The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1903-12-25

only in the usual efforts of placing or
selling the stock, and there was no
consideration moving from such pro-
moters to the company, and that the
fictitious asset $500, ,O00in amount, gave
apparent deceptive value to preferred
stock and helped to deceive complain
ants into the purchase OF. the: same.
% COmplainants further allege
upon information and belief, that the
statements issued by the company
under the direction Of the directors
are incorrect and convey an erroneous
representation in that the lists Of
assets SO prepared makes it appear
that the company owned and held
large blocks Of stock Of the value set
out in the statements; that upon an
examination of the itemiZed list and
assets it appears that these stocks were
utterly and absolutely void and worth
less, being the unissued stock of the
company itself on which no subScrip-
tion or other payment had been made,
and which had no value beyond that
Of the paper and ink upon which they
were printed; that said stock carried
as such assets being -- shares of un-
issued stock of the Olympia mills
and valued at S.. in the statement
prepared under the authority OF the
directors and issued to the public and
on both Of which the preferred stock
Of complainants were purchased.
SERIOUS CHARGES.
(c) Complainants further allege,
upon information and belief, that the
said board Of directors have in all
respects valued their duty as officers
and put their interests as individuals
far above and beyond their obligations
as directors. That contrary to law
and good conscience, they have made
contracts with themselves individual
ly, III each Of which case the company
was damaged and the said directors
greatly benefited; that although the
said w. B. Smith Whaley was select
ed as such president because Of his
supposed ability skill and experience
as cotton manufacturer, mill engineer
and expert and paid 4 salary therefor,
and as such bound to give his time,
attention and labor to the company in
consideration Of the salary paid, and
that contrary to law and objections oi
officers, he charged the company the
sum Of $50, 900 for plans and spccifica.
tions of said MILL which sum is not
only illegally paid, but far in excess
to the value Of his services.
(O Complainants further charge
that they only learned Of the facts
hereinbefOre set out in the three pre-
ceding paragraphs within the last II
days, and that Immediately thereupoI
they gave notice to the officers Of thu
defendant company that they objected
to the issuance of tho proposed bonds
That since the information has beer
obtained by complainants there ha
been no meeting of the stockholder
and board Of directors, and that it has
therefore, been impossible for com
plainants to attempt to obtain redrcs
at their hands; that it would hav
been useless to apply to the said boar'
of directors for the rights to whicl
c0mplainants were entitled, inasmucl
as the wrongs hereinbefore recite
were committed by them, and tn
wrongful issue of stock, the grant O
bonuses, the. mixing Of accounts tn
deposit Of the Olympia acompany's pre-
perty rs security for the debt Of tn
CRANKY and Richland mills, and all Q
the other acts of waste and misman
agement were comrnitted by the direc
: tors themselves, and ills not reason
able to suppose that they would und