The Washington times., 1902-03-12
DIVIDENDS TO BE CALLED IN
Auxiliary Petition Filed in Supreme
Court of District Results in Captain
Knox Being Appointed Receiver of
Corporations Interests Here


receiver is empowered by the court to
place mortgage upon the company s
property.
Similar Action Taken Here.
The action of Judge Norton, sitting in
the Corporation Court OF Alexandria who
Monday appointed Captain Knox receiv-
er of the companys affairs, with power
to operate and conduct the business in the
State of Virginia. was yesterday made eff
fective in this city by the action of Judge
Bradley of the District Supreme Court,
who took similar action here.
The action of the court was in accord
with the views of the representatives of
all interested in the corporation. the
litigants and the stockholders.
conference of the attorneys for the
different interests was held on Monday.
and an appeal was made to the stockhold-
ers to be patient and await the develop
nent of the plans of the receiver. i,
WAS in this connection that Captain Knox
was named by Judge Norton. of Alexan-
dria County, Va, as receiver for the prop
erty of the kretol Company in that
jurisdiction. 1t is confidently expected
that if the plans of the receiver md lie
representatives of the different interests
r.aterialfze, not dollar which has been
invested in the corporation will be lost
Auxiliary Petition Filed.
The original proceedings against tie
kretol Company were instituted by MIR.
George A. Armes, large stockholder in
:. the company. in which he asked for the
: appointment Of receiver. These p,o-
ceedings were instituted at Alexandra,
Va An ancillary petition was also lied
in the Supreme Court of the District. for
the purpose of accomplishing the same
purpose.
Text of the Declaration,
Attorneys Anderson and Chase. repre-
senting the Kretol Chemical Company.
yesterday filed the following declaration
IN the Supreme Court of the District:
"Reserving the benefit OF all Just de-
murrers to the bill of the complainant in
: this cause and likewise reserving the
beneht OF all just exceptions TO said bill
as well as reserving the right hereafter
ITO answer fully and in no wise admitting
any of the allegations of said bill to be
cal Company comes and says that il is
willing to waive the right to hearing un-
der the rule heretofore issued and CON-
sents to the appointment of receiver and
asks that the injunction heretofore
awarded be now dissolved
Mr.. Ralston of the firm OF RaIston g.
Siddons. representing the complainant
Mr. Armes, stated to the court that the
proposition submitted to the court had
been decided by a conference among coun-
sci for all parties concerned
The receiver is required to give bond
in the sum OF $1,000 for the performance
of his duties.
Dividends to Be Called In.
One of the most difficult tasks that
awaits the receiver is the calling in of
all dividends that have been uulawfulIv
declared, whether in cash or in stock of
the company. Much of this stock has
been transferred from the person to
whom it was originally issued, and in
termirable suits are likely TO occur in
the endeayor to recall this stock. as the
rights of third parties are involved
1t is stated in some circles that should
great difficulty be experienced in this di-
rection the suits may be abandoned and
the directors of the company called upon
TO make good the unlawful misappropri-
alton of tie company's assets This phase |
OF the situation is already receiving the |
consideration of a number of the LAWYERS |
interested.
The all-important nj thing at the present /
time. however. is the resumption of the /
business OF the company. The force OF
employees at the factory will have to be
reorgaDized, but this will occasion but
little delay. as only one skilled chemist
is necessary in the work.
Capacity of the Plant
The capacity of the plant is about sixty |
barrels day. Even with this output. it |
is said that it will require many months
TO fill even those orders which are now on !
hand and to which large additions are be- |
ing made daily. /
In view of the widespread disaster that |
would likely have followed the failure !
OF the present company to resume opera |
tions, and further. in defence of certain
members of the board of directors of the |
corporation against whom unkind criticism
has been directed during the past few
days. Attorney George S. Chase. who prob
ably more than any other person is ia /,
miliar with the conditions of the com
pany ana Its stockholders. yesterday gave
out the following statement:
with more than thousand people di-
rectly interested in the affairs of the Kre- |
tol Chemical Company. many of them to
far greater extent than their limited
means would permit or than they could
afford, there is no wonder that many OF
them have been on the verge OF hysterla.
Did Not Understand Conditions.
Among many OF them there seems to
have been great misunderstanding as to
the actual conditions. Our answer to the
suit instituted by Major Armes was not to
the writ itself. but to the ruling TO show
cause. This action was reached only after
a long conference between the various at
torneys. during which every phase OF the
case was carefully gone over
We found that If the Armes case was
dismissed there were others awaiting 10
be filed, and we would have been deluged
with suits which would have followed one
another without limit. We therefore
agreed upon that course which promised
TO be most effectuaI, and to afford the |
greatest protection to all concerned, this
through the instrumentality Of a receiver |
In the present state of excitement we |
ieemed no other course feasible. Many
1f the statements In the bill filed before |
Judge Norton are untrue, and do great ! +