The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1905-08-11

! TROUBLES;
ARE: AIRED | ! /
IN THE BILL OF THE sT0 CK.
HOLDERS WHO BRING SIIT
AGAINST THE DIRECTORS
AND OTHERS.

HOLDERS WHO BRING SUIT
AGAINST TIE DIRECTORS
AND OTHERS.
CHARGE is MADE THAT THE
\ BUSINESS OF CONCERN
WAS GAREI,ESSLY AND
IS FRAJDULENTLiYsM MANAGED
- Il
Plaintiffs in Bill Seek 10 Repudiate
Bonds Claiming They Were Us
sued Without authority Missing
Secretary is Called an Absconder.
The bin IN the suit recently In
lstituted in eircuit court BY Benja-
man Brown Stout, George W. Pool.
Mrs. Emma Jarboe, Wade Haup-
den Jones, Clinton Henderson, Guy
Swine and Thomas i. Anderson,
stockholders, against the Eureka
Loan & Building Association, its
directors and It's bondhclders, was
filed Tuesday in the Office Of the
clerk of the court by Attorney H. T.
Houston, representing the plaintiffs.
1t is lengthy, covering twenty-five
type-written pages.
The plaintiffs allege that on May
2, 1891, the association began bust.
ness, dull. Incorporated, with an ar-
thorized capital stock of $3.50, 900,
with shares at thepar yalne Of $3.50.
The series was to run seven year,
and there have BEEN fourteen Of
them issud, the last being issued
May 2, 1904. OF this stock, the bill
recltes, there is a large amount out
standing and ,mmatured, and of it
Stout has 10 shares, Pool 4, Mrs.
Jarboe 3, Jones s, Henderson 8,
Wine 5 and Anderson i.
The plaintiffs allege that when
stock matured bonds were issued in
stead of paying the stock then dine.
These bonds were to run seven years,
and now there is an outstanding in
debtedness of $4,000. The bill de-
mics the liability OF. the association
on the bonds and asserts that the
directors issued them without au
thority, quoting two sections of the
cnstitntion Of the association in sup
port Of this contention, which pro.
yides that one-half of receipts after
stock natures shall be set aside and
after Withdrawals are paid thercfroni
the remainder shall he applied to
the payment of unredeemed stock.
1t is contended that the directors
were directed by the constitution to
Issue an order for payment Of ma
tured stock, when there was not suf-
fcient cash ON hand and 50, treat the
matter until the association got
funds.
Under section is of the consti-
futon it is denied that the bond is.
sues we're with proper authority and
that persons took them with notice
of want of authority to issue.
IT is ayerred that the obligations
outstanding amounting to $4,000
were incurred without law on the
part Of the directors and issued for
false and fraudulent purposes. OF
this $4,000 is said TO be IN bonds
unpaid. Eighty thousand dollars
have been paid IN by non-borrowing
stockholders, all of which shuld have
ben subject to withdrawal.
1t is claimed the concern it not
insolyent and on proper settlement
,apd proper accounting of its prop
ffty, the association can pay out
every dollar it owes. Attention is
called to r. R. Barnetts suit and
the reference Of the cause to a spec
jail commissioner, which actions are
evidently for the purpose Of wind
ing up the affairs of the concern,
which would work great hardship to
borrowing stockholders, whose stock
will not mature for several years.
Referring TO James R. Adams, the
former secretary, the bill saws he
Absconded IN the early summer of