Evening star., 1914-06-05
Suggests Vote to Decrease
Commercial Company's
Stock Be Delayed.
ELECTION OF OFFICERS
NOT TO BE HELD NOW
Stockholders Will Be Given Chance
to Confer and Reach Agree
ment to Avoid Litigation.

] ho Notc ofl the proposal TO DIMINISH
4 the capital stock Of the Commercial Fire
insurance Company will be postponed
for thirty days In the interval no cleo
ton of officers is to be attempted, and
the present officials of the corporation
are to file in the District Supreme Cour,
within few days a complete list Of all
! the stockholders Of the company.
This list is to be accessible to any one
| IN interest with the view that the stock
| holders may confer among themselves in
| an effort to reach an agreement and
avoid further litigation. If possible
| Justice Stafford. presiding in Equity
Court No. 2, made this proposition to
counsel today when he had heard the
complaints against the management of
the company and the answer of the cor
poration.
Attorneys Charles A. Douglas and
| Hugh H. Obear for the officials of the
company acquiesced in the suggestion,
which also met the appropal of the sew
eral lawyers representing complaining
stockholders.
Will Be Made Order.
The courts suggestion will be embodied
in an order to be prepared for the sigma
ture of Justice Stafford early next week.
The court strongly intimated his reluc-
tance to intervene in the affairs of the
corporation unless an adjustment could
not be effected.
Counsel intimated that the fight might
take on a three-cornered aspect. In or
dering the two cases to be consolidated
for trial, and allowing intervening petit
tions to be filed in the Clemence case.
Justice Stafford stated that the matter
ought to appear as single case, II ntl-
cation was to proceed.
Company Files Answer.
The insurance company filed its
answer denying all the material allega-
tions of the bills Of complaint filed by
John B. Clemence, a local stockholder.
and by Charles F. Roster and three
other out-of-town stockholders
The company claims there is no rea-
son why a court Of equity should in
terfere with the internal workings OF
a private corporation. the management
of which is reposed by law in its board
Of directors.
The claim is made that the charges
are preferred for Interior reasons
The bills are not filed in good faith,
the court Is told, but constitute. 1t IS
alleged, parts of "a conspiracy to IN
jure the company and procure re
duction Of the appraised value of realty
holdings of the company"
The scheme of recapitalization to which
the plaintiffs object. the answer sets
forth, was proposed by s. Herbert Wolfe
OF New York. consulting actuary who
made a recent examination OF the COM
pany's affairs The insurance company
is in good financial condition, the court
is told, and the statement made that
within ten days the local superintendent
Of insurance referred to 1t as next TO
the First National Insurance Company
the strongest insurance company in the
District Of Columbia. 5-sf~
Southern Building Equity.
The answer denies that the equity in
the Southern building cost only E7,5o0
and says the actual payment was $144.-
co., This equity, which. the plaintiffs
say, is worth only 100000 now, the an
swer declares is valued at $354,5O
Taking up the matter of the dividend
payments in 1872 when it's report for
that year showed 1t lost money, the
answer of the company says the divi-
dend was not paid out of stock sales. as
alleged, but from earnings Of the COM
pany.
1t explains that the first half Of the
dividend was declared in the fall OF
1911, payable out of the profits Of the
last six months Of that year. The re-
mainder of the dividend was paid from
the receipts Of the first six months
business of 1872, when the year
losses had not been determined, and
could not be anticipated. The claim
is made that the assets Of the corpora
ton are now 59,535.65.
Intervening Petition.
Attorney James B. Archer presented to
the court an Intervening petition Of
Robert ]. Wynne, Fred T. Dubois and
John L. Smith. former members of the
board of directors and still shareholders
in the company.
They join in the request of Attorney
James S. Easily Smith for John S. Glenn
ence, and Attorney w. Gwynn Gardiner
for out-of-town stockholders, that the
voting of proxies on the proposal to re-
duce the capital be enjoined and that a
receiver be appointed for the company.
Through Attorneys Ralston & Richard
son, eleven stockholders from Elgin. Ill,
also secured permission to intervene In the
case. They also join in the request for
an Injunction and receiver
The insurance company was represented
by Attorneys Douglas, Ruffln & Obear.
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