Omaha daily bee., 1908-06-20
SUIT AGAINST NEW ROAD
Stakeholder Wants Receiver for
0maha-H Hastings Line.
ATTACKS OFFICERS OF CONCERN
They Are Voting Themselves
salaries, Expense Money and Conn
mission and Not building
Railroad.

Suit for an accounting Of and a re-
celver for the Omaha & Nebraska Central
railway. a concern which has enlisted the
aid OF a large pumber Of small investors
in the building OF an electric line from
Omaha TO Hastings, was filed in district
court Friday afternoon by John w. Eye
one OF the stockholders. The petition,
which was prepared by Henry G. Meyers,
Eyes attorney, asserts the company is
really insolvent and that any increase ir
the Indebtedness Of the company may be a
valid claim against the stockholders to
the amount of the unpaid portion Of their
capital stock subscriptions.
The officers of the ompany are ar
raigned in drastic terms in the bill, and
they are charged with voting themselves
large sums of money for salary ard ex-
penses, and disappearing the true con-
dition of the company. Some of these al
legged misrepresentation statements are
quoted in the petition from advertisement
published by the company in local news
papers. 1t is asserted one advertisement
Is so worded as to leave the impression
that an income of 500 a year can be Sc
cured from an investment of $3.50. The
offering of gold watches as premiums TO
purchasers of stock is also cited. 1t Is
claimed tina instead Of having franchises
in all the towns and right-of-way the en-
tire length of the line, 1t really has only
one franchise and four miles of right-of-
way.
The petition further says the officers
have collected by sale of stock about
$4,000, and have actually expended for the
purchase Of property. right-of-way. grad
ing, and so forth, about 5000, leaving a
balance of $4,000 the plaintiff wants &C
counted for. e
Vote Themselves Salaries.
1t is also charged officers have been
voting themselves salaries Of $50 a month
and large sums for expenses, and that this
course leaves very small balances of cash
in the hands Of the treasurer. The petit
toner, 1t is asserted, has been denied the
right to examine the books Of the com
psny. II also alleges the officers have
voted themselves 500 shares each OF the
capital stock for which the company re-
ceived no consideration.
The petition attacks the financial state
ment of the company, which represents its
assets to be $175, $780, and it's liabilities to
be s5,56O.l2. 1t asserts the item of $225,OOO,
the amount Of its capital stock outstand-
ing, was wilfully omitted, and If this is in
cluded it will show the company to be in
solvent.
It is also asserted that certain of the Of
flcers went to Polk county and represented
to farmers that they had executed a deed
of trust for $5,56s, 900 on its alleged 1853 miles
of right-of-way and that the money was
to be expended in equipment and right-of-
way. BY reason of these representations II
is asserted a number of farmers invested
about $11,OOO in the company. 1t is also
charged by reason of failure to construct
and operate the road the franchises and
risht-of-way have been forfeited. The off,
GERS are also charged with voting them
selves commissions of 10 per cent on the
bonds which were voted 1 nthe various pre-
cincts of several counties.
One instance is cited in which the officers
in an advertisement referred to the New
York g. Chicago Air Line as a similar con-
Germ, the stock of which formerly sold at
SIS and is now worth $50. The petition states
the officers knew this Air Line company
was in the hands of a receiver and its
stock practically valueless.
The plaintiff asks for an accounting to
show the receipts and in what manner the
money has been expended; for the appoint
ment of a receiver to take charge of the
property and for an injunction to prevent
further sales of stock or collecting money
on unpaid stock subscriptions.