The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1890-08-07
SnOe Factory.


An adjourned meeting of the stock
holders of the Staunton Shoe Factory
was held in the factory building Monday
night. A large number of stockholders
were present. The board OF directors
held short meeting in the office of the
Staunton Development Company, after
which Mr.. NJ. E. Miller called the stock
holders meeting to order. Messrs. j. ID.
Wayt, J. H. Blackley and w. H. H.
Lynn were appointed committee to
ascertain if majority of the stock was
present. They reported ST. shares rep
resented, 1885 by proxy and 49s in person,
4S7 being q majority. The reports of
the board as made to previous meetings
were read, showing that the operations
of the past twelve months had not made
made money for the stockholders. 1t
was the result of these reports which
occasioned the meetings, of which the
one Monday night was an adjourned
meeting.
Mr.. A. G. Braxton, ON behalf of a ma
jority of the board, submitted report
concerning the recommendations from
the board to the stockholders. He said
various plans had been discussed, and
some of the board were prepared to sub
NIT minority report. The report was
as follows:
To issue $25,OO of stock, to be known
as preferred stock, to be fully paid up in
ten months, the preferred stock to be
entitled to dividend not exceeding 6
per cent. out of the net profits of the
factory. All over per cent. to be dis
tributed equally between the holders of
preferred and commonstock,S The right
to call in and pay off the preferred stock
after five years. Tn the final distribu-
ton of assets, the preferred stock to
have precedence over the common stock
after the companys debts, no DISPOSE
tion to be made of the plant of the fac
tory except by the exclusive action of
the holders of common stock. The
amount to be paid in salaries to be
limited by the action of the stockhold-
ers' meeting. The amount for salaries
was afterwards fixed at $4,000, and the
proposition to sell the factory building
and move to cheaper quarters was with
drawn. 1t was afterwards agreed that
the present factory site shall not be
changed except by the action of the
present stockholders. In placing the
preferred stock, the present holders of
stock shall have the preference.
Capt. James Bumgardner reviewed the
propositions contained in the report of
the committee in.detail. He regarded it
as loan, upon which we would pay 6
per cent. interest if we made it, and if
we did not make it we would not have
to pay We had the right to call in the
preferred stock at the pleasure of the
holders of the common stock after five
years. The holders of this stock could
never demad its payment.
Capt. Bumgardner thought it the very
best plan upon which 10 borrow money.
He said his interest was to keep the fac
tory i'll Staunton and to keep it running.
1t was question of whether the people
of Staunton had the courage and ability
to carry on a manufacturing plant. !.
The proposition was SO clearly stated
by Capt. Bumgardner, that many of
those who were originally opposed to
the preferred stock plan Immediately
withdrew their objections. The safe
guards thrown around the scheme were
regarded as satisfactory.
Mr.. Julius Scheffer opposed the report.
He was in favor of sale, or of borrow
ing the money.
M. f. Peterfish also opposed the re-
port.
j. E. Graham said a great deal had
been said about imposing upon the wo-
men who had subscribed. He would say
for the old women, and old maids, too,
that their voices had not been heard in
this meeting. They were not complain
ing.
Messrs. Lynn and w. H. Weller said
they were opposed to the plan when
they came to the meeting, but they
withdrew all objections and advocated
the plan as reported.
Finally vote was reached and re-
suited for the adoption of the report
yeas, 800; nays, 293.
resolution was adopted, instructing
the board to take the necessary steps to
carry out the action of the stockhold-
ers' meeting.
1t is believed that the above action Of
the meeting was the very best thing
that could have been DONE 1t was
stated that there would be no difficulty
in placing the preferred stock, and
when this is done the Shoe factory will
be on a solid basis. 1t is generally con-
coded that the old board did not have
sufficient funds to make success of the
plant, but with increased funds all these
difficulties will be obviated.
Now that the stockholders have acted.
after full and fair notice, and after full
discussion of all possible plans, we are
satisfied with the result.
The stockholders had right to con-
troll in this matter. They have spoken,
and their verdict is given above. Let
there be not only general acquiescence
in their action, but a hearty support to
the new movement. Then all will be
WELL