Henderson gold leaf., 1911-09-14
BURLEY SOCIETY RECEIVER.
Asked For by Stockholders of Bur-
ley Tobacco Society and Com
pany Sensational Charges
Made
Tobacco Journsl.1

Suit was flied in Lexington, KY, on
last Wednesday against the Burley
Tobacco Society and the Burley To-
bacco Company, setting forth sensa-
tional charges and asking that the
two corporations be placed in the
hands of a receiver, ali that d gener-
al accounting be made Of both.
The petition is styled j. D. Grover,
james ". Thacker and John T. Ford,
who sue for themselves and in behalf
of all persons who are interested in
the proceeds OF the crops of Tobacco
of the years 1906, 1907 and 1909
pooled with the Burley Tobacco So
ciety, and all stockholders OF the
Burley Tobacco Company, against
the Burley Tobacco Society and the
Burley Tobacco Company.
The petition states that the first
named corporation organized to pro-
mote the interests OF Tobacco grow
ers, and to act as agents Of the men,
bers Of the Socintv in disposing OF
the Tobacco iuc,uI, ii tn he crops
pooled. Under this pretense it de-
clares there were induced to join the
organization Tobacco growers from
the Burley regions OF Kentucky, In
diana and Ohio, who placed in the
pool the crops of 1906, 1907 and
1909. The second named corpora
ton was instituted for the purpose
of handling, housing and selling the
crops included in the pools.
CLAIM VIOLATION OF TERMS.
1t is alleged that many thousands
of hogsheads of tobacco were deliver
ed to the warehouses, and that gross
violations of the terms under which
such were procured have resulted.
The plaintiffs assert that, pursuant
to the agreements entered into be-
tween the members of the pools OF
the first two years, the crops were
sold, but that only a partial divis-
ion of the proceeds of the sales was
made among the egrOwers, the Society
withholding at the present time a
portion of the receipts from the crops
of 1906 and 1907.
They say also that the pool OF
1909 was entered into by the grow
ers with the understanding that the
crops were to be delivered for the
sole purpose of grading and selling
the same, for the benefit of the pool
ers, each crop to bear the necessary
share in handling and selling and in
the general management OF the pool.
STAB AT POLITICS.
This trust, it is alleged, has also
been broken, the funds derived from
the sales of the last named crop be-
ing devoted to the carrying on OF
political campaigns, for the payment
of newspaper publications and for
the employment of public speakers.
1t is further charged that the funds
realized from the sale of tobacco for
the three years of the pooling have
been misappropriated and directed
into improper channels without the
consent of the members of the Socie.
ty for the purpose of organizing or
attempting to organize pool OF the
1910 crop by mismanagement oi
the affairs of the Society; by allow.
ing the proceeds of the sales to &C
uHucJOSlUcu anu ny lOdullIS ooLhe
without interest or security.
NEUTRALITY-SUSPICIOUS. Is CHARG
ED.
The Burley Tobacco Company, co
defendant with the Society, is alleged
to have retained, with the approva
Of the Society, more than 81, ,0O0,0 ,00(
from the proceeds of the sales con
dacted for stock in the company
stated to be worth not in excess o
100000.
The whole scheme Of the pool ii
charged to have been violated. The
original intention OF the growers, i
is stated, was to place their tobacco
under one management and to thu
maintain fair price for it, but sucl
has long since been abandoned.
One instance is cited when pooled
tobacco was sold in competition
with unpooled with the avowed pur
pose of forcing down prices.