The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1919-05-23
HIGH HNANC|ERS
ORGANIZE COMPANY
Violation of Blue Sky Laws Alleged
Restraining Order Sought Against
Nampa Non-Partisan Paper

Was frenzied finance practiced i
the organization of the Co-Operativ
Publishing Company at Nampa! Di,
the promoters fail to comply witt
the laws of the state?
SATURDAY. action was started in tn
district court in this city by l. L
Young and c. NJ. Bumgarner in which
the plaintiffs ask that the Namp;
publishing company be restrained
from selling stock and bonds, or per
hitting the exchange of bonds fol
stock. or withdrawing or paying out
the capital stock of the corporation
The plaintiffs allege that the Co
Operative Publishing. company, has
wholly failed. refused and neglected
to comply with the laws of the. state
providing for the supervision OF cor
porations and commonly known as
the blue sky laws.
Judge Edward l. Bryan has order
ed that the defendants, who include
G. w. Scholtz, manager OF the Co
operative Publishing company, and the
present acting board of directors, ap-
pear before his court next Saturday
morning at 10 o'clock to show cause
why the restraining order should not
be granted. L, l. Young, who is re-
sponsible for the action brought
against the Non-Partisan organ. is
one of seven who are serving on the
board of trustees. being elected to
that position November 10, 1918,
Charge Failure to Comply
According to the complaint. the
publishing company has never com
piled with the Idaho statutes having
never filed with the state bank ex-
aminer such statements as are reouir-
ed BY statute and since its organiza-
ton March IS. 1918 has never COM
piled with the state laws in any man
ner as regards the organization of a
corporation under the Idaho statutes.
Because of this negligence the cor
poration Is alleged TO be unlawfullv
selling stocks and bonds and has be-
come liable to the fines and penalties
provided under the act for the viola
ton of its terms and provisions.
Court Action Last Resort
Nav S. according to the COMPLAIN.
the plaintiffs in writing demanded the
acting board of directors to comply
with the Idaho statutes and on Nav
10. the acting board of directors re-
fused TO take any action on the mat
ter Court action was taken as last
resort TO compel the MANAGEMENT of
the CORPORATION to comply with the
state laws
n is further pointed out in the
complaint that the financial stat
us of the company is at present at
such q low ehb and its resources
are being SO rapidly exhausted
that the sale of further bonds VIII
produce funds which VIII be used.
in the opinion Of The plaintiffs,
in paying for operating costs of
the conceru. thereby purchasers
Of the honds VIII exhaust al of
the procert~ Of the corporation to
the total less Of the defendants
and osAer stockholders. Bonds
are hef1g exchanged for stock
thereby affecting i withdrawal
Of The ca4ssal Ct the corporation
AoqercT q the ccr7cr71cu < val
7cs n less sR1l sou erc-he-ed
- the znourt nS SySaa S.,rSs -
the 1norn- cS SaEe have Seer scht
md tint advance <re.s---7-s-rs :, -
Idaho Free Press. 7raEsArs Il M
"a total nAuu1 S7AlH and IN cc--
porzrson Is xnif - hare exoer5es -.
N@S ~ AAN A@NS-~A -AE-- - -Ic-~
proceeds
Other Charges NA5e
This court zc1son dtreioec5 iron :
long standing controversy regzrsrnc
the legality of the election 81 G W
Scholt- rs manager OF the oc-pc-z-
;ica and ccates.s=s shs eiecssc. ::
the present board of directors
Among violations of the rules o; the
corporation as set forth in the com
plant is the election Of five directors
March io when the constitution Of the
organization called for 4 board OF
three members.
Bonds to the value Of $1,000 were
authorized hv the stockholders in the
corporation to be secured BY 4 chattei
mortgage 10 the trustees OF which l.
l. Young is one The value OF the
property is estimated At presen, 4,
2S.Oo0 which il is alleged in the com
: Rlaint, under the methods OF finance
as at present employed. cannot pos
sihly be increased
Alter Date of Bonds
It s further alleged that in Noven-
Der the stockholders determined 10
date their bonds January l. 1919. 10
bear interest n 6 per cent. maturing
in 10 years April , after u,anv
bonds had been sold. the board Of d.
rectors changed the terms of the
honds and 1asA.s 49,, - H.. - =.