El Paso herald. (El Paso, Tex.) 1901-1931, 1911-06-06
S 800 IN STOCK IS
now CONSIDERED
WORTH s $500
]. R. Segall Sues DIR. Gal
lagher For Damages;
Business Differences.

A suit styled J. r. Segan VS.. Dr. f.
w. Gallagher was filed Tuesday morn
inc. in the s4th district court asking
damages in the sum of $4,000 for al
legged defamation of character me
suit arises out of the business am
cultses between the two men he
Gently DR.. Gallagher filed SUIT Tor re-
ceiver for the FL Paso Optical com
pany. organized and managed py De
gall SegalPs counter suit is the re-
suit.
plaintiff goes into the history OF the
INCORPORATION of his concern and de-
,c1ares that since its organization II
has maid 20 percent dividends, and that
the stock increased in such ratio tnat
DR.. Gallagher asked $4,000 for three
shares that cost $780,
The paper recites;
aDr Gallagher was the owner OF
five shares, ]. r. Segall was the own
er of five shares. Dr. Carpenter was
the owner of five shares, Dr.. Scnus1er
was the owner of three shares Ut
Irwin and DR.. Gray each owned one
share. and that said stock was Of the
xalue of s1O0 a share; that said parties
naid in hut so percent on the value OF
the stock subscribed -
THAT shortly after incorporation,
Drs. Irwin and Gray sold their interes1
to DR.. Gallagher and ]. r. Segah TOT
$50 each share the amount they palo
FOR same. and DR.. Gallagher was elect
ed president, DR.. Carpenter vice pres
ident and treasurer; and Sega1I secre-
tarv and placed in charge OF the pusl-
ness as manager at salary u go
per week. Shortly Thereafter ms s0A-
arv was increased to $40 per week
ton m a
nercent dividend was declared, anc
tbereafter DR.. Carpenter and Dr..
Schuster sold their interest at an IN
crease of 100 percent to SegaH ano
that the said Segall, the plaintl1I
herein. informed DR.. Gallagher, oe-
PENDANT of the fact that he, SegalI'
had purchased all outstanding interest,"
and was the owner of same, ano
thereupon said plaintiff Offered oe-
PENDANT the sum Of $500 for his three
tenths interest in which said de1enq-
ant had originally invested S5eV' anu
that he informed plaintiff that he Clio
not need the money and was perfectly
satisfied with the manner in which
the PLAINTIFF herein conducted SAID
business.
s-Thereafter the said Segan drew the
SIM of $40 per week in payment OF
his services as said manager, ano
Gallagher. defendant herein, received
a 90 percent dividend on his $500 in
vestment-"
The Reorganization.
The petition sets forth, that, owlns
to necessities regarding move made
necessary by wrecking the bullolhg
where the concern was doing business.
secali wanted to raise $4,000 more and
defendant suggested increasing the
capital stock to $4,000 He started to
do this. Segall alleges. and sold some
of the stock. but Gallagher refused TO
sanction it. Continuing the petition
says:
s.That plaintiff was then compelled
70 cancel the subscriptions to the IN
creased capitalization and to return
the money to the subscribers thereof
and thereafter the defendant, through
his agents. demanded that the salo
plaintiff pay the said sum OF 'SSSVo
and that. in default thereof. the state
Of TEXAS would take action in the
matter. and criminal and civil proceed
fn0s would at once be taken and the
said business placed in the hands OF a
receiver: plaintiff further represents
that he sought to keep books for the
company, that his knowledge OF DOCK
keeping is defective and that he enter
tanned fear of criminal prosecution be-
cause Of defective bookkeeping, ano
while laboring under the fear OF the
consequences OF the threat OF criminal
proceedings, plaintiff agreed to sub
NIT to the said proposition;
THAT plaintiff was unable to pay
cash. but agreed to place the stock
in escrow and pay thereon the sum OF
5000 monthly until the amount should
be paid: that thereupon the defendant
proposed a counter proposition to the
effect that plaintiff. Segall. should
turn over to him, the said defendant,
ell his stock and interest in the bust
ness. and should continue as manager
of the business at a salary of $125 per
month, under the control and direction
of the defendant The plaintiff there
upon advised with his friends and re-
fused to submit"
Then follows the statement OF the
receivership applied for and secured
bv Gallagher, and the declaration that
statements made by DR.. Gallagher
about plaintiff have greatly injured
the plaintiff in the eyes Of friends and
the public, and that the domestic peace
and happiness of his family have been
consequently disturbed. hence he wants
$4,000 actual and $4,000 punitory dam