The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-11-13
USED TREASURY
FOR OWN PURSE?
w. Johannes Demands AC-
counting and ReceiverShip for
Green Mountain Co.
STOCK HAS DISAPPEARED
Declares Samuel McGraw and William
o. Meagher Have Issued Certificates
and Kept the Money.

Charging collision, misrepresenta-
ton and misconduct i'm the amairs Of
the Green Mountain Gold & Copper
Mining company. W Johannes yes
terday filed suit in the district court
asking that the company be placed in
the hands of receiver. Samuel Nc
Graw, president and general man
ager: Jennie NJ. Meagher, vice presi-
dent and treasurer and William o.
Meagher. "a director OF the company,
are named as defendants
The company was Incorporated, the
complaint recites. for 100000. in 81
shares, OF which go, OO0 shares were
subscribed. and the remaining 100000
shares held by MeGraw as trustee.
The subscribed stock was distributed
as follows. McGraw. 246, 900 shares;
w j. Meagher Edward Dolan;
Charles Shields and Alma NJ. McGraw,
!, 600 shares each.
A stipulation in the articles OF in
corporation, the complaint alleges
provided that the stock held by the
trustees was 10 be applied 10 the fur
therance of the purposes Of the or
ganization and the development Of
the company but this provision has
been violated by McGraw, and that
without authority or consideration he
has transferred 100000 shares OF this
trastee stock 10 Elizabeth and Mar
garet McGraW, relatives OF the presi-
dent and general manager. The
iplaintif further SAYS the officers and
directors OF the company are related,
and that McGraw procured the trans
fer Of the stock through his control
'Oyer the directorate.
stock OVerissued.
II Is also alleged that other stock,
as evidenced by certificate No. 9, has
been wrongfully issued, without record
10 show the amount, to whom or the
consideration.
That the president Of the company
has created an Overissue OF stock by
selling approximately 10000 shares
OF stock additional TO other persons
AT "A price of 25 cents share, on
terms OF payment OF One-half cent a
month is also alleged. The plaintin
believes that on this deal McGraw has
collected an average OF 9 cents a
share. Johannes also believes that
still another block Of stock, amount
ing 10 81 1000. has been sold in a like
manner By McGraw. There is no
treasury stock TO perform the cOndi-
tons of these sales made by McGraw,
IL is averred. ana now the persons who
purchased such stock are refusing to
make further payment and are de-
manding the return of the money paid
by them. For this reason. the plain
Tin alleges, the company is threatened
with a multiplicity OF suits and IS in
imminent danger OF insolvency.
Funds Have Disappeared.
The plaintiff alleges that McGraw
had agreed 10 charge no commission
on any sales of the stock he might
make, but that this agreement has not
been fulfilled. With McGraw and W
j. Meagher the only directors present
at meeting. 1t is asserted. McGraw
secured the adoption OF a resolution
apprOpriating 10 per cent of the total
purchase price of the stock sold by
him as 81 commission for his work.
This commission amounted 10 $3.50.
That the funds OF the company
have disappeared, and that W. j.
Meagher and Jennie Meagher, former
and present treasurer Of the company,
respectively. have failed to account
for them. is a further charge made by
THE plaintiff. OF S10.269.SO received
into the treasury S7,S12.62 has been
distributed. leaving $2,4571S unac-
lc0uuted Tor, according 10 the COM
iplaint. Johannes also charges in his
complaint that the MeagheTs have re-
'ceived $1,000 OF the cOmpany's funds
Mine Closed Down.
In his final charge Johannes SAYS
that McGraW has refused 10 require
the treasurer TO provide a bond for
the performance Of the duties OF the
office. and that from the inception Of
1.-THE company the business has been
conducted entirely and solely for the
benefit OF McGraw, instead Of the
stockholders. Both mines and offices
of the company have been closed
down, 1t is further alleged
In applying for the receiver the
plaintiff also asks that the resolution
appropriating the commission money
10 McGraw be rescinded. McGraw re-
quired 10 account for 25OOOO shares
OF the capital stock OF the company.
the 100 or $50 persons holding this
stock called in and the stock can
celled and money accounting rem
dered
Johannes is the holder Of SOC shares
Of the stock Of the company
HfKTHS