The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1911-11-29
LOCAL MEN LOSE
WARE SHOALS CASE
Supreme Court Upholds Decision Re-
port of Special Referee and Decides
for the Riegals.

port OF Special Referee and Decides
for the Riegals.
Affirming the dismissal of the com
plant involving 100000 alleged to
be due minority stockholders, the SUI
ITeme court Saturday, in a decision
by Chief Justice Jones, decided the
well known case concerning the Ware
Shoals Manufacturing company. Sew
eral years ago the minority stockhold-
ers, alleging wrongful acts on the
part of majority stockholders. filed a
complaint asking for 100000 dam
ages. BY consent of all concerned all
of the issues of law and fact were
submitted for determination to ref
cree. After taking all testimony the
reteree made his report He recon-
mended the granting of the motion
for the dismissal OF this complaint
This recommendation was upheld by
the circuit court of Greenwood County.
and the case was accordingly appeal-
ed to the supreme court.
The case was that of j. O. C. Elem
ing, j. T. Johnson, n. b. Dial. W. L..
Gray, Fl. *. Aiken w H. Hudgens and
j. Fl. Wharton, citizens of Laurens
county and minority stockholders
against Benjamin Riegcl, George
Riegel Howard Riegel, b. ID. Riegel.
John S. Riegel OHM r. Dewitt. e
W. Sparks and the Ware Shoals
Manufacturing company, said to be
tle majority stockholders, defendants.
Amount Involved.
From the petition 1t appears that
on June 30 1905, the plaintiffs were
stockholders in the Ware Shoals
Eanufacturing company, a corpora
tion organized with n. b. Dial as pres
1uent and treasurer, having a capital
stock of 100000. of which about
$255,OOO had been subscribed. about
S2l5,OOO had been paid in cash and
properly. and shares of stock. to the
amount last named had been issued to
ana heId by the various shareholders.
oh the last day mentioned an agree
ment was entered into between the
defendant b. ID. Riegel. and the de-
lendant Ware Shoals Manufacturing
company by which it was stipulated
that the former would take and nav
lor the unsold portion of the capital
stock, amounting in par value to
$2S5,OOO upon the condition that such
subscription would not be binding
until and unless at the next annual
meeting of the stockholders the num-
Der OF the directors should be fixed at
hnt ~ u
permitted to name five of them. and
an agreement to this effect made in
writing between y. b. Dial and b. ID
Riegel by which the said n. B. Dial
should procure the ratification of this
agreement at the annual meeting of
the stockholders. and that ~ B. Dial
would sell at par to b. d. Riegel suf-
nclent stock in the corporation to
make up the total amount of $3.50
600 of stock thereof in case the cor
poration would be unable to sell him
stock to that amount at least.
Ofticc OF President.
The written agreement in ques-
ton contains no other provision hay-
ing any bearing upon the issues of the
cause, there being no reference there
In to filling the office of president 9th
er than such as is contained in the
provision last above stated" says the
opinion The provision that at the
annual meeting of the stockholders a
board OF nine directors should be
elected to control the affairs of the
company and elect the president and
fix his salary
This agreement was carried out at
the annual meeting of the stockhoId-
ers on July %, 1905, and thereafter
B. ID Riegel and his codefendants
became the owners OF the majority
OF the stock I'm the opinion it is
stated that six of the individual 6e
fendants in this action we're on the
board of directors, and at the annual
meeting of the stockholders in 1oof
the directors We're all reelected. Dur
ing the year 1905 and 1906 y. b.
Dial served as president of the com
pany at salary of $4,000. although
there appears in the record. accord
ing to the opinion, no resolutions or
actions or other Official actions by the
directors fixing the salary of the pres
ldent. At the meeting of the stock
holders on July u, 1907. y. b. Dial
was reelected president but at salary
of $1,000 per year.
MT Dial refused to accent the