Evening star., 1909-07-07
Market Company Stockholders
Apply to Courts.
OPPOSED TO COLD STORAGE
Minority Holders Say Their Divi-
dends Will Be Affected.
RULE ISSUED TO SHOW CAUSE
Officers of Company Named as De-
PENDANTS in Suit by Michael Gatti
and Three Others.

Application was made today to the Dis
trict Supreme Court by Michael Gatti and
three other minority stockholders to pre-
vent the Washington Market Company
fro.n issuing 100000 worth of thirty-year
cold storage bonds, which have been ad-
vertised for sale by the company The
complainants allese that the company is
exceeding the authority granted it by its
chart-r i'm the contemplated issue of
bonds.
Should the bonds already be issued the
court is asked to require the company to
take up and cancel them as having been
Illegally issued and to refund the money
paid in on them.
In addition to the company. former Sen
ator William f. Chandler. its president
William V Cox and Edward o. Whitford,
vice presidents: Frank G. Wilkins. super
intendent and Samuel W. Curriden. treas
urer, are named as defendants.
After setting forth the history OF the
organization of the market company the
complaining stockholders, who own 81
shares of the capital stock by Attorneys
F. Edward Mitchell and Edwin Forrest,
tell the court that February i. 1907, Con
gress authorized the company ito pro-
cure. purchase or lease all OF part OF
square 3oS at 11th and Water streets
southwest, and thereon conduct a colo
storage business and manufacture ice for
use in Center market and for sale; pro-
yided that nothing in this act snail De
held to limit or affect in any way any or
the provisions Of an act to incorporate
the Washington Market Company, passed
May 20 1870" They declare that an is
sue of bonds under this latter act would
violate the provision of the organic act
of 1870.
Ask for an Accounting.
Further complaining to the court, the
minority stockholders allege that the
company has from the sale and rental of
stalls and stands in the market made
large profits and gains and has given to
the stockholders in dividends 'only a
very small portion thereof Thereby,
they aver, large surplus fund has ac-
cumulated during many years and they
ask discovery by the officers OF what
disposition has been made of the sur
plus. to what purpose it has been put
and by what authority.
They also tell the court that the COM
pany has received thousands of dollars
from the National Guard as rent of a
portion of the market buildings for use
as an armory. They ask a discovery as
to the amount of money so received
and by what authority the lease to the
guard was made
The complainants declare that as
stockholders of the company their
interests. the value of their stock and
the amount of their dividends will be
seriously affected if the company is al
lowed to issue the bonds, which action,
they claim. exceeds the authority con-
ferred by the company's charter.
Proposed Sale Of Bonds.
The company recently acquired at a
cost Of s12j,OOO the square bounded by
18th and 18th. E and Water streets south
west. and has advertised the sale of
$4,000 in bonds. the proceeds to be used
in improving the property by the erection
of an ice manufacturing plant and cold
storage building.
Justice Barnard issued rule on the de-
PENDANTS requiring them to show cause
July IA why the issuance of the bends
should not be enjoined.