The Topeka state journal., 1902-11-19
He STOPSIT.
Attorney General GODDARD Inter-
rupts a Great Scheme.
Koen Lake Company, of Great
Bend, the Object.
ASKS FOR A RECEIVER.
Concern About to Be Turned
Over to StiIwell.
How 1t Was to Be Financed by
Owners.
ASKS FOR A RECEIVER.

Attorney General GODDARD returned
this morning from Great Bend, where
he went yesterday to make an applica-
ton in the district court of Barton
county for the appointment OF a re-
ceiver for the kOen Lake & irrigation
company, the concern which has Deen
trying to make a lake out of the Chey-
enne Bottoms in the central part OF
Barton county.
1t is claimed that the Koen company
ig about to transfer its holdings to
company engineered by A. E. Stilwell
of Kansas City, of Orient railway fame,
but that it has not complied with the
provisions of the state corporation law
and it is made the duty OF the attorney
general TO bring an action asking Tor a
receivership TO wind up the affairs of
any such corporation.
Last Saturday Great Bend parties
who are creditors of the Koen company
and who believe the transfer to the
Stilwell company will defraud them out
of their claims. appeared before the
state charter board and showed that the
Koen company had moved its offices out
of the state. had failed to file its an
nual report with the secretary of state
within the time specified by the law
and was about to dispose of it's pro-
perty In accordance with this showing
Mr. GODDARD went to Great Bend, ap-
piled for the appointment of a receiver
and secured a restraining order to pre-
vent the Koen company from selling or
mortgaging its property. The hearing
on the application for receiver was
continued until next Wednesday,.
Talk about your NAPOLEON of nm
ance!' said Mr.. GODDARD today. TINS
scheme beats anything in the line OF
financiering that have ever run across
1.-THE Koen company was capitalized
for 5000, 900. It has expended and had
work done to the amount of about $780,
600, but about $4,000 of this is not paid
for. It has issued bonds for $4,000 but
they have not been sold
1.-THE company condemned a lot OF
land down there for it's lake, and in the
damage suits which followed some par
ties in Great Bend signed the appeal
bonds with the understanding that the
$2O 900 bonds and the stock should be
put up as security, but they haven
been able to get hold of either bonds
or stock. No specified sum is named in
the appeal bonds, but it is probable that
the damages and costs will amount to
about $4,000.
Now the company proposes to issue
$500 900 additional bonds and mortgage
the property to a new corporation which
has been formed under the laws of Del
aware under the name of the Lake StN-
well Irrigation company. This company
has no paid-up capital, but it, in turn
proposes to issue $500, 900 in bonds. $780,
600 Of per cent. preferreds stock, and
81, 600 in common stock. OF this $345.-
600 in bonds. similar amount OF pre-
ferred stock. and S690,000 Of common
stock. it is asserted Is to be placed with
the United States and Mexican Trust
company, another Stilwell corporation
for sale. The trust company, it is
stated, is to get Is per cent of the bonds
for selling the balance, and whatever
stock is not used in aiding the sale OF
the bonds
THE trust company agrees to loan the
Lake Stilwell company not over $50, 900,
on its notes payable in one year, secured
by trust deed. The trust company can
foreclose this loan by giving notice to
the StilweI company in writing and it
can sell all the securities.
THAT is about the plan as represented
by the Great Bend creditors of the Koen
company. and they think they are to be
left to pay the appeal bonds If il is car
ried through. That is what they are
trying to avoid by throwing the Koen
company into the hands of a receiver
and restraining it from placing a mort
gage on its property"