The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-09-25
CHARGES A RAILROAD FRAUD
MOVE To SET ASIDE CHARTER
OF e. 4 %. or INDIANA.
state Attacks Cooperation mat TOOk
Over the chicago, Cincinnati and
Louisville $40. OOO. OOP Mortgage
said TO SHOW Company Vas . Blind.

LooASsPoRr. Ind. sept - Prayer
for court action 20 dissolve the recently
formed organization know a. the Chesa
peaks and Ohio Railroad Company nf
Indiana was contained in a complaint
filed in the Cass Circuit Court here to-day
before Judge John = Lacey 10y the state
on the relation Of George A Custer. prose
cutting attorney. The papers In the action
were drawn in the once 81 Attorneys
John p Lamb and John T. Beasley 81
Terre Haute. With the assistance 90 Burt
New. legal clerk 10 Gov. Marshall. who
instituted the suit
Dissolution Of the organization Ia asked
on the grounds that IL was formed for
fraudulent purposes and that IL obtained
a certificate Of Incorporation from the
Secretary Of state on false representation
as 20 ts purposes. The defendants IN
the action are tho railroad company.
James S'eSart Mackie. Carl Remin gton.
Gilbert Cannon. John Calvin. Frank NJ.
Whitaker. Henry c. Starr. 4. l. Lewis.
Thornton lewis and J Paul Stevens.
These men are officials or employees
81 the Chesapeake and Ohio Railroad
Company, with headquarters at Rich
action brought by the state vas the
tilIng by the Chesapeake and Ohio Rail
road company II Indiana on September
5 Of mortgage Of s4O.0O.UO in favor
81 the Mercantile Trust Company of New
York. covering all the property alleged
Ia he held by the company. hut which
IL actually held, IL IL averred m the COM
plant. by the ChesA peake and OHIO
Railroad Company. a foreign corpora
ton. IL IA held that since the Chesapeake
and Ohio company 81 Indiana WAS formed
for fraudulent purposes the acton in
mortgaging the prope rty II illegal Copies
Of the mortgage were simultaneously
fled IN Franklin. Union. Wayne Ran
dolph. Henry, Delaware. Grant. Miami.
Cass, Fulton. Pulaski. StArke. Ia Porte.
Porter and Lake counties. through which
the railroad rms
The Chesapeake and Ohio Railroad
Company Of Indiana was formed 10 tai =
over the old Chicago. Cincinnati aud
Louisville Railroad property. which was
sold recently by James p Goodrich re-
C-IN er. on an order from the United
States Circuit Court. Indiana district
Carl Remington and Gilbert Cannon. who,
the complaint AYERS. we're and are merely
attorneys for the Chesapeake and OHIO
Railroad Company. bad the property in
at something less than SS.6O.I1O. and
the property was decided tO them the
deed including all property formerly
held nv the G & A !. n u Az erre-d in
the complaint that Remington and Gan
non bought IN" property a. agents II
the Che~ap~ake and Obi" Railroad Com
pAny and that that foreign corporation
supplied the money for the purchase
Immediately after the sale had been
consummAied Mackie Remington. Gan
non. Calvin. Whitaker. star. the two
Lew Uses and Stevens formed the corpo-
ration known as the Chesapeake and
Ohio Railroad Company Of Indiana. with
a capital stock Of IS. ton on and Remiug-
ton and Cannon decided the property to
this concern
The state AYERS that the Chesapeake
and Ohio Railroad Company knew that
because % the Indiana Laws concerning
foreign corporations ~ could not as
such foreign corporation acquire and
hold the properly m this state II "a de-
clared that because - this knowledge
the foreign corporation made arrange
msnts with Cannon and bennington for
the purchase and that ~ CuuniN .d az and
assisted IN The formation Of the Chesa-
p~ake and Ohio Railroad Company ~
Indiana 20 further evade the LAWS of
the State