The San Francisco call., 1910-05-04
NAPA VALLEY line
INVOLVED IN SUIT
Eastern Stock Holder Asks the
Court to Appoint Receiver
for Electric Road
Charges Mismanagement and
Appropriation of Bonds by
Directors

suit 10 have a receiver appointed for
the san Francisco, Vallejo and Napa
valley railroad, the electric line oper-
ating between Vallejo and Nspa and
St. Helena, was fled in the United
States circuit court yesterday by Ralph
W Boyer Of Milford. Mass. who is a
stock holder in the railroad.
Boyer also asks that a restraining
or8er be issued preventing the officers
of the road from Jisposing Of any of
The property. He also charges in his
bill Of complaint that William T. Bots
ford Of Los Angeles and formerly presi-
dent Of the American national bank of
Los Angeles president of the road, and
John T. York, the vice president, have
sQuandered the money raised by bond
5ssue for the purpose of extending the
road from Napa TO Cahstoga. These
allegations were forecasted exclusively
- The call some weeks ago.
OPERATED AT LOSS
According 20 Boyer. who owns 2,120
shares Of the capital stock of q par
"a lue OF 800 a share the road is being
operated at a loss and failed TO pay in
terest in October of last year and April
of 1910, as was guaranteed when the
stock was sold. He further alleges
'hat the Niles car company. from which
the rolling stock was purchased on the
snStallment plan. is about to begin suit
for back payments and to also recover
The cars sold to the railroad
Ia 1906, when the company was or
EanizeJ, the capitalization was placed
~ ssl,500-000 and was to exchange
bonds 1T par with the Vallejo. Benicis
ard Napa Valley railroad company. a
previously existing company. for its
franchises and privileges According
10 this agreement the defendants in the
action commenced yesterday delivered
10 the British American trust company
OF san Francisco, and which has sus-
pended business since then, mortgage
and deeds of trust of the old com
pany to the amount Of Sl,500,OOO and
which were TO be destroyed as they
were taken Up by the stock Of the pres
ent company.
Of the whole amount $4,000 was ex-
changed 1t is alleged that Botsford
and York came into possession of these
shares that We're TO he Cancelled when
HE trust company suspended business.
and instead Of canceling them have
Sypothecated the bonds for their pri-
Nafe use.
BONDS NIS4PPLIED
Boyer alleges that after the road was
completed two bond issues of $500 600
each were made to extend the road first
10 81 Helena and then 10 Cslistoga He
contends that this bond issue netted
Se5S,000. and that Botsford and York
1alled 10 apply the money to the pro-
posed extension Of the road but appro-
priated large amounts Of the money TO
tEeir own use. In addition to this al
legged misuse Of funds the plaintiff as
SertS that BOtsford and York have
pledged bonds Of the old and new com
panies amounting to S7o1, 900 to secure
their personal notes for SS0S. 1867 OF
this stock s479.0o0 belonged to the old
company and should have been can
celed.
Boyer asks the court to compel Bots
ford and York 10 deliver TO the stock
holders bonds OF the old company to
tne amount Of $479 GOO: as well as
bonds OF the new company for s46S, 600
and $4,000 in interest. which he claims
was WrOngfully, diverted by them It
is further alleged that the railroad is
hopelessly insOlvent and operated last
wear at a loss Of S29,266.79. During the
-trsr three months of this year, il is
claimed, the road was run at a still
higher rate Of loss.
The road is "a miles long and ex-
rends from Vallejo TO st. Helena Boyer
IS anxious that the road be kept in
OBJ ton he suit was brought on
Information sworn TO by George M
Walker, who examined the condition of
the road for Boyer and other stock
holders The complaint was drawn by
Guy NJ Walker attorney at Is Wall
street New York. Horace y. Pillsbury
is the local counsel in the action.
In March Of this year it was stated
by local financiers that the Vallejo,
Benicia and Napa Valley railroad COM
pany was to be reorganized. At that
time il was said that Botsford would
be eliminated from the management
and the line would be taken over by
the Monticello steamship company.
Captain Z. ]. Hatch, president of the
Monticello steamship company. said at
that time that a reorganization Of the
electric line was imminent and that the
Monticello company was considering
The acquisition Of the railroad
There IS also suit against the road
pending in the superior courts Of Los
Angeles. This suit was brought in