Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-07-04
an OFFICIAL UTVlAACI.
THE DIRECTORS SPEAK ron THEM
SELVES.
Address Of the Board Of Dfrsstoss % -
Gordon Land Company 70 the ssssehsss'
ers-Ths Facts Itecsted.
Tn, oyuc, or rnr Gospoy LAND Co, !

unanimously adopted;
TO the SsoekAsliersa( the Gordon Land Cos~tssys
Al recent meeting Of some of the companys
stockhdders held In Richmond, commtsSe ~
nrpolpted 10 como to Gofdonsvtile 20 ioo. eSxx esxx
tho affairs Of the company. Iney s,'c ,sSs ~
next morning at 5 O'Clock, their mvestixesSas
such as Il Was, being made between suppossnSS
and oclock as night. Such directors - ~. ~
present Afforded the committees evcfy tsc,nsy ~
their power 10 make fun investigator
OF the conpany's Affairs and pfoscs*eo Dcss
earnestly against their leaving w1snoQs uvstY
more than hurredly slancsng ever pss c.es - sSs sS
companys iands sufficiently 70 ascctem ~ ~ ~
tent aud character Of the Improvements msoe
and the Industries located thereon, oct tnc co.-
ml,tce stated that they deemed further exame
nation unnecessary and several OF tncm "a
pressed themselves as satisfied With the coodI-
ton OF the company's affairs. Inc nhocsus
could Of course but conclude that nsm rspos s.ss.
would be favorable. One Of tho ccmmisssS
promised ~ send copy o. ms" vrT
10 the board before submitting u 70 uno
meeting. They returned 70 kichmono, ms.S ne ,c,s
report to their meeting without aosce 70 mi
board. COPY Of which report tcis poeru o.
never yet been able get hold OF bus on tne nexS
day-to wit, June 20, 1S9i-thc Richmond 1--WE
published an article purportns 70 Huo 49,
thority said article was puoiished thas ppasx
does not know, but u contained statemcuS -.
charges affecting the integrity Of ms .as1
'----'
foundation In truth.
This company was organized on tho same prtn-
ciple on which nearly every land company ID sne
state II based. That there were promoten N
the common accepiatlon OF tho term, and thst
they made profit, was matter fuliy diseioseu
by the records Of the company and OF she County
Court: IL was openly and freely spoken Q, non os
the inception Of the company, and, IL is believed,
that there Is not single stockho'der but unuer'
stood ali along that the promoters OF this com
psny. as Of all other companies, maze q pronts
4 ~. .l.,faf
moters have had 10 spend a year OF time and
labor in q business out OF which they wefe T"
make nothing!
The original cost OF land conveyed by Linncy.
trustee for the promoters, TO the company was
SI35, 900, and OF tho lands on which De con-
veyed options, s33,000-total, sl0s,o0o. Inese
lands we're conveyed by the trustee TO tne CON.
pany at an advance OF SlJO.OOo. whefeoi
s67.O 700 was paid Ia stock cf the company, and
$4,000 In its bonds. This constituted the prons
OF the promoters-originaly l3, now ~ ~ ~
number. OF the $4,000 Of stock SoZ,tVo
has been voluntarily exchanged VIVA
the company for lands that did NOT co.'s
the company $4,000 with all Improve.
monts added OF the s63,0OO OF bonds, most OF
which are long past due, not one cent has ever
been paid. except that 1920 thereof as crcdited
TO one promoter some stock eupscftpeu "
him: the residue of said bonds have never been
used or disposed OF by the promoters IN any way
except To hypothecate them To raise money tvr
the compsnys uses, for which the promoters
personally bound themselves, 20 asto cnaDtc tno
long as possible. without being compelled 70 sell
their stock or sue them. over ST., 600 has been
IN this way raised for the company 10y the promo
ters, really for the benefit OF the donnquent
stockholders OF which amount over $4,000 SUI
remains unpaid by tho company. UP 10 tho
present time, except 500 credited on one prt
moters subscription, not one cent OF money nss
ever been received, directly or indirectly, ~ tno
promoters from the company on account OF Their
said pront, and the entire amount OF promote,s
stock now outstanding aggregates oniy
lands OF tho company arc moreaged
for any amount except what II coyefcd oy
tie balance Of tho purchaee-money due
thereon by this company; nor Is u true tnss tnis
company has applied any moneys To make pay"
ment on any OF the lands out OF the order Orig.
nally contemplated and provided Tor; nor is "
true tnat when the sock OF the company
IL paid up II will not DO api' 70
give a title 10 its lands. Not one cent
OF money has been paid out 0n commissions
directly or indirectly more than the regular com.
mission OF 10 per cent whereof per Sena a., -
the second and third nstalmentso of $40 por snare
paid by the subscribers
OF the total amount received by the company
from stockholders 10 date, she books show mo
following principal items % dsbrrseinenfs IN
round numbers: Land purrhfsed, ssa'oov
commissions, 100000: industries, SlO,o0O;
| salaries. $4,000; improvements, so,ooo: inci-
dental expenses, "a. 500; furniture and fixtures,
s45O: engineering, st,01O: and not one cont 70
the promoters directly or Indirectly, though long
since past due 90 them. The O0O0 paid Tor com.
missions Is 10 per cent. ON 100000, part OF tho
capital stock, while as yet only 30 per cent
thereof has been collected.
