The times. [volume] (Richmond, Va.) 1890-1903, 1891-07-03
STOCKHOLDERS WILL SUE.
Meeting Of the Richmond and HarriSonburS
Land Company.
THE CONDITION OF THE CORPORATION.
Counsel Have Been EMPLOYED and n Com
promise suggested-A Lengthy Report
From the Committee Adopted.

A meeting OF stockholders Of the Richmond
and Harrisonburg Land Company was held last
evening al the rooms Of the Bar Association
DR.. J. A. White was on motion Of Mr.. George W.
Mayo elected chairman Of the meeting.
Or. White briefly outlined the purpose OF the
meeting and explained what action had been
taken previously
Mr.. 5. L. Jacobs suggested that the proceed
ings Of the meeting be kept secret. but Mr..
Mayo wanted to have them given as much pub
Lefty aspossible, in that he was sustained by
nearly all tho stockholders present.
AZ previous meeting committee consisting
OF }. {. Chrlstian. Henry '. spencer and Harry
'auston bad been appointed 10 look into the
affairs OF the company. The committee had
only been able 10 gather Information from the
books OF the company. the outcome OF which
was the following report:
Ne find. by reference TO the 6rstmeeting held.
that an option by Rives 1atum & Co. on 40
acres OF land more or less. lying in and adjacent
10 the city OF HarrlsOnhurg, Va. SlfA23 per
ucre, was turned over 10 James T. Vaughan,
trustee for syndicate composed Of the follow
lnR persons: II. J.. PciOuZe, j. ". Nunnally,
dives Iatum, James I. Vaughan, and II. A.
Iabb further investigation was then made
and We find that clear title could only be given
90 3j9 acres Of the said 4l6 acres OptlOned by
lives 1atum 81 20, which option having
been turned over TO James !. Vaughan, trustee,
there was then formed stock company capital
lZed az $4,000 and called the Richmond ana
! IarrisOnburg Land and Improvement Company.
Soon after the formation OF the ompany . was
found advisable ny a majority OF the stockhold,
ers to change rs name 10 the Richmond ana
HarrisOnbuTg Land Company. The stOchhOld-
ers OF the CONF any paid IN, as they claimed 10
James I. Vaughan, trustee $4,000 ia cash. IL
was then found advisable 10y the stOck-
holders Of tho company TO increase the
capital stock 10 s20UOOO. and the stockholders
who composed the company capitalized az $4,000
turned over To the company capitalized al $500
900 the $4,000 in cash. James 7. Vaughan acting
as trustee; and for TINS amount they received
10000 in pal dup non-assessable stock or three
for ono, and the balance. $4,000 or 900 shares
40 the par value go PER share. was then put on
the market. These shares were all taken up 10
be pad for IN installments of 10 per cent.
monthly. II was afterwards decided that only
per cent would De called for monthly and all
payments were made on that basis. As Will he
seen from the original prospectus, they claimed
situated ID the town OF Harrsonburg Va, and
we find that because some Of their agents guar.
antecd TO various purchasers that Onc-half OF
the property was situated in the town Of IIar-
TlsOnhurI. Va, which was not tIue. that the
payments they-tho following persons: J. II.
and David Bailey, y. T. EUerson. J. A. Gill
Bro. H. Heincman. Jackson & Hoy, C. VI.
liainey j. w. Scogglns and c; j. II. Webster
hal made. and who had subscribed for
ninety shares OF stock. were refunded 10
them amounting 70 S5j,I in consequence
of this guarantee made by the agents who
placed tho stock Their prospectus stated that
the whole property was situated IN Harrison
burg. Va. and u was found that by TAR The
larger portion was situated outside the corporate
limits. We find n viii be seen from the state
mcuts VIC herewith submit. That the property IN
reality cost the stockholders SlOi.90.3l. when
their prospectus states that II coat the stock
holders $1,000. and n statement cent TO the
the property cost S.f.l60, when really the
property cost ,as viii be seen by the state
mcnt herewith submitted. with improve
ments added, only S3.Sl5S6. We md.
