Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-11-09
ANSWER TO ALLEGATIONS
DISTRICT TITLE COMPANY REPLIES
TO STOCKHOLDERS COMPLAINT.
Denies Charges Contained Therein
and Makes Counter Statements
in the Premises.

The answer of the District Title Insur-
ance Company to the suit entered against
it by w. Mosby Williams, a stockholder,
praying for the appointment of receiver
to take charge of the affairs Of the COM
pany, was filed yesterday evening. 1t was
sworn to by w. l. Newton, president of
the company. After denying the allegation
of the complainant that the company had
been operated at a loss ever since it's or
ganization, it proceeded as follows:
shortly prior to December 1899, up to
which time the company had been operated
at loss, in order to prevent such loss and
to put the company on a paying basis, if
possible, the board of directors made
change in the officers, which resulted in an
immediate large reduction of monthly eX
penses and gradual increase of business,
SO that under the new management the
company has been operated at a profit
Condition of the Company.
Continuing, the defendant denies abso-
lutely that the capital stock as it now ex-
lists has been greatly impaired and de-
cares that, on the contrary, it is today. so
far as the actual value of it's plant and
other assets are concerned, as shown by
actual cost upon it's books. in better condi-
ton than 1t has been for several years, and
it's statement at the close Of business on
October 81. 1900. shows surplus over
every liability known, including capital
stock, of several thousand dollars 1t de-
MES that the total value of the assets of
the company considered as assets of a
title insurance company is below the par
value of the stock.
Other Allegations Denied.
Answering that portion Of the complaint
which says that the complainant had just
learned that It was the purpose Of the Off
Z ha
the minority stockholders by threats of
forcing the sale of the assets and buying
them cheaply as possible and then en-
tering into any form Of insurance surety
and guarantee business. without regard to
the charter powers of the defendant as at
present constituted, the defendant says that
If complainant had learned anything of
the kind his informant has not the shadow
of fact to base such information on, and
absolutely denies any such purpose, or the
discussion or even mention of anything that
could be construed into any such pur
pose, and declares as a matter of fact that
no officer holds more stock now than when
he assumed such office.
The defendant admits that Mr.. Williams
is the record owner of five shares of the
company stock of the par value of 500, but
declares 1t is credibly informed and be-
lieves that he does not hold the certificate
for the same, but that such certificate has
been pledged by the complainant for more
IMAM IL Will sell Tor.
The defendant further says that since the
change of its officers, heretofore referred
to, the affairs of the company have been
conducted economically and are now being
conducted profitably.
Its board of directors Is actuated by
desire to promote its efficiency and In
crease Its business, and its prospects for
doing a largely increased and profitable
business are very encouraging, eXcepp so
far as the same has been and may be in
juriously affected by the filing of the bill
of complaint in this cause.
Alleged Course of Complainant.
"And this defendant believes" says the
answer in conclusion, that said bill was
not filed In good faith or with the slightest
expectation of obtaining a decree in ac-
cordance with the prayers of the bill, but
was filed for the purpose of forcing this
defendant to pay an extravagant price for
said five shares of stock, and in this con-
nection 1t shows unto the court that COM
plainant has not caused process to be
served on this defendant and that the COM
plainant, w. Mosby Williams, came to the
office of the company, stated to the presi-
dent of the company that he had bill pre-
pared to dissolve the company, and asking
that receiver be appointed; that it was al
ready sworn to by himself and signed by
John Ridout counsel and that before fill
ing 1t he had concluded to offer his stock
amount that he paid for It in 1892, and $50
more, which would be about the amount of
Interest an dcounsel fee, the amount Of
which was not stated, and upon the refusal
or the president to comply with this eXtor-
tionate demand said bill was fled