IL IA not true that The promoters or any OF
them have only paid s5 per share on stock SUB
scr1bed by them but on tho stock referred 70
they have paid up 20 the lot drawing oil tho AS
sessments as they regularly fell due, being 70
per share every sixty days
IL Is absolutely untrue that the Board OF III.
rectors voted large blocks, or any amount OF
stock TO tho promoters In any way, either With OF
without consideration. That as 10 the eIo,oOo
subscribed In the aggregate by some o. the pro-
moters IL IL not true that tho Board OF Directors
released snch subscription. The subscriptions
were made conditionally and before tho conii-
tlon was performed or the stock-books
closed they were withdrawn. Although the
Board Of Directors believed, and sttil
believe, that the said subscribers had
right 20 withdraw, they, out OF abundance
Of caution, declined 10 take any action re-
leasing tho subscribers, but spread upon their
minutes fun statement OF the whole anair,
and referred any action thereon 90 the next regu-
lar meeting Of the stockholders. II Is not uuo
that the directors provided the salaries 10 ths
officers, but tho same were provided for BY n
meeting Of the stockholders, tho only body
legally authorized 10 act The limit nxed
by tho stockholders for tho aggregate Of AL
salaries TO be paid during the year was 10000.
The salaries as actually liked were considerably
less than that amount the salartes as actually
paid TO date aggregate $4,000: this Includes IA
full the services rendered by the president, vice.
other committees, general managers. coinpanys
attorney and Board OF Directors from tho 18Th
of September 10 tho present time.
Nearly all salaries for the past ffye months arc
unpaid, tho oiYiccrs having deferred collecting
them for the company's good, nor has tho ncces-
sary travelling expenses OF the directors been
refunded 70 them, Notwithstanding the fAct thas
at least four Of them have for months given their
entire exclusive time TO tho services Of this COM
pany,
Il Is not true that any oficer has been assign.
tors each have performed the duties OF two or
three Offices, for which service In each case one
salary has been assigned, but Vas 20 for been
paid 10 them In part only.
All of tho above facts were easily ssccTtainabi0
from tho company's records by any COMMITTEES or
person who would take the time 70 ges AZ mo
truth. This board has never said OF done any.
thing TO conceal from the estockhoiders sny @ inc
affairs OF the com pany but on the contrary has
repeatedly invited and urged the stocxhoidess 10
visit the company's ONCE and property, and tn-
spect its affairs, several OF the directors having
frequently offered prominent stocsholdes 70 de-
fray out OF their own pockets the expense of such
visits
Tne board now demands an investigation BY
the stockholders Of tho Affairs of mo company
and the ground Of tie complaints and charges
referred 20. and for that purpcee have called .
special meeting Of the stockholders 70 DO held on
August 8, 1891. The affairs OF tho company
were In the most satisfactory CONDITION, ~ tno
board Is prepared to prove, when tho Aforesaid
unjust attack was made upon the management
by parties believed 10 be Inimicai 70 tho success
OF this company.
The stockholders In general not knowing bow
much credence 10 give 70 said charges. especially
as they purported to come from seommittee Who
claimed TO have made thorough AID careful
examination OF tho company's affairs natofcny
became alarmed, and refused 70 pay any fnr'
ther on their subscriptions untE general siocks
holders meeting; and thus are all the snairs ~
tho company brought 70 Q ssand-selii, pofsus
contemp plating investing In and upon rs propeoy
scared Oh, and great enterprise involving many
hnndreds Of thousands OF dollars with every
proc epect of success has been tom potaruy coecxe9
by this uniustinsble and unfounded sftack ~
Its enemies ...
Tnis board does not wish IN any vsy V dicsese
TO is stockholders, but as many OF them sro W
teresfed In tho success or failure % tnD opns
pAny the board earnestly urges that thoy aS.ou9
said stockhclders' meeting on Auguss ., lsyi, e
send their proxies; and that In justice 70 snem'
selves as well a. % this board. they INFORM snem.
selves accurately before they take aclt'n -
that they sec that any future Coninitsee o. InvsS
tiestIon bs composed Of men Who VIII tako w.
tune and trouble 10 ascertain tho faess oe'os~
they undertake 10 report them.
Respectfully, n~~r>ea
Tue B0AxD 0s DfE4cTokS OF tns
LAND COMPANY. y 8 /.