The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1908-04-15
MOVE TO ENJOIN
MILL MEETING.
Important Step Taken i'm
Ware Shoals Contest.
THE FIGHT CONTINUES
Judge Gage to Hear Motion of Minority
for an Order E~pjoining Special
stockholders Meeting.

An interesting and important step in
the now famous Ware Shoals mill fight
was taken last week by the attorneys
representing the minority stockholders
of the company in that they will appear
before Judge George W. Gage in Green
wood this week praying for an injunc-
ton to stay or prevent the proposed
meeting of stockholders on April 22nd
at Ware Shoals, where the majority
stockholders will increase the capital
stock of the mill to m and a half mil
lion unless prevented from so doing by
the Injunction asked for. The attorneys
in this action are those representing
the plaintiffs in the pending suit against
the Riegels and others of the majority
side for damages and Specific perform
ance," viz, Simpson, Cooper & Babb,
f. p. MCGOWAN and A. G.. Todd, of the
Laurens bar, and Simpson & Bomar, of
the ~Spartanburg bar. These attorneys
met in S~partanburg on Tuesday for
joint consultation and the above men,
toned action was decided upon. Judge
Gage is holding the court of COM
mon pleas in Greenwood this week and
it is hoped to secure his order in time
to prevent the proposed meeting. A
temporary injunction, lasting until the
pending suit is tried, will be asked for
if a permanent order cannot be secured.
Notice was served on the defendants
attorneys Tuesday.
If the injunction is secured then the
issues will be settled by the suit brought
by j. o. G. Fleming and others, for the
complaint in said suit contains a clause
asking that the Riegels be prevented
from issuing any preferred stock on the
grounds that it would be a violation of
the original contract entered into by the
Riegels and the minority stockholders.
This case will be heard next week I'M
less the attorneys for the defendants
succeed in having it POSTPONED. AS has
already been stated in this correspon-
dence the suit against the Riegels is to
require them to carry out the form of
the agreement entered upon and to pay
damages for the losses sustained during
the period of their control. This agree
ment forbids the issuance of preferred
stock.
Following is the affidavit upon which
is based the prayer for the injunction:
Personally came before me N. B.
Dial, one of the plaintiffs in this action,
who, being duly sworn, says that at the
time he was negotiating with the defen-
lantu Rapt Pinpal ,,,l par, II d.
gel, and others with respect to their be-
coming interested as stockholders in
Ware Shoals Manufacturing Company,
he stated to said defendants and the
other defendants herein with whom he
negotiated that when the corporation,
Ware Shoals Manufacturing Company,
was formed and the stock then held
therein was subscribed for by the vari.
GUS stockholders, it was distinctly
stated, understood and agreed that all
the capital stock in said corporation
should be common stock and that there
would be no preferred stock issued, and
as evidence of such understanding de.
ponent exhibited to said parties named
a certain prospectus, copy of which is
hereto attached; and deponent says that
the defendants we'll knew and under.
stood that the stock so subscribed ir
said corporation by many of the plain.
tiffs and other minority stockholders
now interested with them was sub.
scribed and taken with the understand.
ing that preferred stock should not be
icciIa1 n, cold ,nYnn,otin, Do,o,o~t
further says that to his knowledge it is
absolutely unnecessary that preferred
stock to the amount of $500, 900, or any
other amount, and that in his judgment
it will be greatly TO the prejudice and
injury of all the present stockholders
holding common stock in said corpora.
ton for their said stock to be burdened
with the preferred stock which the de-
PENDANTS now propose to issue. Depo.
nent has no hesitation in saying further
that in his judgment the issuance Of
said stock as proposed by said defen-
dants will greatly depreciate the selling
and the dividend earning value of all
common stock of the said corporation.
Deponent attaches to this affidavit a
statement of the financial condition of
Ware Shoals Manufacturing Company
as issued on January 81, 1908, which
shows that at that time the said con
pany had on hand and in bank more
thai 500, 600 in cash, and shows further
that if the cash on hand, together with
the proceeds of the sale of quick assets,
should be applied to the indebtedness OF
said corporation, the balance of indebt-
edness then remaining due would be
comparatively small for a mill of the
size, age and capacity of the defendant,
Ware Shoals Manufacturing Company.
Deponent further states that during
the unlawful control by the defendants
of said Ware Shoals Manufacturing
Company, as alleged in the complaint,
which amounts to money, have been
unnecessarily and extravagantly ex.
pended in the erection Of unnecessary
dwelling houses, unnecessary village
improvements and water works, unnec.
essary power plant or parts thereof
and for other purposes, which sums, to.
gether with the sum of about $28, 00C
of commissions on sales of goods caused