Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-02-19
HACAN ASKS INJUNCTION
AGAINST CANADIANS
tortion in Settling Rail-
road Claim.
ECHO or nENRIco TRACTION
Canadians Advanced Money for Pur-
chase Of Stock in Hagan's Name
to Create Appearance of Local
Corporation.

Charging an attempt at fraud and OK
tor,ion. John c. HaEan late yesterday
pctitioncd Judge Beverly T. Crump in
the Law and Equity Court for an in
junction restraining the Union Trust
Company. Finance Security Company.
l.. T.. y. puNcrnct, Charles McGhcc and
j. NJ. McWhinncy. all of Toronto. from
any further prosecution OF their suit
against him for si26.766 until they had
answered special bill filed with the
court.
Judge Crump heard argument OF
counsel. attorneys for tho Canadian
parties protesting against the petition,
and continued the matter until Thurs
day morning. \; that time he will hear
further argument on the petition for
the injunction. The sui for damages
was fled in the Law and Equity Court
last summer. and grew out of the con-
struction of the Richmond and Hen
rico Railway. which WAS taken over
about two years ago by the Virginia
Railway and Power Company.
In his bill yesterday Mr.. Hasan set
forth that the Union Trust Company
had brought suit against him for slc6.-
16G. Of which only s?5.227 had been adj
vanccd. and against him there were
several credits aSGreCatinE sS.loo. lie
alleged that of tho Sl"f.I66. the charge
Of $685. is made for interest. and that
this rate is an cXtortiou when made on
a principal of So5.c%I.
OUTGRowTH OF OLD
HENRICO RAILWAY
The obligation wGs incurred in the
construction of tn Richmond and Hen
rico Railway Company. In August,
1910. John {. Eiagan. w. T.. Jenkins s.
l.. Kelley and w :. Forbes entered
into an agreement with tho two imam
cial concerns and tho individuals. who
arc the directors and operators of the
TWO companies. for the construction OF
tho traction line. Under tho terms OF
this agreement the Canadian parties
were to furnish seven ciShths the cap
iiai and W. :. Forbes the remaining
one-cishth.
Later it was desired TO create tho
appearance that fourth Of tho cap
ital was locally subscribed, and w. :.
Forbes agreed TO take AN additional
onc-ciGhth. After some discussion. the
Canadian bankers decided to advance
the money for the purchase OF one
eighth in the name OF john G. liagan,
holding the stock rs collateral This
stock amounted to s6o,56 and several
other advaucements. together with
compound interest, compounded quar-
terly.
owners Of the stock agreed that tho
stock should be pooled, and no one dis
pose OF his holdings without the con-
sent OF other holders. Mr.. liagan al
leEes then that the Union Trust Com
pany forced the company into re-
ownership, and later negotiated with
tho Virginia Railway and Power Com
pary for the sale OF the properties.
Had the owners disposed OF their
holdings 10 the later company at the
first offer, Mr.. ilagan charges. they
would have been practically reimbursed
for their expenditures. However. the
Union Trust Company forced sale a;
&c o-5 cents on the dollar. making pay
rlcnt in s;ock later found. he said 10
be worth only about 80 cents per 81.
In his bill M. Hagan asks the court
20 make tho Canadian bankers answer
his bill. and 20 grant him an iniunc-
,ioa preventing further prosecution
Of the damage suit. claiming that the
company now owes him considerable
sum