Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-03-06
CASE
Decision in Suit Involving the
Interstate Investment and
Developm mt Company
is FLOYD COUNTY CONCERN
Stockholders, However. Are Located
Not Only in Northern Iowa. But in
Minnesota and Wisconsin-Contract
Entered Into With New York Com
pany Was Cause of Suit.
special &c Times Republican.

Mason City. March 6.'rhe defend
ants In the celebrated case involving
the future of the Interstate Invest
ment and Development Company, of
Floyd county. the stockholders of
which COMPANY are located in all
parts of northern Iowst, in Minnesota
ing TO a eiiling made by Judge Reed.
of the FEDERAL court at Dubuque The
defendants are held in judgments of
$4,000 and the costs of the case. The
action Was brought by Thomas Frog
gait. ct al. of Wisconsin. representing
the stockholders of the company
against the officers and directors of the
company. 1t is alleged the transfer of
the company'S stock to the Radio COM
thority. and Judge Reed has decided
to that effect The opinion handed
down by the court this week. is in
part as follows:
That he various payments made
and authorized To be made by the de-
PENDANTS. q. w. NonBerg. c. H. Morris,
c. +. Sheldon, and +. T.. Hirsch. as
directors of the corporation. from the
funds of the Interstate Development
and Investment company, for the So
called charter of the Radio company.
and all expenses connected with the
procuring of the same. We're wholly
unauthorized. beyond the rghtfltl pow
cr or authority of the board of di-
rectors of the Interstate Investment
and Development company and its
stockholders. and said named defend
ants are liable. Jointly and severaly
The history of the company has
been most interesting one because
of the large number of prominent men
over the northwest interested in ii.
The company was organized at
Charles City several years ago, to
develop a piece of ground in the west
end of the county. containing cement
products, and including some fine
species of marble used in building.
Two years ago. the officers. among
whom were said to be Mr.. Hirsch.
president of Charles City college, Mr..
Sheldon, retired methodist minister,
Mr.. NonBerg, dentist, and Mr. Nor
ris, clerk. entered into contract with
New York corporation organized
under the laws of the District of Col
umbia, to transfer the property to New
York.
1t is alleged that this contract was
entered into with the New York COM
pany by the directors of the Floyd
county corporation without the knowl-
edge and consent of the stockholders.
The new company was capitalized at
$10000000. Later the stockholders in
this part Of the country became dis
satisfied, and notified the directors to
get back the property, which was done,
the New York company deciding back
the real estate, but in the meantime
had received $4,000 from the Iowa
company, which it is alleged was not
returned
The action was brought by th1
stockholders to compel the New York
company to transfer back the stock,
and repay the money alleged to have
been paid by the directors H. t.
Lockwood an attorney, is also direc-
tor, and the judgment against him is
for $1,000. The court ordered a new
election called, after annulling the
election of last June.