The times. [volume] (Richmond, Va.) 1890-1903, 1900-08-28
DIRECTED not
TO BRING SUIT
Receiver of the Virginia Steel, Iron
and Slate Company Enjoin'ed.
A REMINDER OF The BOOM DAYS
Three Hundred Stockholders Are
Interested in an Order Entered
by Judge Lamb, of the
Chanccry Court.

A great deal of interest is being manifest
ed in the order entered by Judge Lamb,
Of the Chancery Court OF Richmond, in
vacation, directing w. D. Cardwen, re-
ceiver for the Virginia Steel, Iron and
Slate Company, not to bring suit against
the stockholders Of that company until
the further order Of the court. The con-
troversy is an important one, especially
to the three hundred stockholders OF the
company.
On July 31st Receiver Cardwel sent
out a circular letter to the STOCKHOLDERS
in which he said:
LAS Receiver of the Chancery Court OIL
the City of Richmond, in the SUIT u
Flournoy VS.. Virginia Steel IRON ano
Slate Company, nave oeeh uire9teu ,o nS
decree entered in said suit July II, 1871
to collect from each of the stockholders
of the said company a call OF - per
cent. of the stock held by them, respec-
lively. You will find upon the back OIL
this letter an extract from said decree,
showing the call made by the court anu
my authority to take lesa' proceeuiaSs
against you, if the same be not promptly
paid.
you appear to be the holder of -
shares The amount due by YOU. there
fore is the sum of s.. Please remit
the same 10 me at my office as ABOVE
indicated. Unless 1 hear from you prompt
", it will be my duty to BRING suit
against you for the above amount.
Later on Mr.. Cardwell sent out the
following to each stockholder:
"N1v circular letter of the 2Sd instant.
seems to have been misunderstood by
so many of the stockholders that l have
determined to mail to each OF them the
following statement of the fncts n the
case.
STOCK APPORTIONA1DNT.
1.-The original subscription to the stock
of the company was on the basis of 500
per share. At a meeting held at How
ardsviHe Va, December ID, 1880, con-
tract WIS made with the promoters OF
the company, agreeing to give them tor
the options which they turned over to
the company 500. 300 of paid-up stock, and
100000 IN money. This contract was
voidable because a majority of the stock
was voted by the promoters holding
proxies of absent stockholders, and as
soon as the promoters or a large ma
jorty of them had their attention called
to this fact, they agreed to modify the
contract. For this purpose a meeting was
held at the Exchange Hotel in Richmond.
Va. August 8. 1891. which was adjourned
to August 81. 1891. at which a new con-
tract was entered into by which it was
agreed that the promoters were to receive
$4,000 of paid-up stock in lieu of all their
cnimS under the original contract. and
also that the subscribers to the stock
should not be called on for more than Si5
per share and that the promoters should
stand upon the same footing as sub
scribers who had pad SIS per share. This
new contract was, of course, good as be-
tween the promoters the company and
The stockholders, but was not binding upon
creditors who had no notice of it a the
time they contracted with the company.
The present call of s32 per share is against
all of the stockholders of the company.
including the promoters who participated
n the meeting in August, 1891, at which
the new contract was agreed to. The
Chancery Court here has passed upon all
the principles above set out in the suit OF
Fournoy vs.. Virginia Steel. Iron and
Slate Company. which WIS instituted in
July, 1892 and to which you are a party.
And the court has also determined that
the - per cent. call is necessary to pay o
balance of about $4,000 of debts of the
company the most of which indebtedness
consists of purchase-money notes for land
bought by the company on credit,
Il shall not institute any suits before
August 16 1890 but unless the amount
specified in my letter Of the 23d, instant,
is paid on or before that date, with in
terest from July II, 1900, I will be obliged
to proceed with the suits
This company was one of the many
organized in boom days. The stock
holders are resisting the efforts made to
collect from them money to pay off the
indebtedness of the concern.