The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-11-08
. o o Q o Q Q . o Q Q 0 Q o . o Q
CASE
UNDER ARGUMENT
Defendants in Railway Suit
Deny Jurisdiction of
Federal Court

Arguments are being made in the
United States eircuii court this after
noon before Federal Judge j II
Cotteral ON the receiversnip applica-
ton of the IeNully Construction
company against the Altus. Roswell
and El Paso Railroad company,
whica is engaged in constructing a
road from Altus In southwesterly
direction to lei Paso, having now
completed the road past the Okla.
homa state line. The plaintiffs are
represented by c. c. Hornor and
the defendants by Devereaux and
Ilildreth
The defendants today filed their
answer TO the suit filed last Thurs
day by the McCuly company aud
deny all Of the allegations. They
deny the allegation that $2,000,000 Of
tie capital stock of the company had
been ISSUED in violation of law; that
Edward Kennedy president Of the
road. had kept the stock In his own
name The defendants maintain that
the plaintiffs have no authority to
apply for a receiver, that being ncith-
or stockholders or hondhodcrs they
have no lawful lien upon the capital
stock of the company and the Fed
era court has no jurisdiction over
The cause for the reason that the
Federal court has no authority 20 in
teiiere in fcccivorship case when
the parties have a remedy at law IL
the state courts
The defendants deny the allegations
that the affairs of the company are
being grossly mismanaged; that the
same party, on the same allegations
fled similar suit in the Sixteenth
judicial district and that after a full
hearing on the matter District Judge
Johnson dismissed the proceedings.
refusing to appoint a receiver
The defendants deny the allega-
lions of the plaintiffs that Kennedy
has exclusive control OF the manage
ment OF The company and the allie
cation that he aud his company are
unable to continue the construction
work for the reason of having ex.
lausted their funds.
The defendants reclte that they
have expended s3S,244 In construct.
ing the road from Altus 10 the Texas
line in excess of the $4,000 secured
in bonuses; that since the plaintiffs
filed the original suit against the
company $2.192 has been paid them
under their contract. that since the
filing Of the suit in the Federal court
1881 3g has been paid them and that
a balance OF 1856. which they allege
is all that Is due under The plaintiffs
contract has been rendered and re-
fused They contend that their La
bilities are but $23.523 81 and their
assets $41 ,439 SO, claiming that they
are perfectly solvent aud able TO pay
all just claims.
When the case was called for trial
Attorney Hornor, representing the
plaintiffs asked for continuance OF
ten days stating that Edward Ken
nedy. promoter Of the road, had
agreed 10 satisfy his clients within
week that they were financially
able to complete the work
This action was opposed by the de-
PENDANTS who charged that the Me.
Culley company are trying TO wreck
the railroad company and that they
would soon do so If permitted to
drag the matter through the courts
They urged that the matter be tried
at once In ordw that they might
continue the construction work aud
complete negotiations under way TO
finance the building Of the road
II was also charged by President
Kennedy that the construction com
pany had been sending copies OF ex.
tracts Of TIE record of the receiver
ship suits filed against the company
to Chicago and other eastern cap.
iiallsls TO prevent mem from inanc.
ing the road
Continued on Page Five