The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1912-06-18
Piaintr Makes vsrioY. Claims.
Amons Them Non-Psynsnt %
Interest on Bonds
NATIONAL RESERVE 10
NONRESIDENT CORPORATION
Alleged That the Nstiorsi Company
10 NEUTRALITY-SUSPICIOUS. Asks
Protection % court.

TIE bill In che suit for the fore
closure Of mortgage IN the case u
h Commonwealth Trust Company Of
Pittsburgh. plaintiff. ". The National.
Telephone Company was nied IN the
cfloe Of Clerk Georse r. Boyd. % he
United States Court. yesterday. and
some highly interesting Developments
In the litigation are brought 70 light.
the suit having been nied several
days AZ ParkersburE
The bin SETS forth that the Nation.
al Telephone Company. incorporated
under the laws OF the State % West
virginia on May 20. 1909. q maintain
and operate telephone and telegraph
lines on a general basis. was en-.
powered 10 purchase. own and con.
troll the capital stock % other compa-
nice. its authorized capital stock was
and r. ti6.OO0.OoO. divided Into one
hundred and nifty thousand shares Of
the par value % 500 each. The
stock was divided into two classes.
preferred and common. Of which S..
100000 was preferred and siO.OOo.OoO
common. After the organization OF
the company. 40 the bin claims. IA
oil shares. with a valuation OF ST.
tOi.io0. were issued and a bond issue
for go. 100000. 20 be secured by a
mortgage. Was issued. 10 be certified
and secured under . 2.6sO.OOO Of the
said bonds.
Mortgage Executed.
On July 1. 1908. n first and collater-
al trust mortgage WAS executed and
delivered 70 tho Metropolitan Trust
Company Of New York, trustee. 20 az
cure the 100000 IN bonds, OF
which t2.6s0.OO we're Afterwards GER.
tined. and that ti.O27. 200 OF the GER
ufed bonds were sold 10 divers and
sundry persons: and that si.652.300
OF the bonds were pledged a. security
for the payment OF loans made by the
company. the last mentioned bonds
having since been sold by the differ.
Cnt persons and corporations with
whom they were deposited as collat-
erAl security for loans made by the
company. and are now held and
owned by different persons 10 whom
they were cold. A certified copy OF
the mortgage f. fled az Exhibit A.
Il IL further alleged hat after the
defendant company had been charter
ed and organized for the purposes
above outlined and had issued It's
stock 10 utilized the same IN the pur-
chase and acquisition OF the whole or
n great majority OF the stock OF the
several other telephone companies.
II IL claimed that OF the 1913
shares o. common stock OF the Pitts
bursh a Allegheny Telephone Com
pany. ii.s7s we're transferred rnder
the mortgage al tho time OF the exc
cutlon OF the paper and that the re-
HmnNmAnw HNan H.mannA HnmInw Hhn mort.
gag later under the terms and con-
ditions thereof Also that o; the
1896 preferred shares OF the capital
stock. 1888 were transferred under
the cage al the time OF tie exc
cution and the remainder under the
terms % the mortgage. All OF the
above stocks were turned over 70 the
Metropolitan Trust Company. OF New
YORK. which IN return caused the said
s2.6sO.0O1 ~ the bonds 20 be certified
and delivered 20 the defendant
Interest Coupons Not Paid.
The plaintiff claims that the de.
PENDANT defaulted IN the payment OF
the interest coupons due July !, 1910,
n January !, 1911. and having de.
faulted and such default having con.
tinued FOR n period OF 20 days after
the maturity OF rhe coupons. the Met
rOpolitan Trust Company notified the
defendant ne well az lts receivers that
81 would lake such action for collec,
ton Rs authorized by the conditions
o. the mortgage. The notice bears
the date May IG. 1911. a copy beins
fled ~ exhibit n" Il IL further
claimed that tho defendant has no,
Jet paid any o. the interest coupon.
pr principal
After the above notice had beer
giVen. the Metropolitan company re-
signed a. trustee. the defendant caus
Ina the resignation % be accepted
followed BY the appointment Of the
plaintin corporation. the Common
wealth Trust company Of Pittsburgh
- SUCCESSOR trustee.
The trausfer % the stock was mad.
on April -. 1912. After the transfer
had been made he plaintiff claim,
hat u received a written notice from
,. - Vance. John J.. Dickey and Johr
~ Brown. asking hat the present
suit b Instituted and FOR a iudlcla
sale o. the securities. which. Il IL be
ueVod, l. al the property owned by
The defendant The three mentioned
are owners % more than % per cent
~ The outstanding bonds. Vance hold
ina 100000. Dickey $4,000 an,
Brown $4,000.
10 IL further alleged that the Ma
aonal company is %ins0lvent and hat
also a large unsecured floating IN
iebtcdroas With no source o. incom,
from which o. pay Che bonds or in
tsreat thereon or % even pay the IN
iereat on The receivers certificates
and that the other companies 90 %,
oorD6fhron are likewise situated. ID,
safe being believed not far distan
Ehen u VII be necessary Do f0recIos,
he mortgages % these underlying
companies. thereby making The stock
iow held hy tho plainfif vaiueiess
fhe plaintiff contends that ~ consider.
Z impossible 90 re0rFanize the under
TinR companies without fret havini
q foreclosure u such MORTGAGE as th.
outstanding bonds and preferred at,
1ommon stock. fha validity ~ whIcl
aaa been attacked in a SUIT in equity
1ow penfinR. are - much in erces.
" he property n the defendant fhs
he stock is 81 no value whatever. su,
he bonds not worth over 80 cents 0f
- dollar Therefore % is charged
inlees o. f1reci0surs fa had rho secur