The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1894-03-30
FRAUD ALLEGED.
Injunction to Restrain Action
Against South Salem Land
Company stockholders.

The stockholders of the South Salem
Land Company, representing about z, 900
shares, who reside in the counties of
Culpeper and Fauquier, yesterday ap.
piled for and obtained from Judge ii. ~.
Blair an injunction restraining the
sheriffs OF these counties from further
proceeding under executions which were
issued under decree granted in tho
Roanoke county circuit court at the
January, 1894, erm, against stockhold-
ers in these counties, until a further
order Of the said circuit court. The
stockholders joining in said proceeding
number about sixty.
The grounds upon which said injunc
ton was prayed for were that said
stockholders were taken by surprise,
they having, as they supposed, provided
counsel to defend them, who did not
act. Various other grounds relating to
the formation and conduct Of the com
pany are alleged as reason for q re-
stock in said company, whose lands
have vanished under a prior deed of
trust, and there is now nothing left OF
the con- pany except it's name and liabil-
tiles.
1t is centended by said stockholders
that as said company had guaranteed
both in its prospectus and by It's author
lied agent, lily. G. Stewart, Of Russell
county, that no more than 80 per cent
of the par value OF the stock would or
could be demanded; that the company
mad no right to ask for more.
They further allege in their bill that
all the stockholders were not, as they
should have been, made parties to the
suit, that j. I. Crabtre 1.-THE late presi-
dent of said company furnished list
covering over 5000 shares OF stock, con-
tanning the names of many subscribers
who have made no payments on their
descriptions.
They also allege that the Misses Jack,
the original owners of land of said com.
pany and also holders of GOO shares,
knew, as other stockholders knew, that
only three assessments would be called
for and are now estopped from setting
up any demand against those who have
paid 30 per cent so far. The knowledge
OF the same facts are alleged to have
been known by the Pittsburg Bridge
Company and the Bank of Salem (also
creditors); the latter having notice by
a. M bowman, one OF the promoters
and an officer of said company, and
director OF said bank; and that all offices
were in same building.
Their bill further alleges, sit would
be useless to multiply words by en-
deavoring to show knowledge upon his
81. t. Crabtree's) part, of the conditions
upon which this stock was subscribed"
the said "Crabtree being chief promoter
and president OF the company, AMI was
virtually the company at the time the
company was formed and prospectus
issued"
The bill further states that they (thc
stockholders) were assured by the agent
that 1.-THE only promoters fund was
$4,000 paid up stock and tina. this WAS
to be used in paying commissions for
placing stock and for other expenses"
whereas lit is now admitted that Messrs
Crabtree and Bowman received $4,000
in cash, which should have gone toward
liquidating the legitimate demands Of
the company. and but for miscalcula-
ton this sum would have been increased
to $4,000" and they aver that there is
at least sufficient evidence to connect
the Misses Jack with the fraud, who
were, in fact, the instruments by which
the same WAS made possible. Not only
j. L. Crabtree and A. M. Bowman, but
the Misses Jack should individually be
held responsible to tho stockholders for
the said sum of $4,000"
The bill further states: ct appears
to be strange fac:, though fact
nevertheless, that the president, direct.
ors and promoters OF this company.
from whom the stockholders should ex-
pect at least some help and assistance,
have deserted them IN their trouble and
gone over to the enc n.y."
The injunction was granted by Judge
Blair upon complainant s or some one for
them giving bond or bonds with good
security in penalty of double the amount
OF the judgment and costs. The stock
holders of the South Salem Company
EN- brace many OF the prominent men in
Piedmont Virginia, including United
States Senator Martin and Eppa Hun
ton, Jr.
California Excavations.
The we'll known Phillips Excursion