The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-07-05
N 'COLLOUCH IN
ANSWER TO REID
Complains of Conspiracy in n
dianapoIis Star ReCeiv-
ership.
RECEIVER Is NOT NEEDED.
STATED THAT THE CAPITAL CITY
JOURNAL HAS AND WILL BE
ABLE TO CARE FOR ITSELF
CHARGES BITTER.

Indianapolis, Ind, July "A peti-
ton has been filed in the Federal
Court by George NJ. McCulloch, ask
ing for leave to file an answer and
defend for and in behalf of the Star
Publishing Company in the case of
Daniel G. Reid against the Star Pub
fishing Company and others. No ac-
tion has been taken by the court on
the petition. With the petition as an
exhibit, is the answer that McCulloch
seeks to file. NIB mbmmmmmmmbb
asks leave to file.
The petition sets forth that McCul-
loch is the owner and holder of SAL
600 of the preferred capital stock of
the Star Publishing Company, whose
total capital stock amounts to $5000O0
preferred and 100000 common 1t is
alleged in the petition that Reid owns
and holds S399,7O0 of the common
stock of the company, and controls it's
officers and directors, and, pursuant
to a combination and conspiracy" be-
tween Reid and the president of the
company, the answer of the company
was filed on the day when the bill of
complaint was filed. It further is set
forth that the answer admitted the
bill and consented to the appointment
of a receiver as asked in the bill of
complaint.
Charge of colluson.
The petitioner asserts that he be-
exists in favor of the publishing
! that Reid alleges to be represented by
a note he holds, and also against the
prayer of Reid for a receiver. The
petition alleges that "by reason of the
collusion and combination between the
complainant and the president of the
said company and of the control ex
ercised by the complainant over the
directors and officers of said com
pany" an appeal to or demand on the
board of directors of the company to
make a defense to the suit would be
futile or would result in the interpo
sition of sham, insincere and in eff
ficient defense" 1t further is set
! forth that the petitioner, who holds
none of the common stock of the
! company, is not entitled to vote al
I the meetings of the stockholders and
! is without ability to compel any cor
porate action. He asks that he be
made a party defendant and that he
have leave to file and maintain an an
swer for and in behalf of the Stal
Publishing Company and to defend the
=. bill for it.
! Msmanaeement Is Alleged.
1t is alleged that the present cOndi
ton of the Star Publishing Company
has been briught about by the com
| plainant and the directors and officers
of the company, acting by his pro
curement and pursuant to his instruc
tions. 1t further is alleged in the an
swer that the company is not and a
no time was insolvent, but has at al
times had assets exceeding in value
the amount of its Indebtedness, anC
with honest and faithful and ordinari
! " competent management is and a
all times would have been able tC
carry and provide for the payment o
all its Indebtedness so that none
should remain unpaid after becoming
due and payable. 1t is alleged tha
no reason for winding up the business
or for the appointment of a receiver
other than the mismanagement anC
misconduct of its officers, does nov
exist or at any time existed.