Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-06-04
srockHOLpERS APPEAR IN
COURT AND PROTEST AGAINST
PETITION OF RECEIVER.
MAKE CHARGES PROPERTY
WOULD BE coNFiscATED
Allegations Also Made That Author
ICED Debts Were Contracted and
Funds Secured to Promote Other
Lundy Corporations - Claim Com
pany is STRENGTHENING Postponed.
Special to Times-Republican.

Special to Times Republican.
Eldora, June 4.-The application
made by Charles o. Ryan, receiver for
the Park Dam Company, before the
district court to sell the property OF
said company will be heard at an adj
journed session Of the court, which
will convene June 80. This action
was made necessary because of filed
objections by stockholders to the ap-
plication of the receiver to sell the
property. The portion of the stock
holders in the company so Directing
were Jay S. Newcomer, Lovell-Schol-
field Lumer Company, L. B. Marks, F.
J. McNiel, Eldora Motor Company, e.
l.. Hays, J. D. Reed, Peter Jensen. G.
F. Stauffer, A. E. Smith, G. A. Reaver,
+. j. Edgar and F. H. Oldenburg These
stockholders who are filing objections,
in their allegations make the follow
ing claims:
The value of the real property and
the actual cost thereof, by conservative
appraisement has been placed at about
$sS,254. This does not include the val
ue of franchises owned by the corpo-
ration. namely, the grant of the city
of Eldora. Of Hubbard and Steamboat
Rock. With these values included, said
company's assets far exceed its liza
bilities.
The personal property, stock, notes,
accounts. and money amount to $18,-
| 900; capital stock issued and sold and
| money paid amounts to SS4, $50. The
only debt authorized by the board Of
directors was the mortgage to the Cit
| liens Savings Bank Of Union for 3d.
| 600.
The company now nets each month
$500 to $1,000, and is a running COM
pany.
The current obligations are but 3d.
900.
The mortgage for $4,000 is not due,
merely the annual interest for $1,000.
Money to Meet Pressing Claims.
The receiver has 5000 on hand, which
with outstanding accounts Is suf-
fcient to meet all pressing claims.
The report Of the receiver and the
actuary shows merchantable personal
property to the amount Of $4,000 and
accounts. notes and unpaid subscrip-
tons for s7.346.87.
The original petition for a receiver
alleged the corporation had no proper
ty to meet claims, was insolvent with
no money. Afterward these allegations
were withdrawn and there was as
signed temporary embarrassment be-
cause Of lack Of ready money.
Charge Juggling Of Funds.
| At the time the receiver was ap-
pointed the largest Indebtedness was
for s17.655.2S to the Northwestern
Electric Equipment Company, that
this indebtedness was never author
lied by the company or its board Of
directors and that it was for the de-
velopment of other companies, using
the Park Dam Company as means Of
credit.
Said open account OF E. H. Lundy
was for development and organization
of other corporations and after the ap-
pointment Of receiver, E. H. Lundy
turned over to his father, E. W. Lundy.
private property to the amount Of
about 100000. and that E. w. Lundy
took up claim of Northwestern Elec-
trio Equipment Company and an as
signment Of all Of the claims as father
of E. H. Lundy and that said claim ls
not debt Of this company.
Aside from the claims above the in
| ueDlelueSS Is anu SOuld NC paw
by collections and money on hand.
Company Not Insolvent.
The company is not insolvent, re-
ceiver is not necessary and court had
no Jurisdiction to appoint the receiver.
The reasons set forth by the receiv-
err why the property should be sold are
speculative. unreasonable and no.
founded upon existing facts or condi-
tons and are remote contingency.
that danger to the plant can he easily
avoided and obviated should occasion
arise.
That at the time of illness Of r. Fl.
|Iundy he had perfected plans for con-
solidating this company with other OF
his corporations. had an appraisement
showing total value Of the combined
companies to be $4,000 and had ar
ranged to bond the consolidated com
panies for 100000. To give all stock
holders Of this company par value OF
their stock or to take stock in the new
corporation, that consolidation can yet
be made upon the return Of E. H. Lun
dy to active work, thereby protecting
all parties and constituting said COM
pany.
confise alton Of Stock Feared.
That sale would result in the disso-
luton Of the corporation and confisca-
ton OF the stock of the stockholders.
That said receivership was obtained
for and at the request Of E. H. Lundy
and for his benefit and the application
Of receiver asking for sale of the prop
erty is made at request of said E. w.
I4undy, who holds an assignment of all
OF the debts.
Ask Receivers Discharge.
These above are the claims made by
the Directing stockholders and these
lobjections will be taken into consider
jation on June 30.
In another petition the same stock
holders ask for the discharge Of the
receiver. upon substantially the same
grounds as is covered in the objec-
ltions to the sale Of the company prop
erty. This application will also be
heard upon June 80, before the court.
7 AGAIN SHIPPING BOOZE.
Express Companies Renew Handling
Of Liquors in orinnslI.