The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1905-08-08
EUREKA
RCUBLES
ARE AIRED
j II THE BILL OF THE STOCK
HOLDERS WHO BRING SUIT
AGAINST THE DIRECTORS
ND OTHERS.
IbFARGE is MADE THAT THE
BUSINESS OF CONCERN
WAS C.ARELESSLY AND
FRAUDULENTLY MANAGED

Plaintiffs in Bill Seek to Repudiatc
Bonds, Claiming They Were Is
sued Without Authority Missing
Secretary is Called an Absconder.
The bill in the suit recently in
stituted in circuit court by Benja-
man Brown Stout, George w. Pool
AIRS. Emma Jarboe, Wade Hamp
den Jones, Clinton Henderson, Guy
Wine and Thomas l.. Anderson
stockholders, against the Eurek
I.o9n & Building Association, its
directors and its bondholders, was
filed Tuesday in the office of the
Jerk of the court by Attorney II. T
Houston, representing the plaintifR
~ lengthy, covering twenty-five
pe-written pages.
Tie plaintiffs allege that on May
1891, the association began bust
duly incorporated, with an au-
Horned capital stock of $65Q,000
Nitd shares at the par value of $3.50
Tie series was to run seven year
ard there have been fourteen of
issud, the last being issued
1904 OF this stock, the bill
recites, there is a large amount out
landing and unnatured, and of it
Stout has 10 shares, Pool A, Mrs
tboe 8, Jones 8, Henderson 3
Wine and Anderson 4.
The plaintiffs allege that whep
stock matured bonds were issued in
stead of paying the stock then due
These bonds were to run seven years
and now there is an outstanding in.
debtedness of $4,000. The bill de.
MES the liability of the association
on the bonds and asserts that tho
directors issued them without an
thority, quoting two sections of tho
constitution of the association in sup
port of this contention, which pro
Vides that one-half of receipts after
stock ;matures shall be set aside and
after Withdrawals are paid therefror
the remainder shall be applied t.
the payment of unredecmed stock
+ Ut is contended that the director
were directed by the constitution t.
issue an order for payment of ma
ttlred stock, when there was not sui.
ficient cash on hand and so treat thu
matter until the association go
funds.
Under section Is of the consti
tuition it is denied that the bond is
mes were with proper authority and
That persons took them with notice
81 want of authority to issue.
is ayerred that the obligations
outstanding amounting to $4,000
were incurred without law on the
art of the directors and issued fo'
e and fraudulent purposes. OF
ti $500 is said to be in bonds
iEnpaid. Eighty thousand dollar
Iiaye been paid in by npn-horrpEsing
oekholders, all of which shuld have
ben subject to withdrawal.
lit. is claimed the concern it not
insolYent and on proper settlement
and proper accounting of its prop
erty, the association can pay on
every dollar it owes. Attention is
called to r. r. Barnett's suit anc
The reference of the cause to a spec
commissioner, which actions arc
idently for the purpose of wind
M mp the affairs of the concern
which would work great hardship to
Borrowing stockholders, whose stocE
VII not mature for several years.
Referring to James II. Adams, tn,
Former secretary, the bill says he
absconded in the early summer OF
i9O4, and his present wherein
lie not certainly known. Also il
states that nothing con be gathered
From the books and that the business
the association was carelessly and
IClulently mismanaged.
BE bill sets forth that the prop.
Of the association consists of all
81 It's real and personal property
loans and mortgages and cash in the
Ieasnrer's hands. 1t sets fortF
/. Alexander, as treasurer
received all monies paid in, that the
business was grossly mismanaged
fhe books improperly kept, there
were no annual settlements by the
secretary or treasurer, and little OF
fbe books to show the amount of casl
raeeived by lis officers.
III alleges that Alexander was {
member Of real estate firm anC