The Hood River glacier. (Hood River, Or.) 1889-1933, 1910-06-23
EVANS ALLEGES PLOT
TO FREEZE OUT

In suit filed Monday by N. c..
Evans against The Hood River Electric
Light, Power & Water company, H..
F. Davidson, J. l.. Henderson, W. H.
Chipping and the Hood River Light 4
Power company, the plaintiff alleges
that the recent transfer of the local
water and electric plants from the first
named company, of which the plaintiff
is minority stockholder, to the latter
company was not in good faith, being
a part of plot on the part of the
three directors who are made defen-
dants in the suit to freeze the plaintiff
out of the corporation, Of which they
and the plaintiff are the owners of all
the stock, and Evans asks the court to
set aside the sale and to enjoin the
dissolution of the corporation.
The suit followed notice of its com
ing and is one of series which Evans
has brought against H. F. Davidson,
the president and principal owner OF
the corporation and his associates.
Evans obtained judgment in suit
last fall on account Of fraudulent acts
which had been accomplished by the
directors of the company in the in
terests of Davidson. There was a SUIT
pending already in which Evans al
leges that Davidson and others had
been drawing excessive salaries from
the old corporation. The complaint
filed Monday is rather lengthy and out
lines the former suits, going on to
make further allegations. He alleges
that the whole affair has been a plot
to freeze him out 80 that H. F.
Davidson and w. H. Chipping would
become the sole owners of the cor
poration getting Evans share for less
than it was worth.
Evans cites the resolution of the
stockholders passed over his protest
authorizing the directors to sell the
plant and alleges that the plant is
solvent, having earned SIS, 900 in 1908
and during the first few months of
1910 having earned 8 per cent net on a
valuation of $685. 900. He complains
that there was no legitimate reason
| for the sale or dissolution of the cor
poration. He cites the agreement
made by President Davidson and
Secretary Henderson to sell the
property of the corporation for
$4,000 to the Hood River Light &
Power company, the purchasers to
assume the bonded ndebtness of
$76, 800 held by the Portland Trust
company and pay the balance in cash.
Evans cites the notice he served on
new corporation after it had taken the
option informing them of the fact that
he had offered $4,000 for the pro-
perty of the corporation and that they
were buying at their own peril. Evans
| alleges that the deed from one cor
poration to the other in the sale was
not in good faith and that the Hood
River Light & Power company or
ganized by John D. Wilcox, Robert
Smith and Writ Minor was merely a
dummy corporation formed for the
purpose of helping Davidson freeze
Evans out. He alleges that the price
at which the property was sold was
too low and that it is really worth
more than 5000, 900. Evans alleges that
he repeatedly asked the directors and
stockholders of the old corporation
to set price for which they would
sell the property or their individual
blOCkS Ol SlOCk. Evans says Ihdt the
snit was brought in behalf of the
corporation and that the giving of the
deed has worked a dissolution of the
corporation. At the end of the com
plant, covering % pages, Evans asks
the court to cancel and set aside deed
and to decree the property to belong
to the old corporation. He asks that
the light and power company be held
to account for money received and
proceeds of the business since the deed
was given and that it be enjoned
from selling the paint particularly
to the city of Hood River. He asks
further that the resolution of the
Davidson company for a sale and dis
solution be rescinded and that the
directors and stockholders be enjoined
from dissolving while the corporation
is solvent. He asks that the costs,
attorneys fees and expenses of pro-
secution of the suit be borne by the
corporation in behalf of which the suit
is brought