Evening star., 1897-03-06
SALE OF A PAPER
MIR. Stilson Hutchins Sorry He
Bought The Times.
WANTS TEE CONTRACT RESCINDED
Charges False Statements by Mr..
G. G. Conn.
THE CORPORATION STOCK

Stilson Hutchins, owner of the Washing
! ton Times since the 18th of last December
| today filed bill in equity against Chas G.
| Conn. the former proprietor of the paper
| and jackson H. Raiston and Fredk. l.. Sid
| dons, trus tees. to rescind the contract for
| the purchase of the paper last December.
| MI. HutchnS also prays the court to re-
qulre reconveyanCe to him of sublots IL
| and II. and the west 10 feet inches front
by depth of lot 15 square ODD. and to re-
qu1re Mr.. Conn to surrender to him a note
| for SIG, 1865, secured by a trust on part of
lot IL, square $50. premises 1216 and Icls G.
street. as well bond in the penalty of
! 100000.
Mr.. Hutchins advised the court that he
tenders himself ready and willing to re-
assign and deliver to Mr.. Conn 9.32S shares
| Of stock of theWashington Times Company
two promissory notes. of S156S and S119.-
32S.S5, respectively, and in all other re-
sDects restore Mr.. Conn to the same former
conditions as though the contract had not
been executed.
Mr.. Hutchins also prayed the court to
eLJo1n Mr.. Conn from diSpoSing of in
cUmbering the real estate conveyed to him
by MIR. Hutchins and from disposing Of the
note Of Si6.666.66
The Original Incorporation.
In his bill of complaint Mr.. Hutchins
states that June 1S, 1894, Mr.. Conn and five
others were granted charter of incor-
pcration at Alexandria, Va under the
name of the Washington Times Company
and they established here the Morning
and Evening Times the capital stock being
$5o.oOo. OF shares of $40 each, Conn being
the holder of a majority proportion CT
the stock. and being president of the COM
pany. September II, 1898, the crpitaI
stock was inc.eased to $50 600. Conn being
n tod Char
Mr.. Conn, says Mr.. Hutchins, advanced
various sums from time to time, the corpor-
alton becoming indebted to him in the sum
of $12O, ,S!H.S:s. represented by two notes
dated July 3, 1896. payable to Conn, one for
s1,btS and the other for S11932S.S3. the
| notes beirg secured by a chatteI deed upon
the assets, effects, franchises, etc, of the
corpora ton.
Thereafter, states Mr.. Hutchins. after
considerable negotiation and discussion he
and Conn contracted in writing whereby
Conn sold and delivered to Lee Hutchins
as th. agent and representative of his
father, the 9,:,2S shares of STOCK and in
dorsed without recourse the two said notes
OF the company and delivered them to the
said Lee Hutchns, Mr.. Hutchins senior
transferring the said real estate to Conn,
together with the note of S16.6G666 and
trust on said hot 13 square 2S9.
MIR. Hutchins says he also gave a bond of
$4,000 to indemnify and save Conn harm
less any amount he Conn might be re-
quircd to pay upon obligations or contracts
entered into with debts owing the Par
sons Paper Company. the wilder company
and the Potter Printing Press Company. to
the extent of S2S.312.50 as well as against
any loss or liability under a lease with
Daniel Loughran for the building al south
west corner of Pennsylvania avenue and
10th street.
Mr.. COnn's Statement.
Mr.. Hutchins states that Conn represent
ed to him that while he owned 932S shares
of the companys stock. SD shares were
held bv residents in small amounts, and
g. l33 shares had been issued to local mer-
chants on account of advertising, s. 10
shares remaining in the company's treas
ury unissued and against which no claims
of any kind existed, and subject to the
uses and purposes of the company
Mr.. Hutchins says that Conn also repre-
sented to him that 9.32S shares constituted
a majority of all stock outstanding, and
that the stock outstanding was all to
which any persons We're entitled. Also
that the 6.135 undsposed shares and about
$l2.OOo due and owing the company by the
merchants holding the capital stock con-
st:tuted material parts of the assets of
the company.
The real estate conveyed by him to Conn.,
says Mr.. Hutchins, worth at least
slC0,0O0. while the assets. &c, of the com
pany was not a fourth great, the stock
and notes he Hutchins) received possessing
a substantial value so long as he possessed
a controlling interest in and majority OF
the stock.
Mr. Conn. so Mr. Hutchins says, did not
wish 1t known that he contemplated SELL
ing, and declined to allow an inspec ton of
the 'company's books or papers. or con-
ference with its officers, submitting for in
spection an imperfectly kept minute book
Therefore, explains Mr.. Hutchins he
was forced to rely upon Conn's representa-
tions in the matter. Believing them to
be true he made the contract. Neverthe-
less. he says, representative of local
merchants who had haon
tensively in the Times informed him last
month that in August. 1895, Conn, presi-
dent of the Times Company, entered into a
contract with them whereby in considera-
| ton of their advertisements in the Times
Conn agreed to issue to them as many
shares of stock in the company as should
amount in dollars to the sums expended
by them in advertising in the morning and
evening editions of the Times, said stock
to be fully paid up and worcestershire and
to be issued in shares of SO each imme-
diately upon the completion of the adver-
tisement.
The merchants so contracted advertising
in The Times extensively and becoming pos
sessed of very large number of shares of
stock, 6,135 In all.
In Minority.
The representative of these merchants
Mr.. Hutchins states, so informed him the
latter part of last month"; telling him that
the contracts were made at time when
lHe Capital STOCK was OUT $ou,tU, ana tnat
they were entitled to now upon the in
crease of the capital to $250.OO0, to five
times much stock, which they demanded
of him, says Mr.. Hutchins, threatening
immediate legal proceedings to enforce the
demand, and at the same time withheld
payments aggregating mary thousand dol
lars due the company, representing ma
terial part of the assets mentioned by Conn.
Believing representations of Conn., Mr.
Hutchins declined to recognize the de-
maEds of the merchants, but. neverthe-
less. he says, he learned Tuesday last for
the first time that it is true that the in
creased capitalization was made subse-
quent to the execution of the contracts
with the merchants-that is, September
Il, 1895. He then informed the merchants
that the undisposed stock in the company's
treasury Is not sufficient to satisfy their
demand. whereupon they demanded that
the said undisposed stock be apportloned
among them, a righ. to which Mr.. Hutch
ms admits they are entitled, and were
when Conn sold to him.
When that is done, says Mr. Hutchins,
he will hold a minority Of the stock. will
no longer have controlling interest there
in, and will no longer be able to properly
protect his property and interests. He
says that Conn's representations to him
were wholly false, fraudulent and untrue,
and that he was thereby misled and de-
S-<> 1,,xo