The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1908-02-27
COURT PROCEEDINGS STARTED.


investigation into the affair of the de
funct Manitowoc County Cooperative
Company, have been instituted in an ac-
ton to which Adolph Wolff, stock.
holder of the concern, is the plaintiff,
demanding damages ''by reason of false
and fraudulent representations made
to induce him to purchase stock in the
company Four defendants are named
in the action which is brought under the
discovery statute, PERMITTING the plant
iff to examine the defendants for facts
alleged to lie within their knowledge
Schmitz & Groelle appearedfor Wolff in
service of the papers.
E. Nj. Carstens, former manager, Miss
Lizzie Carstens, his daughter, and book
keeper for the company, j. q. Lehm-
kuhl, one time secretary and said to
have been one of the original promoters
of the company and d. j. Healy, who
was in charge Of the company's affairs
after the store closed in November, are
named as the defendants to the action
which is brought by Wolff as an individ'
ual stockholder, it being impossible for
the corporation to act flor the reason
that it is elleged there was never an in
corporation,
Charges are made by the plaintiff to
the action that the books and papers
and the inventories of the Cooperative
Company are not complete and that it
has been impossible, from the records
which have been found, to learn any
thing of the operation of the company,
its funds and reason for its failure and
the discovery proceedings are started in
an effort to bring these matters to light,
1t is charged that stock was sold under
false representations as to the condition
of the concern and it's stocks and reve-
uues. and Wolff seeks to recover the
money be paid for certificates.
Seven specific demands are made by
the compliant-for inspection of the
original stock lists, Incorporation pa
pers; inspection of inventories OF stock
and the books showing the sales and
disposition of the stock, for reports on
the gross revenues and net earnings an
nually, dates of inventories and the
basis of selling the goods, the expenses
and disbursements; the amount OF
money collected by the said defendants
and puI posee t. whi,a devoted; report
of assests and liabilities Of the Coop.
Co. for the four years 1904 1907; an in
spection Of the inventory, the facts re
lative to the sale of the stock; for an
inspection of all bills, books, records
and accounts Of the alleged incorpora
ton. all of which the complaint charges
are in possession of the defendants or of
which they have personal knowledge.
J. G. Lehmkuhl, whose name is
brought prominently into affairs of the
oOp Company for the first time by the
action, was secretary Of tue company at
its start and is said to have been one of
the original promoters. Lehmkuhl, who
is a relative of Z. NJ Carstens, whose
management is attacked is directly
charged. with Carstens, with inducing
Wolff to purchase stock "by false and
fraudulent representations. d. j. Hea
ly is made a defendant for the purpose,
it appears, of having him make de-
tailed report Of his connection with the
management Of the concern after the
closing of the store. Healy disposed of
the stock to Brillion man for $4,000.
The Cooperative Company was or.
ganized il 1904 and failed last Novem-
Der. The first year the company de
cared dividend of s per cent 10 stock
holders but when the failure was an
nounced, it is said that the company
was from $40, 900 to $12, 600 in debt. An
effort was made to keep the company
out of the courts at the time of the fail
ure and in this move, d. j. Healy was
placed in charge with authority to close
up the affairs and an attempt was then
made to collect from the stockholders
to make up the deficit and clear the com
pany. 1t was this demand for levying
of an assessment that was met with op.
position and led to the action which has
been started, it is said.
Preliminary to the proceedings now
started, the committee in charge of the
investigation employed Harry Clark, of
Stevens Point, an expert accountant, to
make an examination of the books of
the concern aud his report is in the
hands of the attorneys for the plaintiff,
it is said, and will play an important
part in the case. se.-Manitowoc Daily Her
aid.