Story: Millions Involved - Charles Ruggles Sues the Buckley & Douglas Lumber Co. and the M&NE

From the Detroit Free Press - 1900-1903

1900. Grand Rapids, Mich. A sensational suit has been commenced in the United States Court here by Charles F. Ruggles of Chicago, involving property amounting to over four millions of dollars, and it is the biggest lumber case ever known in this part of the state. The defendants are Edward Buckley, William Douglass and the Buckley & Douglass Lumber Company of Manistee and the Manistee & Northeastern Railroad Company.

Charles F. Ruggles, formerly resided in Manistee, and is now a wealthy capitalist in Chicago. Buckley was his brother-in-law in 1874 when they became associated together in business. In that year, Buckley failed in business, went into bankruptcy, and after a hearing was discharged in bankruptcy in the federal courts. He had no property of any nature and Ruggles, it is stated, decided to take him into his employ. Buckley gladly consented, and an arrangement was made whereby Buckley was to assume the management of Ruggles' interests, or certain portions of them under direction of Ruggles, the latter to receive 10 percent interest, compounded annually, upon his investment, and the balance of the profits to be divided equally between Ruggles and Buckley.

There was no written agreement to this effect, however, but simply a verbal understanding, which continued until 1880 when the verbal terms were embodied in writing. In 1880 it was deemed advisable to take William Douglass into the business, Douglass and his wife contributing a logging outfit worth $850. The Buckley & Douglass Lumber Co. was formed and is in operation today. In 1887 the Manistee & Northeastern Railroad Co. was organized and a line built from Manistee to Traverse City for the purpose of lumbering and carrying on the interests of the lumber company. The capital stock was originally $600,000 but it was increased in 1892 to $2,000,000.

Ruggles alleges that he has not been paid, and that the defendants have defrauded him, and asks for a dissolution of partnership, the appointment of a received and an accounting. A temporary injunction was granted restraining the defendants from disposing of the property. The case will track much attention all of the northwestern part of the state, especially in lumbering circles.

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1903. October 19. Wins Big Suit. Charles Ruggles Gets $1,000,000 by Litigation.

It is estimated that Charles F. Ruggles, the former Manistee lumberman, will get almost $1,000,000 as the result of his litigation with the Edward Buckley interests - the Ruggles-Buckley combination, Buckley & Douglas, the Manistee & Northeastern Railway Company and the Douglas Land company. Judge Wing, who was called here top sit in the case, has filed his written findings in the suit with the clerk.

The business men of this city were interested in the news that the Riggles-Bickley suit in the United States court had been decided for the complainant. All local interests were with the defendant. More than a decade ago Ruggles was known as a generous and public-spirited citizen of the city of Manistee. A public bath that he instituted was the pride of the northern lumber city. Suddenly there came a change. Someone told Mr. Ruggles that he was being hooted by the people and that he had better leave town to escape the vengeance of people who told sensational stories. Ruggles went away and for years did not openly visit Manistee, his business being conducted by the Buckley & Douglas company. [DFP-1903-1024]