The Norfolk weekly news-journal., 1909-04-30
J. koenIos,eln Wants His share.

ing title to the old sugar, factory and
tue 240 acres OF land upon which II
stands. A suit filed In the district
court at Madison by former Mayor
John Koenigstein is directed against
the Industrial company. The petition,
which was filed by Attorneys l. Powers
and Jack Koenlgsteln, asks that Mr..
Koenigsteln be awarded his proper.
Tomato share Of the sugar factory
property.
In reality Mr.. Koenigstein is seeking
by legal process to establish his right
TO share of the proceeds OF the sale
OF the sugar factory property amount
ing to 21a per cent Of the proceeds OF
the sale, that amount representing the
proportion between his contribution to
the sugar factory fund, $4,000, and the
total amount raised locally, 100000
is an Old Controversy.
An old controversy is represented in
the issues. What is really involved in
the present court dispute Is the
legality of the preferred stock issued
In the organization of the Industrial
company four years ago.
Basis Of the Dispute.
When the Norfolk Beet Sugar COM
pany. the preliminary company for the
American Beet Sugar company in this
territory, was organized in 1889, Nor
folk citizens agreed to subscribe $780,
900 as bonus Most of the amount
was paid by the 100 odd subscribers
and the balance was made up by the
guaranty committee, the members Of
the committee in addition TO their
original subscriptions making up the
several thousand dollars which was
needed to complete the fund.
After operating for fourteen years,
TIE American Beet Sugar company in
1906 moved its Norfolk machinery to
Colorado. A, that time the company
made proposals which resulted in the
organization of the Norfolk Industrial
company to represent the subscribers
to the bonus. The beet sugar COM
pany agreed to make over the Norfolk
property and buildings by deed to the
Industrial company the deed to be
placed in escrow in the Merchants Ma
tional bank in Omaha and a mortgage
to be executed In favor of the sugar
company to run for period of four
years guaranteeing the sugar company
against any suits which might be
file by subscribers to the bonus. This
agreement was entered into four years
ago next Sunday, but 1t Is stated that
the mortgage was not executed until
sometime in the summer, which makes
1t still in force.
The Norfolk men who organized the
Industrial company provided that the
members of the guaranty committee
should receive preferred stock to cover
their extra subscriptions and that com
mon stock in the company should be
issued to the other subscribers, the
holders of common stock to receive
nothing until the amount of subscrip,
tion by preferred stock be paid. The
property has since been under the con
troll of this company.
Not Satisfactory to All.
Subscribers to the bonus who did
not approve of the issuing of preferred
stock but who believed that all SHOULD
share alike, have for the most par
refused to take out common stock In
the Industrial company and from time
to time suit has been threatened.
Wants to Know Where He's At.
John Koenigstein asks the distric
court to ascertain what he now hat
coming on the $4,000 he subscribed
years ago. He asks that the proceeds
of the sale of buildings by the com
mittee be paid into court and that the
other property be ordered sold and tn,
proceeds distributed among the sub
scribers in the manner, which HI
claims was intended in the transfer
He charges In the district court tina
the organization of the Industrial com
pany was without the request, warran
or authority Of the parties to the sui
scription fund and was made withou
his knowledge
II has been claimed by some Of tn
bonus subscribers that under the pres
ent organization of the Industria
COMPANY, tne preierreu Stock Woui
probably eat up the entire proceeds @
the sale of the property.
Company viii Answer.
Just what would be the characte
of the courts decision in case tn
general legality of Koenigstein's col
tention should be sustained is not e,
actly known.
Light will be thrown on the cas-
when the Industrial company files a
answer to the suit, setting up the jul
tice of its organization.
The sugar factory has been empt
since the beet industry died in thi
section. 1t has been suggested r,
peatedly that the factory be turne
over to some new industry.