Omaha daily bee., 1905-05-04
PROMINENT MEN IN SUIT
Variety Of Business Interests Involved in
Old Gas Engine Case.
STOCKHOLDERS ARE BEING SUED
Judgment Creditors Ask for the
Payment of Claims Amount
ing to Six or Seven
Thousand Dollars.

suit is now on trial in Judge Sears
court which shows anew that human ma
ture Is ever trusting even when money is
involved. 1t is a suit against the stock
holders of the old Omaha Gas Engine COM
pany by judgment creditors holding claims
amounting to between 5000 and $1,000.
Among the prominent people in the list of
of stockholders defending Dr. Walter
o. Henry, DIR. +. w Cook of Plattsmouth,
Charles A. Tracy. cigar dealer; Frank A.
Brownlee, secretary of the Board of Fire
and Police Commissioners; Gustave Ander-
son, United States commissioner; Squires
& Smith and John L. McCague, the latter
holding one or two shares, understood to
have been taken for rent.
In 1899 there was organized in Omaha the
company named above. with a capital stock
of 100000 The organizers were H. X.
Clover, who claims to have a patent i'm
proved gas engine; Otto Gugler, II. c.
Akin, Dalton Rlsley and DR.. Frank e.
Coulter.
The company gave all Of the capital stock
TO Glover for his patents. Then in order
to get money for operating expenses, the
stock was increased to S150,000 and the ex-
ira amount put in the treasury for sale,
with Samuel Mckee authorized agent.
This is where a few more Omaha men got
into the good thing About this time Will
liam o. Pratt. w. c. Gem and Mckee
conceived the idea that they ought to get
control of the company and be the whole
thing themselves. At least, this is the
allegation of the litigants now in court.
Akin Thrown over Transom.
Mckee, having the handling of the stock
that was for sale, with his friends called a
meeting for the night preceding the annual
meeting of the company. 1t was averred
that at this meeting enough stock was is
sued to friends of the man named to give
him control, and that on the following
night they ousted the old officers. throwing
President Akin bodily out of the meeting.
They also had to depose DR. Coulter, among
others. This was on January 2, 1900, and 1t
is alleged this is the date when 100 shares
of stock were issued to Gunnar A. Lindquest,
forty-five shares to Squires & Smith, and
various blocks of shares to others. A
new board was elected, and Pratt Mckee
and Gem were in the saddle.
Interested parties did not like the looks of
things as they were framed up at this point
and undertook to get look in. Attorney
Lysle 1. Abbott acting for the Paxton &
Vierling Iron company, sued out an at
tachment for $500 on the plant, located at
Twenty-eighth and Sahler streets, and this
botts suit was filed May 10, 1900, and on
the oath of the same month DR.. Coulter
asked for the appointment of a receiver.
Judge Dickinson granted the application
and named as receiver his bailiff, Edward s.
Stout
When the receiver went to take possess
sion he found, as alleged, that much of the
valuable machinery and tools had been spir-
tied away or disappeared. 1t is further
alleged that the custodian was taken out
at night for several nights and treated,
while the looting of the plant going
on. Writs of replevin failed to turn up
much of value. and Attorney Abbotts ell
ents only got about s25 worth of stuff. At
the showdown the assets of the company
amounted to a little over $500, while the
judgments have piled up to the extent of
nearly $1,000 AS the plant put in
derstood to have cost several thousand dol
lars, the creditors were very angry, as well
as surprised.
Claim of Defendants.
SUIT was brought against the 'stockhoid-
ers, and 1t is this action Judge Sears is now
engaged in hearing. Defendants, of whom
there are half dozen besides those named,
set up that they never subscribed for any
stock; that IL they did subscribe they paid
for the same and. lastly, that as some of
the judgment creditors also stock
holders, they should be compelled to stand
their share of any amount that may be
found due.
On tho stand Wednesday morning Com
missioner Anderson admitted that he had
put 5000 into the concern DR.. Coulter
feels that 1t was because of his name on
the list of officers that several other men
bought stock, and, taken all around. the
case Is quite notable. The lawyers repre-
senting the discordant interests comprise
half dozen or more of the best at the
local bar.