The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-25
Charges Against Yerkes, which Were
Made by Stockholders, Denied
by President knight.
MUCH EXCITEMENT AT BUTTE
EFFORT To SETTLE THE TROUBLE
THAT RESULTED IN SHUTDOWN.
oner by Unionists and Senator Clarke
to Purchase stock Held by Mac
Ginnfs and Reopen Mines.

CHICAGO. Oct A-The Lake-street Ele-
waited Railroad Company. capitalized at
s1o.oa0.oo0. was placed in the hands OF a
receiver this afternoon. in pursuance OF a
resolution passed by the board OF directors
asking for the appointment. The order was
entered in the Cook county Circuit Court
before Judge Tuthill. who appointed the
Equitable Trust Company receiver for all
the property OF the company. In the bill,
which was filed by James Bolton and Dan
iel T. Crilly. stockholders In the company,
IL Is alleged that the company Is hopelessly
insolvent, and that this condition has re-
suited from the reckless extravaganza and
fraudulent conduct OF Charles T. Yerkes
and his associates and the mismanag cement
OF Clarence A. Knight as his representa-
tive"
The compiainants further declare that
the purpose OF Mr.. Yerkes and his associ-
ates Is Ito wreck and destroy the said road.
with the view of acquiring the same at
sacrifice and thereby eliminating and cut
ting OF the rights of other stockholders"
Yerkes and his associates. 1t is averred.
control majority of the stock of the COM
pany, and have the power TO continue their
hold thereon through the election and re-
tention OF board OF directors subservient
TO their wishes
When seen tonight President Knight
ndiculed the charges made in the petition
FOR the receivership. II should not dignity
these charges with a serious answer, said
he. IF the court proceedings are based
on charges of mismanagement against the
officers OF the company, then the directors
who authorized the fling of the bill are
charging themselves with mismanagement
because they constitute majority of the
board and they approved all acts OF the
officers. There has been a threat of Iitiga-
tion for some time In order to attack the
lease made by the Lake-street company in
1894 TO the Union Loop Company. This
probably is behind the present proceedings.
The charges Of mismanagement were in all
probability made for the purpose OF giving
the court jurisdiction to appoint a re-
ceiver. The allegations about Charles T.
Yerkes's domination of affairs of this COM
pany arc also ridiculous. In 1901 Mr.. Yerkes
practically severed his connection with the
Lake-street company and a year ago he
sold his few remaining shares. He has
not now a dollars worth of interest in the
company, either in stock or bonds. In my
opinion there was not sufficient ground
shown for the appointment OF a receiver.
We certainly shall resist this proceeding.
though / do not know when the first step
viii be taken
The Lake-street Elevated Railroad Com
pany was Incorporated in 1892 with a capi-
tai of s1000o.000. The present officers are:
Clarence A. Knight. president; w. W. Mil
Ter. New York. vice president; W. Il. Griffin.
secretary and treasurer. The directors are
Clarence A. Knight. James G. Hutchins
W. w. Miller, c. 7. Page, ". w. Shaw
Henry c. Hackney. Alfred Kohn, Cory Z.
Robinson and James Bottom. The directors
who approved of the recevership, IL is
said, were Messrs. Robinson, Page, Shaw
Hackney, kohn and Bolton.