New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-08-09

affairs IN Middle OUer Refusal to
GiUe Up Stock.

The rluddled affairs of the Afro-American Realty
Company seem to be nearer a solution. The
trouble which keeps the company in the courts
grew out Of it's incorporation and the consequent
refusal Of certain of the directors over their
certificates OF stock. One OF the certificates OF
stock. without which the president OF the COM
pany Philip A. PaytOn jr.. is quoted saying
he will not issue any dividends. is in the pos
session Of Everett 7. ChappelI, Negro lawyer.
who is retaining it, he says. collect his fee from
the original owner. the Rev. p r. Wilson.
Although the company originally a strictly
Copartnership affair, it had board Of directors,
president and all the other officers Of a corpora
ton. Then it made q corporation in June.
1904 Each Of the ten inCOrporators subscribed Tor
500 shares OF stock at $40 share. In June OF the
following year five OF the directors failed OF re-
election The number of directors had been in
creased 10 eleven in the meantime Walter T.
Handy. OF those left Off the new board. then
got options on the stock OF two other directors
and began 20 advertise il for sale below par
The treasurer. Frederick v. Moore. got a
public accountant 10 go the books before he
would take charge. The accountant found il IS
alleged that, instead OF $4,000 having been sub
scribed by the incorporates the actual amount
paid in only $40 Then the directors pro-
posed that the shortage be set against the good
will OF the cOpartnership but found that that
would not be legal
AS way out OF the middle the directors met on
October Of that year and eight OF them signed
into the company 70 make up the deficit and
take certificates for sxty-fOur shares in place OF
the certificates of five hundred shares which they
held.
Handy and James E. Garner. the ex-treasurer.
did not sign this agreement. Handy in September
split his certificate into four One-hundred share
lots and ninety-fOurs lot selling each lot
to a different person. retaining six shares. The
corporation refused transfer the certificates and
days later II is alleged declared that all
the original stock in the corporation was can
celled
Everett T. ChappeI was then retained behalf
Of Handys assignees TO compel the transfer OF the
certificates. and Alonzo Jackson. one OF the as
sgnees. got a Judgment from Justice MacLean.
Meanwhile only six OF the directors who had
signed the agreement 70 turn in their original Cer-
tiflcates had done The ex-presldent. James h.
Thomas. and one OF the old directors named Gar
ner then agreed IL Is alleged to invest $4,000 more
in the corporation 70 get control OF IT, Thomas, IL
is said. was put up $4,000 IL Garner would put
UP 5000 a I'd his 500-Share certificate. The scheme
fell through, Garner refusing agree 90 Il.
Then Thomas gave his shares 10 PaytOn,- in
change for equity valued at 5000 in the house at
No. West l34th street. a note for 5000 and $500
in cash.
About this time the annual meeting was held
coming On the day Of the meeting Wilson sold
his certificate 10 Miss Sadie F. llonlax. Then Il
was suggested that WhsOn ana Handy go to the
persons To whom they had sold out, offer them
their money get their certificates and turn them
into the company. The shares had gone up In
value. and those to whom Handy had sold refused
TO sell back. but Wilson got his share back from
Miss LOmax through Chappeh ChaDpell alleges
that he 20 have had Zee Of $500. az which, ne
the company Wilson will get the certificate
until he gets the remainder of his money. Argu-
should not give up the certificate Is now bein
heard before Justice GiegeTiCh.