The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-01-24
RETALIATION FOR SUITS
Prominent Officials Of the Com
pany Are in Arrears.
Plans to Fight the Suits Vigorously
Are Now Being Made-COmmOn
Stockholders Declare They Were
Only Expected to Pay IS Per Cent
on the Subscription, Which VIII
BE the Principal Defense.
SPECIAL 70 ne Washington Herald.

SPECIAL 70 he Washington Herald
Norfolk. Va. Jan 23.-Developments,
not heretofore contemplated. are lOw ex-
pected 10 come out Of the suit entered
week ago in the United States Circuit
Court by the receivers Of the jamestown
Exposition Company against LIZ sub
scribers 10 stock Of the concern. common
and preferred, who, it is alleged, have
not paid for the stock FOR which they
subscribed The defendants in the case
have certainly taken notice and VIII
fight TO the utmost OF their ability
No further Official action has been taken
in the matter since the fling Of the
suit, the return Of Judge WaddIn here
On Monday being awaited, that he may
direct whether service in the case shall
be general by publication, OF upon the
defendants individually. as in the or
binary action to recover
May Ask Investigation.
4 More talk now is heard as 10 probable
State or Federal investigation OF the ex-
position, as evidence OF dissatisfaction.
which has been kept at rest. for some
time by promises that the government
would buy g portion Of the exposition
grounds at a price sufficient . pay Of
all Indebtedness OF the exposition com
pany, without loss 70 any one. is be
ginning 10 crop out There are those
among the subscribers being sued, and
among stockholders whose subscriptions
have been paid up, who are IN a humor
10 force. II they can, a thorough in
vestigation- This investigation may be
asked through the courts. OF else the
State OF Federal government may be in
vOksd-
Officers in Arrears.
a matter causing some comment is the
appearance on the list OF those being
sued Of the names OF several prominent
officials OF the exposition. Those who
have paid up are unable 10 see why the
officers should have taken their salaries
and not met their Own obligations.
II is said that some OF the officers, who
are on the delinquent Est. assert that
the claims against them are Offset by
exposition. It is claimed that they should
have collected their salaries and paid
FOR their stock to set an example for
others Other officers who subscribed 70
stock evidently paid Up. as their names
90 not appear among those who are being
sued.
Grounds for the Defense.
An array OF legal talent has been re-
tained by various defendants 10 fight the
suit, but, Of course, none Of them viii
say on what ground OF grounds they
intend 10 contest But from stockholders
il is learned something Of the defenses
which viii be made.
Subscribers 10 common stock assert
that the stock prospectus Of the exposi-
ton made the statement that not more
than 3 per cent Of the face value Of the
stock would be called for; that It was
TO be fully paid and nonassessable after
that II IS said that large numbers OF
subscribers TO the common stock have
paid the 8 per cent and 10 more. Numer-
Gus subscribers 10 large numbers of
shares have done this. and maintain that
they owe nothing more
Some preferred stockholders are setting
I'd the claim that the common stock
holders should be made 70 pay Up before
them. and that they should be called
upon to settle Up only in case the expo
sition is then still lacking funds with
which to pay its debts.
TangIe Over Resolution.
The claim is also now made that N.
board OF governors Of the exposition By
resolution or June p, 1907. permitted cred
itors who might be subscribers TO stocl
OF the exposition to apply their claim.
toward the payment Of the stock Their,
are s number OF those now being SUED
who are affected by this resolution. but
counsel for the receivers Of the exposf
ton are said TO maintain that the expo
sition was insolvent when this vas done
and therefore the resolution Of the bOarC
OF governors IS Illegal
". H Barnard. a merchant Of Norfolk
is now contesting the claim by the ex
position receivers against him for IN
paid stock on this resolution.
The last Of the names OF those sued I!
an imposing one Originally appearing
on it was the name OF Alvah H. Martin
member Of the exposition board Of gov
errors, vice president, director general
and finally chairman OF the exposition re
ceivers, but a pen was drawn through tn,
name. L was explained that, being
receiver. he could not sue himself I
appeared that Martin subscribed to 500
worth Of the common stock. and tina
S250S.74 was still due on It.
Officers Who Are sued.
Among the more prominent sued are:
y. Beaman. treasurer Of the exposition
stock subscription $500, owes s2.5c; s
Gordon Cumming. exposition director
subscription $500, owes $3.50; c. Brooks
Johnston. chairman OF the exposition
board OF governors, subscription S5.oo0
owes $500: T J. Wool. exposition eoun-
sci and counsel for the receivers. sub
scription. 5000. owes $500; Peter Wright
director subscription $500, owes 5000
George f Adams. director. subscription
P5a9. owes 1850; ". z. CottreH. mem
per Of the board OF governors, subscrip-
ton 5000, owes g $50; c. 6. Sherwood
member OF the board Of governors, sub
scription $500, owes $500; John 7. Bolton
director, subscription $500. owes $500
William J. Payne. subscription $25.o00
owes $500. North Norfolk Land Com.
pany. subscription $4,000, owes So, 575
Norfolk and Atlantic Terminal Company
subscription S20OeG, owes S15.e10; John
Smith Corporation, subscription SIS 600
owes SLIGO.