The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1913-07-09
TOBACCO
SOCIETY IS SUED
For Recovery Of Approx
mately S55O,OOO.
SURPLUS FROM the OLD POOL
OF 1907 the Matter Under
COntenti0n-Want An
Accounting.
SUIT EMBoDIEs As COUNTIES


SUIT EMBoDIEs As COUNTIES
Lexington, Ky, July 3.-w. /.
Metcalfe, of Kenton county, and c.
l.. Griffith, of Boone county, who
say they are growers of tobacco
and were members of the Burley
Tobacco Socicty's pool of 1906 and
1907, acting for themselves and
other tobacco growers in Kentucky,
Ohio and Indiana to the number of
approximately 10000, to-day, thru
attorneys Tomlin & Vest, of Wal
ton, filed in the Fayette Circuit
Court an action against the Burley
Tobacco Society for the recovery
of approximately $550,000, which
is alleged to have remained in the
possession of the officials of the So
ciety undstributed to the growers
whose tobacco was sold in the
1906 and 1907 pools. The plain
tiffs further pray for an accounting
of the pools of 1906 and 1907.
According to the allegations of
the plaintiffs there was pooled in
1906 approximately 100000
pounds, and approximately 10000
600 pounds in the 1907. pool. The
1906 pool was sold for approxi-
mately $s.50O,OOO. while the 1907
crop was sold for about s1z,OGO,-
900. The 1906 crop was sold at an
average price of 5 cents per pound,
while the 1907 crop was sold at an
approximate average of II cents
per pound.
1t is claimed by the plaintiffs that
of the 1906 crop the Society with
held for distribution approximate
ly $25O,000 and about $500, 900
from the sales of the 1907 crop.
The claim for both years is made
up of l per cent. of the sale values
of the crops and the sum of SO for
each hogshead of the tobacco sold.
The SO on each hogshead represents
the outage fee which the Society is
said to have collected from the
American Tobacco Company and
Independent factories as commits
sion for selling the tobacco.
The contention of the plaintiffs
is that at the time the tobacco was
sold the poolers were the sole. own
ers of the SO buyers fee or outage
fee and that the proceeds of the to-
tai number of hogsheads for 1906
and 1907, approximately $4,000
hogsheads. and all other moneys
by the Society, should
have been distributed among the
poolers and not have been retained
by the Society, as is alleged in the
petition was done.
The plaintiffs and those for whom
they sue represent poole"s for about
As counties, which practically rep
resent all territory of Kentucky.
Ohio and Indiana which was in the
pools for the two years. Practical
ly 80 per cent. of the poolers re-
side in Kentucky, leaving but few
from Ohio and Indiana.
Two petitions were filed in the
case. Similar suits We're filed in
Clark county several years ago. but
the actions We're dismissed on
plaintiffs motion because of a de-
cision of the Court of Appeals in
which it was held that the actions
were brought prematurely for the
reason that there was at that time
suits pending in the Federal Court
at Covington which We're undecid-
I'd.
Circuit Clerk James C. Rogers
issued the processes for the suit.
The Burnley Tobacco Society has 20
lays in which to make answer.
Attorneys Tomlin & Vest repre-
'ented the plaintiffs in the suit
which was brought in the Kenton
Circuit Court In which Judge #. NJ.
Tracy held that the provision of
he articles of incorporation of the
Burnley Tobacco Company providing
hat the Directors should be elect
ID by the District Board on the So
'iety, was unconstitutional. and di-
ected that an election be held by |
he stockholders on October Z OF,
his year.
Can't Keep IL Secret.