upon further investigation, that the prop
erty sold az the sale held December ?. 1870,
amounting TO Sio3l5, was sold 20 the stockhold-
art44 hot fl.a4f fnr Of he. at az
33ta per cent. on the dollar, on which an addl-
tiOnal premium OF ~ per cent, making the pay
ments for the property only p cents ON the dol
lar, or the cash value received by the company
$3.50 per share. We also find, viii be seen by
reference 10 our statement. that OF the S3,%j33O
cash balance there IS IN reality only S2V3)l
actual cash. the difference being certificate OF
e. shares OF the original stock IN the name OF J..
W Burwell. valued az 1880 and counted as cash,
button which no cash has ever been received and
this was also counted in the original s80O.D re-
ceived on September 30, 1870, from the FORTY
four original promoters. We find also, as Will
he seen from our statement, that there Is stu
due ON the property three notes of the denom-
inatiOn of s6419g3, amounting 60 sl9,3lA7s with
interest We find that the names OF all the di-
rectOrs are OF those who composed the COM
pany capitalized at 10000
At the meeting held on June 2lst an executive
committee OF five was appointed with Mr.. Henry
Y. spencer as chairman. The committee was
empowered 20 employ counsel to bring suit
against the company II they thought II adylsa-
BE.
in the absence of the chairman Of the COM
mittee Mr.. /. j. Bosher and Mr. =. B. jacobs
made oral statements as TO the action Of the
committee from which IT appeared that the
services Of Messrs Mcclure and Strlngtell0w
had been secured AS to the terms agreed upon
between the committee and the lawyers named
there seemed TO be some misunderstanding, aud
Mr.. Frank Mcclure was sent for.
The latter on his arrival made a detailed state
ment and set forth that be had suggested Two
different methods of procedure. Az first he ad-
vocated united action on the part OF the stock
holders against the COMPANY and IFS promoters.
aud IN that instance he stated that Il counsel fee
of $500 would be acceptable. with al additional
contingent fee II anything should be recovered
Thinking. however, that u might be difficult
10 secure united action on the part OF All the
stockholders he had made another suggestion
20 the effect that II dozen or more stock
holders should he willing TO 20 into court he
WOud take their cases at the rate Of % cents yer
share with the understanding that each stock
holder would agree 10 pay a certain contingent
fee If any money was recovered. Mr.. Mcclure
then explained in detail tho manner IN which
ne expected 10 proceed against the company.
Mr.. Mayo moved that all stockholders present
sign the agreement 10 open proceedings against
Mr.. HudnaH objected against throwing good
money after bad money. and offered an
amendment that committee Of five be ap-
pointed. OF which the Chair should be one, 10
cOnferswith the promoters Of the company and
see whether a compromise could be made.
Mr.. Joseph h. Mon gOmery seconded the
amendment. which he thought would not iniure
the chances OF the stockholders. II they went
be tied up for at least six months. while other
wise is might be possible 20 sell II 20 advantage.
II the attem 10 compromise was frustrated, 10
would be still time 10 bring suit.
Mr. Bosher called attention 10 the fact that
anything the meeting should decide on would
be- useless in view Of the fact thar the executive
committee had been empowered 20 take any ac-
tion they deemed best, and that they had already
engaged counsel
The amendment offered by lr. Hudnall was
lost and Nr. Mayo motion adopted.
On motion Of Mr.. = T. Jacobs Mr.. L. J.
Boshcr was elected treasurer OF the stock
holders
On motion Of Mr. Montgomery II was declared
10 be the sense of the meeting that counsel ef-
feet "a com romi-e II il could be done 10 the
advantage of the stockholders The executive
c0mmi tee who wer continued were requested
10 motif counsel OF the action just taken by the
meeting
he meeting then adjourned subject to the
call of the Chair.
THE TWO CREWS.
The Interest In the Race IL Increasing and
the Men Are Ready.
m