Oakland Tribune, April 29, 1914, page 5:
STOCKHOLDERS SUE COMPANY OFFICERS
Conspiracy Is Alleged in the Carrying Out of Contracts.
Dissatisfied stockholders in the Pacific Telephone Herald Company have filed suits in the Superior Court, demanding damages in the sum of $200,000 from certain of its officers and from the United States Telephone Herald Company, together with its agents, alleging conspiracy in the carrying out of contracts entered into by which the local concern took over patents and patent rights from the United States Company, the original concern.
While all the officers and the Pacific Company are made defendants in one of the two suits, the actions are directed in particular against C. C. Balassa, agent of the Pacific company, and C. J. Ward and S. H. Whisner, stock promoters, whom it is alleged contracted with Balassa contrary to the best interests of the plaintiff corporation.
The suit against the United States Company et al. alleges that plaintiff contracted for operating rights in twenty-one states, provinces in Canada and in the Hawaian Islands for the payment of $53,000 in cash and 25,000 shares of stock in the Pacific Company. The contract was made between Balassa, representing the parent concern, and Ward & Whisner, last October. It is alleged further that Lord & Whisner conspired to share the money payment with Balassa in a irregular manner.
In the deal was included the taking over of the rights held in a number of counties in this state by the California Telephone Herald Company which involved $10,000 in cash and a promissory note for $12,500. That the entire proceedings were irregular in so far as the Pacific Company is concerned, are the grounds upon which plaintiff asks for an order restraining Ward & Whisner from selling any more stick, for an accounting of the payments which have been made for patent rights, the return of the cash into the treasury and the cancellation of the promissory note held by Ward & Whisner.
The Pacific Telephone Herald Company was incorporated by a number of local men to carry on the unique business of sending out entertainment and news from a central station to subscribers over a telephone contrivance installed in homes and business places for monthly rentals.