Los Angeles herald., 1908-05-12
LOWE SEEKING HEAVY
DAMAGES AND BONDS
SUES PEOPLES GAS AND COKE
COMPANY
Affiliated Corporations and Members
of Directorate Involved In liti-
cation Started In the Su.
perior Court

More troubles between 4. S. C. Lowe,
the Peoples Gas and Coke company
and Its affiliated corporations and
members of the directorate came to
light in the superior court yesterday.
l.. p. Lowe in one suit demanded from
the Peoples Gas and Coke company
the return to himself of $1,000,000 in
bonds of the corporation and $4,000 in
money.
In another suit filed by the same
plaintiff against G. II. Hayes and r. S.
Heaton the plaintiff demands the re-
turn to him of 1000 shares of the stock
of the Los Angeles Safe Deposit and
Trust company or 100000 in money.
the claim being that the stock has
been delivered in consideration of
promissory note in favor of the plain
tiff which never has been forthcoming.
In the first complaint l.. p. Lowe
sets forth that on February is, 1907.
the Peoples Gas and Coke company
issued to T. S. C. Love- as trustee,
40, 993 shares of stock, being all but
seven of the shares of the company.
the other seven being Issued, one each,
to seven directors. At that time. it is
claimed, T. S. c. Lowe controlled the
entire capital stock of the Lowe Man.
ufacturing company and of the Los
Angeles Safe Deposit and Trust Co.
according to the complaint, delivered to
G. H. Hayes an offer as follows: If he
would take 1000 shares of the Los
Angeles Safe Deposit and Trust COM
pany and pay 100000 into the treas
ury, Lowe would take 1000 shares and
pay $500, 900 in 30-year per cent bonds
of the Peoples Gas and Coke COM
pany; that in addition Lowe would give
to r. S. Heaton and w. N. Goodwin
1Ah h. .rtxr
Hayes 5000 shares, or one-tenth of the
capital stock of the Peoples Gas and
Coke company subject to a pool agree
ment, giving $500 shares each to Hea-
ton and Goodwin on the same agree
ment.
According to this agreement the $780,
900 paid in by Hayes was 10 be used
in purchasing bonds of the Peoples
Gas and Coke company at so cents on
the dollar, the money to be retained
by the trust company and to be used
only I'm extending the plant of the gas
company and in liquidating its indebt-
edness. estimated at that time at $780,
900. Hayes also was to have an option
on 81, 800 shares of the capital stock
of the gas company, which. with what
he already had, would have given him
81 per cent, or a controlling interest
This offer, according to the COM
plant, was accepted Dy Hayes FeDru-
airy IS. 1907, who paid 1900 on account.
The Lowe Gas Construction company
was Incorporated February rs. 1907,
and made an agreement with the gas
company to construct the plant here.
Under the terms of this agreement
the gas company was to assume
bonded Indebtedness of 100000, of
which $4,000 900 in bonds was to be
sold and the proceeds used for the
construction of the plant, the pur-
chase of pipe and the laying of mains.
The remaining s1,000,000 in bonds and
49, 993 shares of stock were to be turned
over to Lowe as trustee to obtain the
plant then owned by the gas company
and to get the necessary license. A
triple agreement is said to have been
made by the three corporations to the
effect that the Lowe Gas Construction
company was to succeed r. S. c. Lowe
as trustee.
Now, it is claimed. the necessary
license was obtained and turned over
to the gas company, but the gas COM
pany refuses to turn over the 100000
in bonds, so that construction work
has been made impossible. Hayes got
$175, 900 worth of stock at so cents. The
plaintiff declares that profit of $1S9.500
could have been earned on construction
work and sues for that amount and for
the ST. 000 900 in bonds.