Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-05-18
Restraining 100000
Maine Coal Cooperation
From Issuing Preferred Stock
And Transferring Stocks.
Bill in Equity Brought by Other
Coal Companies.

Associate Justice Leslie c.. Cornish
Monday issued restraining order pro-
hiblting the Standard Coal Co., a $780,
900 corporation organized under the
laws of Maine, Jan. Is, 1909. and estab-
lished at Augusta, from the issue of
any preferred stock in said Standard
Coal Co, from voting or transferring to
any persons or corporations any stock
of the First Coal Co., and other plain
tiff corporations, organized under the
laws of Maine and established at Au
gusta. and from transferring to any
other person or persons any of the
stock in the Standard Coal Co.. held
by J. j. Tonkin, president and treas
urer of the Standard Coal Co. Judge
Cornish has also ordered a hearing in
the matter of a preliminary injunction
to y" held at the Court house at 'Au
gusta, Saturday, May 20, at 10 A. NJ.
At the same time of the organization
of the Standard Coal Co., 10 other cor
porations We're organized capitalized
at $4,000 each and bearing the names
FIRST Coal Co, Second Coal CO., Third
Coal Co, Fourth Coal Co., Fifth Coal
Co, Sixth Coal Co, Seventh Coal Co,
Eighth Coal Co., Ninth Coal Co. and
Tenth coal Co. The coal lands in which
the companies We're interested wee To-
Gated in the province of New Bruins
wick and it is claimed by the smaller
companies that the Standard Coal Co.
acquired certain shares of stock of the
other companies upon agreement that
the Standard Coal Co. would conduct
mining operations upon the areas con-
trnlled by the other companies and
that in case of violation of agreement
OF the Standard Coal Co. the shares III
question were to revert to the First
Coal Co. and the other plaintiff cor
| porations.
| The First Coal Co, ct ais, in a bill
| in equity against the Standard Coal
| Co., and against it's secretary and
| treasurer, j. j. Tonkin of New York
| City, filed in the kennebec county su-
preme court say:
First That the stock of said Stand
| ard Coal Co consists of 2000 shares of
| the par value of 500 each, of which
| 1000 shares are common stock and 1000
| shares preferred stock.
Second. That said J. J. Tonkin is the
| president and treasurer of said Stand
| ard Coal Co, and mas in his custody
| the unissued stock certificates thereof.
| Third. That none of the preferred
| stock of said standard Coal Co. has
| ever heen issued. nor has any issue
| thereof been authorized by said COM
| pany or by it's directors, nor has said
Tonkin or any other person the right
to issue or dispose Of any part of such
preferred stock without such author
ity.
Fourth That the plaintiffs are in
formed and believe, therefore allege
that said j. ]. Tonkin is about to sell
and dispose of said preferred stock in
the name of said Standard Coal Co.
and TO issue certificates of such pre-
ferred stock signed by himself as pres
ldent and treasurer. and purporting
upon their face to be genuine and au-
thorized certificates thereof.
Fifth. That on the 18th day of jan
uary. 1909, said First Coal Co, having
certain rights in lands in the province
OF New Brunswick. described in eli
cense to search" issued by the pro-
vincial government. thereof entered in
to an agreement with said Standard
Coal Co.
That on said 18th day of January,
1893, each of said other plaintiffs sever
ally entered into an agreement with
SAID Standard Coal Co, which was
ideEticaly the same except that each
related to certain other and different
areas of land of which said other com
panies scverally had control under sew
erll 'lccnSes to search" and that said
Standard Coal Co had not nor never
had any assets except it's rights under
said several contracts with each of the
plaintiffs.
Si>.t. That said J. j. Tonkin is the
owner Of 745 shares of the common
stock of said Standard Coal Co., and is
tic managing director thereof so far
as the carrying out of the provisions
Of the foregoing contracts are con-
ccrned.
Seventh. That said Tonkin immedi-
atnly after the execution of said con-
tracts. ahsented himself from the
United States for the space of four
months and has given no attention to
the business of said standard Coal co.
That said Standard Coal Co. has not
awaited itself of any of the rights and
privileges accorded to it under said
ure of said TOnkin to seasonably be
gin operations as managing director it
is now impossible that said Standard
Coal Co. should avail itself Of said
rights and privileges. as specified TN
any of said contracts, which each and
all on that day become null and void
according to the provisions thereof.
Eighth. That the plaintiffs are in
formed and believe that the majority
of the, stock of each of them held by
said standard Coal Co. as security UNI
der said contracts is likely to be voted
either by said Standard Coal Co. or
it's transferees, SO that the time of
performance of said contracts may be
extended or said contracts may be
otherwise modified to the detriment of
the plaintiff.
Ninth. That the stock in said Stand
ard Coal Co. held by said Tonkin as
aforesaid was issued to him with the
understanding that he should perform
without compensation certain valuable
services, relative to the property of
the plaintiffs. viz: that he should per-
sonally superintend and oversee On
cause to be properly performed the
several acts specified in said con-