The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-03-04
Leads all hCarolinsD 8iesin News and Circulation

u NAT III Wow OF lllS OHtt anu VI
the other matters alleged in this para
graph, the interest of all stockholders
| demand that the affairs Of the American
Tobacco Company be wound up and its
property sold, because:
, /. There is an offer by q solvent party
TO pay Il fair price for the property. In
order to show it is a fair price this para
graph alleges that ]. s. Carr. the presi-
dent and owner Of about half the stock
of the company from its organization.
). II. Austin, its vice president. and
every other officer and director, and Il
great number of stockholders, in De-
cember. 1888, sold their holdings At
ST. a share and that this offer of the
American Tobacco Company guarantees
to the uniformed and smaller stock
holders fully this am0unt-the judg-
ment of the larger stockholders on the
value of the business.
,. The sale as prayed herein can do no
harm for the court couldn't be bound
by this offer but would put up the
property to the highest bidder at a
guaranteed upset price OF $2.S00000.
3. The plaintiffs holding more than 80
per cent Of the stock want their invesc-
ment out, and half of the remaining
one per cent are not capable OF con-
Quoting the business, because their in
ycstment is inadequate and there is no
one among them with any practical
knowledge OF the tobacco business.
i. The stock is not listed on any
exchange and has no market value and
the plaintiffs cannot withdraw from the
corporation by sale Of their stock with
out very great loss; that by IA sale as
prayed III this bin the plaintiffs would
receive $2,10S,000 for their holdings.
whereas if they tried TO sell it they
&C tainly couldn't get over S200,U00:
That this same condition applies to Hi
other stockholders; that if plaintiffs pun
their stock On the market .he other
stockholders could not sell thrir hold
ings ut all.
.. That the interest and iaycstncnt
Of the plaintiff stockholders are mCnaccd
by Il threat on the part Of w. \. (rGth-
RE, the holder Of one share of stock of
said company; he purchased this one
share after the plaintiffs had acquired
more than 80 PEE cent OF all tae stock
OF said company, and when he Guth.
r.el had no interest in the corporation,
and was purchased by him TOR the pur-
pose Of doing all in his power to harasx,
annoy. veX, and. perhaps. make imposSI-
bic the management Of the business Of
said Biaclwel.'S Durham Tobacco Com
pany; the said Guthrie Is LAWYER
and politician Of more or less pro.n,-
nence in North Carolina and he has
caused to be published in newspapers
IN Moth Carolina an advertisement ul
his purpose to cause the introduction in
to the Legislature, at its session begin
ming June -. 1909. Of a hill to repeal
the charter Of the said Blackwcn's Dur
ham Tobacco Company and to appoint
trustees to wind mp the affairs of said
corporatiCn.'
IA copy Of the News and Observer
containing the repeating statute n. o.
posed by Maj. Guthrie together with MS
interview ana advertisements is attached
here for the information Of the court.
The attack ON Maj. Guthrie then con
tinues: That the investment of the
stockholders would be rendered compara-
lively valueless, or at least much less
valuable than at present by the pro-
posed legislation. for the reason that u
great deal of the value of said stock
comes from the value Of the brand "Rnr
ham Bull'' owned and controlled bv said
Blackwell's Durham Tobacco Gonna \.
ana the good viii of said business: and
while the brand and good Will are now
of very great value, they would net DE 81
after the business had been run and
conducted for even Il little while b.,
trustees such as are mentioned in said
bill proposed by said Guthr.e-trIiStee
entirely incomT etent for the conduct OF
the business, unfriendly to the int est,
IL, IL ,.1t.I
owing their appointment, and therefore
allegiance, to one who desires, and put
liciy and SYSTEMATICALLY desires, the de-
pletion and destruction. instead of the
enhancement and protection, OF the prop
erty Of said Biackwelrs Durham Toba co
Company the investment Of your orators
and the other stockholders; that y0nr
orators hesitate to believe that the Leg
islature would pass a statute so unju
As that mentioned in exhibit A News
and Observer February 20, 1901 here
to. especially when its introduction and
promotion are induced by such unworthy
motives as those ayoWcd by the said
Guthrie, the promoter thereof, but your
orators nevertheless desire to call to the
attention of the court that the said
Guthrie is, as heretofore said, a politi-
clan of more or less prominence, with his
present affiliations, perhaps with that
political party at present dominant in the
Legislature of North Carolina: that there
exists III North Carolina at present pre-
JUDGE against the Rlaclzwen's Du ham
Tobacco Company, and against, indeed.
all corporations, and especially all large
corporations, which prejudice has been
created, and so strengthened by partisan
newspapers and other political influences
ms to make the passage OF the bill men
toned not altogether unlikely; that en-
account of the extreme sens.tvenesS to
injury of a great deal of the property be
longing to said Blackwcll's Durham To
bacco Company, TO wit. the trad mark
and good will of said business. the said
menace is serious one, and as your ora
tors are advised. believe and insist to this
court this menace alone would authorize
this court to the exercise of its equitable
jurisdiction. to the end that the property
Of the said corporation should be sold
at the highest possible price and that its
affairs, pending such sale. should be run
and conducted so as to enhance as much
as possible the value of the property of
the said corporation, and the consequent
value to your orators. and the other
u. I'LL !. |.