The Baraboo news. [volume] (Baraboo, Wis.) 1884-1911, 1908-07-01

ment of the Western Gas & Invests
ment Company was very expensive.
Some of the attorneys for the general
creditors claim that it amounted to
$50, 900 per year, but this is consider.
ably exaggerated. j. H. Brown, while
testifying in Chicago some time ago
stated the reason for the failure
of the Western Gas & Investment
Company, and incidentally of the
underlying companies, was due to
the fact that the discovery of
of natural gas at Zenia, Ohio,
meant practically a loss of an invest
ment of 100000 in the Zenia
plant and that by reason thereof, GER
tain creditors of the Western Gas &
Investment Company became alarmed
and through their acts, impaired the
credit of the Western Gas & Invest
ment Company. Mr.. Brown further
stated that if he had been permitted
to conduct the enterprise for one more
year without interference, that the
proposition would have worked out
successfully.
Manipulation of the Stock.
The facts with egard to the mani
pulationS of the stock of the different
underlying companies, is likewise in
teresting. After the plants had been
bonded as above indicated to an amount
in excess in many instances of their
| real value at the time the bonds were
issued, the stock was then pledged
and money in large sums was borrow
ed upon it. The plant of the Baraboo
Lighting Company was improved
quite extensively after passing under
the control of Brown and Mayer. Ac-
cording to the testimony of the en-
gineer who Installed the gas plant, it
involved an expenditure of $4,000.
In addition to this, there were other
repairs and improvements, which ac-
cording to the books of the Western
Gas & Investment Company aggre-
gated, with the purchase price, the
sum of $4,000. In other words, the
plant was bonded for 100000 and the
bonds were sold for $S5,OOO.and there
after the Western Gas & Investment
Company paid out for purchase price
and repairs, new construction, &C.,
$92, 900 or $1,000 more than they re-
ceived from the sale of the bonds.
The bonds were issued in denOmi-
nations of 81 900 and only two of these
81 900 have been redeemedl and the in
terest is due on all of them from June
1st. 1907. In March, 1907, j. II.
Brown as an officer of the Baraboo
Lighting Company, made a judgment
note which he signed as officer of the
Baraboo Lighting Company, which
note is payable to the Western Gas &
Investment Company and the judg-
ment was entered on this note, exc.
cution issued and returned unsatistied
and thereafter the Western Gas u
Investment Company began the pro-
ceedings to sequestrate the stock of
the BarabOo Lighting Company and
to subject the property of Baraboo
Lighting Company toI the payment of
it's judgment. B. HI. Strong was ap.
pointed r eceiver. Notice was given
to the creditors of the Baraboo Light
ing CompanytO present their claims
aggreating between six and seven
Thousand dollars were filed before
November st, 1907. In August, 1907,
the bondhOlders, whose bonds were
secured by trust deeds of the property
of the Baraboo Lighting Company,
commenced an action to foreclose on
the bonds in the circuit court for Sauk
County and soon after that the Miss
ouri Fire Brick Company filed lien
against the property of the Baraboo
Lighting Company for new gas bench
which it had installed and suit was
brought to foreclose on the lien. In
January, 1908, all of the actions were
consolidated and the case was placed
on the April, 1908, calendar of the cir
cult court for Sauk County. Some
dispositions have been taken in Chicago
and Baraboo. The court has appointed
Emerson Ella, an attorney residing in
Madison, as referee to state the ac-
count and it is thought it will take
several days to try the case. B. II.
Strong, the receiver, is represented by
Olin & Butler of Madison, Wisconsin.
Leslie A. Needham and III. J. Toner
ppear for the assignee of the $4,000
judgment. Wood & Oakley and Gro.
tophorst, Evans g. Thomas appear for
bondholders. Russell B. Harrison, of
Indianapolis, Ind, H. F. Williams, Of
Chicago and Bentley & Kelly of this
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