The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-03
MANIPULATION ALLEGED
CENTRAL STEEL COMPASY's PETi-
TIoN FOR a RECEIVER.
The Condition of Affairs Considerably
CompIicated-High Court Cases
. other Court Matters.

The Central Steel Company yesterday
morning filed suit against the Indiana
Steel Company to cancel sale of fifty
thousand dollars worth of stock and an
injunction to prevent a board of direc-
tors now in control of the Indiana Steel
Company from transacting business and
electing a new board in an alleged fraudu-
lent manner.
The Indiana Steel Company was original
~ organized in 1891, with a capital stock of
100000 divided into shares of $50 each.
The Premier Steel Company subscribed
for 1900 sares of the stock, representing
over $500 and 1000 shares were taken by
others, leaving 1000 shares of the face value
of $4,000 in control Of the company to be
used as a reserve or assets. The Indiana
Steel Company retained a lease on a part
of the plant. Under these conditions bust
ness was done at the plant until 1898, when
Ii was decided to suspend operations and
pay off the indebtedness. AL but the assets
were disposed OF and donations of the
stockholders We're used in liquidating these
debts. 1t is alleged that in 1896 the Indiana
Steel Company made an effort to retain its
lease as assets and sublet the lease to the
American Wire Nail Company and the
American Tin-plate Company, which COM
panies sublet ii to the American Steel
Company. On Jan. IA, 1887, the American
Steel Company surrendered the lease to the
Indiana Steel Company, which repaid the
donations of the stockholders. but no effort
was made to use the lease.
THE SHARES SOLD.
On Jan. 10, 1899. it is averred that John
z. McGettigan. receiver of the plant, sold
the three thousand shares in the Indiana
Steel Company owned by the Premier Steel
Company to William j. Carin, who, it is
stated, made the purchase for William S.
Kann and Joseph r. Paul Through them
the property came into the possession Of
the Central Steel Company.
The stock owned by the Premier Steel
Company was represented by five direc-
tors of the Indiana Steel Company, who
resigned upon the representation that they
were no longer stockholders. and a new
board was appointed after their resigna-
tfCEs had been accepted that represented
minor interest in the Indiana Steel Com
pany.
1t is alleged that by a continuance to
perpetuate the control of the Indiana Steel
Company over the plant for private pur-
poses the annual meeting of the stockhoid-
ers was postponed, and that the defendant
issued the one thousand shares of remain
ing stock to confederates so that the hold
could vote for directors. 1t is al
legged that at meeting held Jan. %, 1900,
the bylaws We're amended, changing the
Gay of the annual meeting of the stockhold-
ers from the second Wednesday in March
To the first Wednesday following the first
day of January. 1t is asserted that the
one thousand shares of stock representing
$4,000 on its face value was sold to William
G.. WATSON for S., 500 over the protest OF
Carlin, Kann and Paul, stockholders rep
resenting the Central Steel Company.
WHY ORDER is ASKED.
The restraining order and injunction are
asked for to prevent the reelection of
the present board of directors by the as
sistance of it's alleged confederates at the
meeting which was set for Jan. q 1901, ac-
cording to the amendment to the bylaws,
thus perpetuating the power of the board.
1t is also averred that a notice of the
amendment to the bylaws should have
been mailed to each of the members of
the board ten days prior to the meeting,
but 1t was not done, and the board ex-
ceeded it's authority in making such amend
ment
1t is further alleged that the Indiana
Steel Company has abandoned the purpose
for which 1t was organized, that 1t has not
and cannot, because of the lack of finances.
the sale OF the 1000 shares divesting the de-
PENDANT company of assets, and that the
lease is lost.
The court is asked to set aside the sale
and to appoint a receiver to take charge
of the assets and distribute them according
to the direction OF the court.