The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-03-02
a NOVEL slit
An Attempt to hold Il stockholder
Liable fsr a Compeny's Debts.

Liable fsr a Compeny'5 Debts.
From the Rome (Gd.) Tribune.
Another sensation has developed in the
rolling mill case.
The Cotton Tie Company's affairs are
again figuring in the courts. and this time
the litigation is for very large sum, aud
the allegations made in the creditors petit
| ton filed Saturday give new turn to the
whole matter
The new proceedings aim to make Jack
King individually liable for the debts Of the
Rome Cotton Tie Company, which corpora
ton is alleged TO have been organized be-
fore the capital stock was subscribed and
paid in.
On Saturday afternoon Messrs. Hoskinson
q Harris filed petition Rmendatory of tina
bill Of the STANDARD Oil Company and
others against the Rome Cotton Tie Manu-
featuring Company. In it the PRAYER is
made that the amendatory bill be CONSOLE
dated with the original bill, and that the
receiver heretofore appointed be authorized
to operate under the amendatory bill as
we'll as the original.
By this bill it is charged that on the or
ganization of the Rome Cotton Tie Manu-
featuring Company no money at all was
paid IN by the stockholders, and that the
| stockholders are liable personally TO the
| amount Of the minimum Of capitalization,
which, it Is alleged, was 500, 900
1t Is also charged concerning the S10.0S5
received by MIR. King, president OF the COM
pany, under the nume of salary, after
twenty-one months operations, thar the
| company never did authorize the payment
of this salary, and that they never had the
! right to authorize the payment of the SAL
airy.
1t is charged further that several thou
| sand dollars were paid out by the officers of
the company for debts never contracted by
the Rome Cotton Tie Manufacturing Conn
pany. 1t seems to be left in doubt as to
whom these payments were made or for
what they were made. By the bill Mr..
King is held individually responsible for all
| these payments, and it may be that other
parties defendant will be brought into the
bill.
The petitioners ask for the appointment
OF an auditor, ana the examination Of &C
counts, for judgment to the amount of
5000 or O,0OO for creditors named in
the petition, and for a decree against Mr..
KING for the amount claimed n the petit
| ton.
The point of attack Is the claim that the
minimum of the Rome Cotton Tie Com
pany's capitalization under the charter was
| SOC, 900 and that the stockholders are indi-
| vidually liable to that amount. The claim
is also made that the stockholders sub.
| scribed $24,00 and never paid it in, and
that they are individually responsible for
that amount. The subscribers to the stock
| were:
James Cartwright .........'...~... so shares
| J. King OBSERVATION-DISCLOSURES. 1859 "
| H. 1. roucne.'s ......'...........
The petition was filed by Hoskinson &
| Harris as associate counsel for claims
| amounting to $4,000 or $4,000, repre-
| sented by Watkins & Boyle and Pritchard
and Sizer Of Chattanooga and McCutchen
& Shumate Of Dalton. The parties suing
are large corporations. who have sold goods,
supplies or raw material to the Rome Cot
ton Tie Manufacturing Company. Among
them are Rogers, Brown & Co. of Cincin-
natl, the Black Diamond Coal Company,
the Cltico Furnace Company, the East
Tennessee Mining and Manufacturing Com
pany, the Etowah Mining Company, the
Alfalfa Mining and Manufacturing Com
pany and the Rome Iron Company.