The Birmingham age-herald., 1914-02-04
BILL IS FILED TO
DISSOLVE ANN|STON
CITY LAND COMPANY
Bill Filed in Chancery Court
Tuesday Gives Promise
of Great Legal
Battle
by HARRY NJ. AYERS.

Admission, February 3.-(SpeciaL)-The
dissolution of the Admission City Land
company, one of the oldest institutions
in Admission, controlling assets valued at
ever $1,0OOO0O the appointment of a re-
cever the sale OF the company's prop
erty and the distribution of the proceeds
of the sale among all of the stockholders,
is the object Of a bill filed in chancery
here Tuesday, giving promise of one of
the greatest legal battles in the history
OF the city.
1t IL, said that there are over 200 stock
holders in the company in 20 states of the
union and in foreign countries, and it is
the minodty holders that are making the
fight for the dissolution of the company.
1t is alleged in the bill that the company
was originally organized with a capital
stock of $2,000,0OO, divided into $4,000
shares of par value of S10O. and that this
capital has been greatly reduced, the
company buying its own shares of stock
for retirement out of its own assets.
Aim at New York Holders
II is claimed that the policy of the com
rany IS controlled absolutely by a few
stockholders living in New York. 1t is
the company TO pay no dividends and to
set a low value at which the company
viii luy its own stock; to depress the
value of the sock and to gradually buy
out all the small stockholders. This, it is
claimed would not only make the stock
more valuable, but would place the re-
lhainder of the stock in the hands of
the large stockholders.
The company was organized in 1887, and
civ hnt mo or inc tn thA IA nF
complaint only two small dividends of
per cent have been paid against which 1t
is said that the company has paid out in
taxes salaries and other expenses as
much as $4,000 derived, it is alleged,
from the sale of lands, thus constituting
a dimnution in the capital stock. In this
manner it is claimed, 100000 was lost to
the stockholders, with the exception of
about S1Oe000 in dividends. AS a conse-
quence of this, the bill AYERS, it is only
a question of time until the minority
stockholders, many of whom are in need
Of money, will be frozen out and lose
completely the amount of their invest
ments.
Cotton King Protestant
The bill was filed by Rutherford Laps
ley, as attorney for Joseph Eros of An
niston and Mary Lou Phinizy of Augusta,
Ga. Other stockholders Joined the fight
as soon as 1t was launcned, however, ana
a second bill has been filed with Chan
cellor w W. Whitesde. Among these
is Frank b. Hayne, one of the
largest cotton dealers in the south, be-
ing partner Of king Brown, who cor
nered the New Orleans market several
years ago.
Other litigants are Alex Rice and Joseph
Norwood of Montgomery. l.. Coker,
Hartselle, 5. c.; a. F. Warnke, Chicago;
J. p. Kyle, Columbus, Ga; W. II. Bur-
den, New York; Il. Phillips, Columbus,
Ga; l. p Smith, New York; Mrs b. w.
Hughes, New York; Wooden Il Dent,
partnership composed of IL. w. Wooden
and George H. Dent of Eufaula.
Manager Out of City
William A. Davis, resident manager for
the company, was out of the city Tuesday
afternoon and could not be seen in regard
to the attitude of the company regarding
the suit 1t was stated at his office,
however, that the company was fully
aware of the action to be taken.
Locally it is one of the most interesting
fights undertaken in many years. There
has been much complaint with reference
to the policy of the company in years
past, and the Admission Chamber of Com
merce has tried to secured a different con-
troll, as it vitality affects the interests of
Admission.