The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1903-04-01
ALLIANCE EXCHANGE
IS IN TROUBLE now.
Testimony 10 be Taken by the
Master in Equity.
EYnENsEs Will REeIn IN PILE Mp
EXPENSES WILL BEGIN TO PILE up.
Judge Gary Has Issued an Order
Referring the Matter TO Master
Werner for Investigation.

Werner for Investigation.
Jadge Gary has fled an order of re-
ference in the case of the Farmers Al
lance exchange. The testimony will
be taken by the master OF Riehland
county, and the case will then come
before Judge Gary in its entirety.
The case is nominally entitled
Brookshire against the Farmers AL
lance exchange, and is a petition for
the appointment Of receiver for that
concern. There seems to be an un-
dercurrent of deep feeling among those
who were once leaders in this concern,
and the directors claim that Brook
shire is nothing more than fgurehead
and that the real reason OF motion
for a receiver is to have him pay Ger
tain old claims which the directors
say are such that they have not been
presented heretofore.
At the hearing before Judge Gary
last Saturday Brookshires' attorneys
urged that there were claims outstand-
ing and the fund in bank should not
be diss1pated without giving the
claimants showing. The petitioner
was represented by Bellinger, Town
send & Haskell and James Werner.
In reply the directors made pointed
reply, which was 8 roast'' of the ad-
ministration Of NJ. L. Donaldson as
agent of the exchange. The reply
gives a resume of the history of the
exchange. The attorneys for the
directors are Wm. 81. Lyles Of Co.
lumbia and n. II. Hunt of Newberry.
Those constituting the exchange
directorate and who resisted the ap-
pIication are A. G. Lyles, j. L. Keitt,
j. B. Douthit, J. P. Ashe. S. 7. Nc
Keown, O. P. Goodwin. The credit
ors are NJ. L. Donaldson, G. j. Colt
and others.
/ Col. L. NJ. Keitt of Newberry, secre-
tary of the State Farmers Alliance
exchange, while in Columbia at the
hearing, expressed himself very plain
" about this action. ''The present
board Of directors, - he said, chad been
in Office but three years-since July,
1s99-and the entire capital stock OF
the corporation is just as they found
it, is now intact and perfectly safe. It
is drawing interest and can be realized
at any time within As hours. Is has
been the earnest desire of the present
board to chow the farmers of the State
that this matter could be honestly and
economically administered and wound
cat the special meeting held here
on the 29th of October last resolution
was passed authorizing the board Of
trustees to wind up the affairs of the
corporation. It requires some little
time for conference, to get advice and
to determine what to do. In February
notice was sent out through the re-
gular channels informing the sub-al,
liances that their pro rata share would
be paid out just as soon as certificates
could be gotten in and meeting hello
for the purpose of distributing the
funds on hand.
sThe directors intended to carry this
matter through faithfully and at the
least possible cost. This work was &c
be done by the secretary and treasurer,
who get annual salaries Of but slN
and $50 respectively. If these officers
had been allowed to proceed in the
way which had been planned the sub.
alliances would have had the money al
very early date and without cost.
'Mr. Brookshire alleges that he is
authorized by the members OF toe Cash
Hill sub alliance to bring this action.
But the directors can hardly believe
thar The Cash Hill sub-alliance has
ever authorized any such action. Mr..
Brookshire does not state, nor does
he even allege, that there has been
any organized action Of the sub-ai,
lance for the purpose indicated. Fur.
thermore, the attorneys who brought
the action in the name of Brooksbire
admitted that they represented Col.
Donaldson and Maj. Colt. The officers
of the alliance think it would be un-
fair to the other alliances if the Cash
Hill alliance would allow itself to be
made use of in this way.
''When the alliance exchange was
| chartered it was proposed to make The
capital stock $50, 900, but s23, GOO is
all that was ever paid in and Col.
| Donaldson, as agent, lost S., 0So OF
that amount and Col. D. P. Duncan
lost 81, $50 subsequently,.
The directors feared that getting the
| matter into liquidation would entail
cost which would reduce the funo
materially.
In his order yesterday Judge Gary
said: In order that the court may be
fully advised as to the conduct of the
affairs of said corporation by its
directors, before deciding as to the
necessity Of the appointment OF re-
ceiver to take charge of the property
of said corporation, it is ordered that
the above entitled cause be, and is
hereby referred to the master for Rich
land county," etc.-The State, March
| "a.