The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-10-02

Action against Eugene v. Purtelle
for selling stock in his proposed trac-
ton line for less than par value Will
be taken by the Indiana public service
commission, according to a statement
of it's secretary today to the Palla-
dium.
"The reported sales of stock in the
company are in violation of the law"
he continued. THAT company has re-
ceived no authority from the commits
sion to dispose of it's stock at a dis
count. The commission will begin its
investigation of the sales at once"
Although the Indiana public service
commission law specifically provides
that mo stock or certificate of stock
of public utility shall be sold at
discount or premium without the ap-
proval of the commission, and If sold
at discount the commission shall
| make a record thereof and give such
publicity of the fact as it may deem
necessary at the expense Of the util-
| ity," there is now evidence that stock
in the proposed Richmond and Ham
ilton traction company has been offer
/ ed for sale in this city at less than its
par value. This company was organ
lied some time ago under the laws OF
Indiana with capital of $4,000.
Buys Stock for $25.
Henry Rothert, a South Fifth street
groceryman, is wondering today how
! he is to recover a note for $25 he gave
to Eugene Purtelle, promoter of the
Richmond and Hamilton Traction com
pany, for share of preferred stock
which is represented to have par
value of 500.
| ho 0f the
agreement Rothert entered into, was
to be held until it was determined, or
November 3. whether this company
was to be actually organized. Rothert
says he was assured that if the voters
of Wayne and Boston townships on
election day voted in favor of subsi
Gizing the company to the amount OF
$4,000, work on the construction OF
the road would begin at once.
But. he complains, the note he ten
dered in payment for the one share OF
traction stock was not filed away by
the company promoters until after the
election. Yesterday, he says. Purtelle
went to local bank and attempted to
cash Mr.. Rother's note.
| Banks Hesitate.
An officer of the bank called him up
and asked him if such an arrangement
was satisfactory, and Mr.. Rothert lost
no time in informing him and officers
of the three other local banking insti-
tutions that under no circumstances
was this note to be cashed as he had
an agreement with Purtelle that the
note was to be returned to him in the
event the proposed traction company
did not organize after November 3.
Rothert says he feels confident the
note will not be cashed by the local
banks. but he is wondering If he can
prevent the traction promoter from re-
alizing on it elsewhere. He admits
that his note is perfectly negotiable
before or after the November election
when Mr.. Purtelle and John F1tz
| gibbons called on me the other DAY
they said they had one hundred shares
of preferred stock in the traction line
they were promoting and they lntend
| ed to sell one share to one nundreC
different people at rate or 20 pei
cent less than it's par value, explain
ed ROthert.
Return Again.
"I told them l never bought stool
and they said they would see me later
They called again next day. They nat
been sent back to see me by Adolpf
Blickwedel. told them l did not wan
to nav out S25 for share of stock un
less l was sure the line was to b.
built.
"Then they offered to take my not
for s25 with the understanding tha
It was to be held in trust until afte
the November election, and if afte
that time the company was not organ
ltzed the note would be returned to me