The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1912-09-16
BBRlOUS CHARGES
IADE In ANSWER
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NJ City . Ein Grove Company. ~ re-
!. pp.4ent IN the case Of A ~. Hamilton
ss:-r - III, ne si % eosI.;s, n N ss =,
{ - - che circuit court On saturday
Amssg other thfnss In the answer.
1nftous charges are made against Henry
D4yf - follows:
ffs company as Respondent. say. ne
~; de eomp.ny ,--ued ave eea emf
go coupon bonds dated June 10. 1903. ~
IRE There we're 1900 bonds u N. par
sss sss u Shisp sss. s.so. see 'o ~
: truet % ke exchanged for outstanding
ss.a. ef : prior i-.us u the Wheeling
ADDITIONAL bombs amounting TO tbse. 600
wers Deposited ~ fra~, for 'h- purpose
Of improvements They were secured by
nortEags deed OF trust
II IL also true. respondent says that
IN fyos defcndnnts held all us stock
and during the year John A. Howard. W.
neen sp. s sps .Ss k isrssh sps,ss
eonsfitutsd the board Of directors
Ano that AZ a meeting held by the
svs se nor May ~; IN, i'ss; ,,,. di, Wider OF
declared. and by resolution the dividend
wee directed 10 be paid out OF 100 bonds
q 1905 issue. The bonds were distrib-
utsd among the stockholders IN pro-
portion TO their holdings. W. @. Caid-
vel! receiving one bond. Alfred cald-
Ssn; ssvsn' W. spsiasl. fys; Joseph
John A. Howard. nfty-one. and W G
Hsndlsn. nftesn.
Hsks General Denial
Respondent denies that 10 was with
ut surplus at tho time distribution
ses made and all other complaints that
fhe company was not maintaining Its
business In the proper way and making
improvements rs needed
Agreement with Howard
Respondent H. Informed and charges
uf a.
Wh ceiling g. Film Grove Railroad COM
pany he had an agreement with John A.
!. Howard. by which said Howard was to
share In the profits Of the purchase. but
Vas not required TO furnish any money.
In organizing the city n Elm Grove
ksuroad Company. Schmulbach and as
sociates secured the services OF g. ~
Noyss. Frank A. o'Brien. JOSEPH OBrien.
EbeiinE and - Hartman to act as
straw men Tor the purpose OF organizing
enterprise.
The respondent 10 Informed and
charges they were used merely by said
schmuihach and associates 20 procure "a
chnrter and set as directors aud officers
/ until echmulbach and associates could
/. complete the sale As soon as the char
ter for the city * Elm Grove Railroad
Co was procured. said straw men be-
came it, board Of directors and AZ once
proceeded 10 do the bidding OF Echmul-
bach and associates. One OF the first
scts or the straw men, and this at the
t'etah'f u EfNhuAuutn ana associates.
was 70 make proposition for the City a
Elm Grove Railroad Co 20 purchase all
ne property OF the Wheeling A Elm
= grove Railroad Company for the sum of
lzoS.tOo. This was prepared at the in
ytanee or Schmulhach and associates as
Respondent T. Informed and was accepted
: ey the directors and stockholders OF the
wheeling a Elm Grove Railroad Co
which was owned and controlled almost
entrely by Schmulbach
AFTER the acceptance. I'm fact on the
same day. as respondent is Informed
said schmulbach delivered his rerson1i
check 90 the treasurer Of the Wheeling A
Elm Grove Railroad 90. for the amount
or f2OS. 400. on the following day re-
spondent IL Informed and charges aald
schmulboch received back from the
treasurer OF the Wheeling n Elm Grove
Hallroad Go. to-wit: $4,000 Of said
s2O3.iOO. said Schmulhach and hts asso-
ciates in the Wheeling A. Elm Grove
nsilroad co. sought To- make "a appear
thst the sum OF $4,000 was paid 10 mir,
~ dividend by the Wheeling a. Elm
oroNe Railroad Co. hut respondent enys
on Information and better thar said
rchnulnach waE dealing with himself in
TIC transaction and did not advance the
szosiOO IN good faith. but went through