Free trader-journal. (Ottawa, Ill.) 1916-1920, 1919-12-30
STOCK DEAL BRINGS.
KlAW PARTNERS.
TO CHANCERY COURT.
TEN SHARES OF SAND COMPANY
ISSUE CONTENTION BETWEEN
CAPT. MELVILLE CLARK AND
JUDGE W. n. HINEBAUGH--
FORMER FILES SUIT.

Eek Congressman William It, llino-
, baugh was made defendant in a chan
Gerry suit START ed in the Circuit Court
today by his former law partner, Capt
Melville W. Clark, A. h. r. Will
the case. which hinges on a peculiar
law angle, is only to recover ten
Fhares If American Silica Sand Com
pany stock and Their earnings during
part OF the time Capt Clark was in
the army, it will doubtless attrac
much attention when it comes up for
tr.al TN account of the prominence of
the complainant and defendant
The bill states that Attorney Clark.
eX4CongresSman Hinebaugh and
County Judge h. Harry Reck were
partners before he entered the sery.
ice, maintaining Offices in Ottawa and
MENDOZA. He alleges that the Bossel-
man Sand Company was organized in
1915, with himself, w. &. Bosselmann
and Alta BosSelmann as incorporates,
and with a capital stock of $1,000.
! Inc concern was engaged in the min
ing and sale of LA Sale County sand.
In l9l1, according to the statement
OF the plaintiff, the name OF the com
pany was changed to the American
Silica Sand Company and the capitai
stock increased from $4,000 to $1,000
with Clark as president of the con
Germ. He states that at this time he
was stationed at Camp Grant, in the
military service of the country, and
; but INT taI hi / ,,..
to large extent to Mr.. IIncbaugh. as
he had complete confidence in him,
and relied largely upon his judgment.
his law partner being a man OF moro
mature years and experience. He
states that he was assured that he
would be reelected to the presidency
Of the company upon his return from
the service, and gave him prONN
for his shares. after rcSigning from
the Office to go to war.
He also states that the affairs e
the company We're moi NUurishing a.
the time the capital was increased
aud tinancial difficulties We're fast AT
preaching: that it was questionable
whether the full subscription OF the
increased capital stock Would save the
company from bankruptcy. He de,
clares that his partner urged him Ia
subscribe for ton shares Of The in.
creased stock, and give llinebaugh a
proxy representing that chen they
would have the controlling stock ana
would be in a better position to make
4 sale OF the holdings
Clark alleges that he subscribed fol
the ten shares on July :. 1918. Whilo
on a leave Of absence from Cam
Grant. and received a certificates of
stock numbered 8 from The sccrclar,
Ct the company. He claims that h.
did not have the 81 900 10 nay for III
shares at the time and. due to iho
yhcrtness Ct his leave of absence, did
not have time to li;se the funds. He
states that Mr. Hinnbaugh requested
him Ia assign him the stock. rromis.
ing to secure a loan of 81 .OOO on il for
plaintiff and turn it over to the sec.
rctar, Of the company.
The bill states that shortly after
this occurrence Capt. Clark became a
member Of the \ T.. f.. and remained
in the service until Oc!. Is. 1919 ''dn'
ing all of which time he relied i'm.
llicity On the Judgment. honesty an |
integrity of his partner. councillor and
adViocr William II. Hinebaugh as to
his investments of said company ana
'thc" business Matters
The plaintiti further alleges in hi
bin that shortly after receiving tho
assignment of stock Mr. lIinchauEH
presented the certificate to the socrc-
tary Of the concern, stating in sub.
stance the above, and further stated
tina me was unable to secure l0aG.
in that the banks requested that the
certificate be issued directly 20 him.
lie aked the secretary 10 cancel Ger.
titcatc No s on the books and iEsuo
a new certificate to him, 80 that he
might receive a loan for Clark. Il Is
further stated hat the secretary j..
| ued certificate of the stock tn Nj.
ilincbaugh
Clark claims that on Nov. > the com
pany declared IA % per cent diy idcnd
10 all stockholders. paying lIinobaugd
$3.50 on the ten shares of stock; that
on Jan the capital stock was in