The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1911-09-14
HAYNES WINS IN LONG FIGHT
Court Holds That Property Actually
Constructed by the Kenosha Street
Railway Company is Liable for the
Bonds Held by the Promoters.

Settling an old controversy which
aas been in the courts of Kenosha
county for more than eight years
Judge James O'Niel Of Nielsville this
morning filed with the clerk of the cir
cult court a decision in the long con-
tested case of Haynes and ClausSen VS..
the Kenosha Street Railway company,
The Kenosha Electric Railway company
and other allied corporations.
The decision Of Judge O'Niel simply
amplifes the decision of the supreme
court in which it was held that Haynes
and Claussen, the promoters of the first
franchise for an electric railway in
Kenosha had a legal right to collect
from the companies interested their
claim of 100000 for services rendered.
The legality of the claim Of the pro
moters had been passed upon by the
supreme court and the case had been
referred to the lower court again to
decide just what part of the present
property of the Kenosha Electric Rail
way company was subject to the lien
of the promoters. Under the ruling Of
the supreme court the question OF the
claim was practically satisfied, but at
the new hearing the attorneys for the
railway company, B. j. Arnold and
others raised the question rs to the
validity of the bonds held by the pro
moters.
In his decision Judge O'Niel states
that he is unwilling to hold that these
bonds are void, but that they must be
held the same as any other liability
of the company. The attorneys for the
railway company held that the bonds
were void because they were not is
sued to provide for the construction Of
the physical property of the Arnold
Electric company and the Kenosha
Street Railway company. The court
further holds that the Arnold Electric
company did not hold the property of
the Kenosha Street Railway company
and that the officials of the company
were at all times informed Of the
claims of the promoters for REIN
bursement Coming down to the pres
eat day status of the case the court
holds that the bonds held by the pro
motors shall be lien only against such
property of the Kenosha Electric Rail
way company as was actually built
and constructed before the Kenosha
Street Railway company went out of
business and the work started 'bv it
was taken up by the present company
under the management of Bion J,
Arnold. This marks the line for the
division of the property. There is no
doubt but that the property covered
by the decision is sufficient to pay all
the claims of the promoters and it is
probable that the claims will now be
paid by the Kenosha Electric Railway
NOhlBe1Aly do d ClNlo1Ou Ol' Iue LIE is q
physical impossibility
The court holds that the promoters
of the line shall recover only "tax
able" costs an dbig claims for inter
est and attorneys fees win be mat
ter to be taken up later. 1t is prob
able that the settlement of these
claims will bring new court action
between the promoters and the present
owners of the railway lines. The origi-
nal claim of the promoters was $4,000
which amount they claimed was cover
ed by bonds in the Kenosha Street
Railway company. In the decision
Judge O'Niel directs that final judg
ments for the settlement of all points
in issue be prepared in keeping with
his decision.