oliver II. Root, secretary-treasurer of the
firm. He says hat as president of the
company OsgOod assumed the financial
management of the concern and the stock
holders intrusted their interests in his care,
and that he (ROoD superintendent the man
agement Of the brick works at Brazil and
Sheridan. 1t is charged in the answer that
Osgood fraudulently and without the con-
sent or knowledge of the board of directors
of the firm incurred obligations amounting
10 $2S.000 for unnecessary improvements and
machinery. 1t is alleged that he advanced
his own money with interest To procure
notes from the company at a high rate of
interest so that the company would be I'M
able to pay the notes on demand and thus
freeze out the other stockholders and be-
come sole owner of the stock.
1t is charged that Osgood fraudulently
represented that he would give the COM
pany time TO pay the notes out of the earn
ings of the concern or until the plants were
bonded in a sufficient sum TO pay them.
IL is charged that by fraudulent representa-
ton he instructed the secretary to issue
instruments so that the transaction would
appear regularly on the books, without the
consent or authority of the board of direc-
tors, and that he fraudulently designed
and prepared the instruments so that they
would all fall due at one time. that he
might more effectually carry out his al
legged scheme to ruin the corporation for his
own individual benefit and gain. 1t IS
averred that OsgOod knew that the notes
could not be paid at one time on demand
without utter ruin to the corporation ard
other stockholders, and that he was 1nan-
ciaily able to protect his own interests,
while the others were not.
1t is charged that he betrayed his trust
by fraudulently scheming TO ruin the cor
poration by securing the signatures to the
instrument sued on.
The last paragraph of the answer is in
the nature of a set-off to the claims of the
Marion Trust Company. 1t alleges that
OsgoOd was indebted TO the firm TO the
amount of S12. 900 for unpaid assessments on
pany made an assessment of so per cenS.
on the face value of the stock. and that he
only paid $1l 900 on his share, which
amounted to 5000.
Judge Leathers appointed Charles A.
receiver of the company, and
the company now has an appeal from this
appointment pending In the Supreme Court.
The appeal affects the matter of a receiv-
validity of the notes and their collection
rests with the Superior Court.