The Climax-Madisonian. (Richmond, Madison County, Ky.) 1914-1917, 1915-10-20

Lexington, KY, October 8, 1915
To the Stockholders of the Burley To
bacco Company in Annual Meeting
Assembled at Lexington, Ken
lucky, October 5, 1915:
On or about the 4th day of May
1915, suit was instituted in the Fay
cite Circuit Court by J. L. VaIlanding
ham and others against the Burley To
bacco Company. The plaintiffs in this
suit have made in their pleadings
charges of mismanagement, fraud, cor
ruption and neglect against the officers
of this Company, and some of these
charges have been made specific.
On August 80, 1915, the Executive
Committee of the Burley Tobacco Com
pany passed the following resolution:
WHEREAS, a suit has been filed in
the Fayette Circuit Court by ]. L. Val
landingham and others against the Bur
ley Tobacco Company charging fraud ant
mismanag cement against the officers OF
this Company, and asking the Court &c
dissolve the Company, and
WHEREAS, it is important to the
stockholders that these charges be fully
Investigated with the strictest impair
TALLY in order that their truth or fall
sity may be clearly established, an6
without the enormous expense incident
to court proceedings;
NOW THEREFORE, BE 1T RE
| SOLVED by the Executive Committee OF
the Burley Tobacco Company that eacf
of the stockholders be notified that the
persons making these charges will be
requested to bring them before the an
nual stockholders meeting to be helC
in Lexington. Kentucky, on October 5th
1915, for their consideration and action
and
WHEREAS. many OF the stockholders
will be unable to attend said annua
meeting. and it is important that they
| be represented by a Proxy Committee
who have no connection with the man.
| agement of this Company and who car
| act independently and without favor t.
any individual,
NOW THEREFORE,, BE 1T RE
| SOLVED, that we request E. K Rena,
1
of Mercer County, and Chas. L. Land, o
| Fayette County, to act as Proxy Com
mittee for those stockholders who car
not attend in person, and we urge al
! such stockholders to send their proxies
to said Committee with the assurance o
| our belief that they can be trusted b.
| the stockholders to act solely for thei
interest, and that said Proxy Committe,
will be expected to act without the slight
est Partially toward any officer of this
Company, and
BE 1T FURTHER RESOLVED, that
| full and complete financial report of tn,
| Company's business be made at saiC
| stockholders meeting that every facilit,
| be furnished to said Proxy Committee
or any other committee which the stock
holders may appoint to make a thorough
and exhaustive investigation of tn
books and affairs of this Company. in or
| der that the stockholders may know tn
exact truth concerning these charges
| and the condition of their Company
The undersigned, E. K. Renaker
Glave Goddard and Charles L. Land
requested by said resolution to act al
Proxy Committee for stockholders
consented to so act, and caused a let
ter to be issued from the office of tn,
Company to each of the stockholder
apprising them in a general way of tn,
charges made against the officers o
their Company, and that an .oppor
tunity would be afforded at the annua
stockholders meeting to present thes
or any other charges
This Committee, after meeting ant
considering the situation, decided t,
make an investigation of the charge
made in the above suit prior to tn
stockholders meeting and to lay be
fore the stockholders the results o
their investigation.
The officials of the Burley Tobacco,
Company have given this Committee
and c. W. Banta, of Louisville, KY, tn
expert accountant, employed by them
unrestricted access to all of the book
and records of the Company. TIL
Committee had before them a sum
mary of the charges made in the Val
landingham suit, and have undertaken
to investigate these charges. The re
suit of their investigation is set out Il
the following report, the particula
charge being first stated and then tn
findings of the Committee given there
on:
The plaintiffs charge that the Burle
Tobacco Company in handling, ware
housing and redrying tobacco belonging
to the 1909 pool, charged the growers ex
cessive fees and that the profit of 1920,
900 was by reason of, the excessive an
unfair charges.
Upon this we find that prior to tn
organization of this Company and prio
to the organization of the Burnley Tt
bacco Society tobacco growers wer
| ,,rda-