Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-04-23
HERNDoN VS.. WARDLAW

In it's summary Of supreme court
decisions, the Columbia State Of yes
terday, gives the following statement
of facts involved in the recently de-
cided case Of R. j. Herndon VS.. ]. G.
| Wardlaw:
R.. ]. Herndon, claimant, respond
| ent, vs.. ]. G. Wardlaw as receiver of
| York cotton mills, acknowledgement
liant, in re Stevens, Sanford n Jor-
dan, plaintiffs, VS.. York cotton mills,
defendant.
Herndon advanced to York cotton
mills $4,000 and received from 1t 90
shares Of it's preferred stock Of the
par value of $4,000, the transaction
| being evidenced by two writings as
| follows: To r. ]. H., 1--WE agree to
take 5000 from you, say, on April
rs, May rs and June "a, 1910, to issue
you preferred stock bearing interest
at Z pei cent, payable semi-annually.
It being understood that after the ex-
| piration Of one year, IL so desired by
you, and after due notice, that we will
reimburse you for the amount or
continue the transaction upon the
same terms as at present, viz: to pay
you an additional 1 per cent. per an
mum on $4,000, which shall begin
upon the issue Of the stock. 1 consent
to the above. r. J.. Herndon.
]. G. Wardlaw, Pit"
Memorandum of agreement made
this 1st day of June, 1910, between X.
]. Herndon and ]. G. Wardlaw, pres
ident Of York cotton mills, all OF
county and state aforesaid witnesseth:
"R. J.. Herndon has bought go
shares of the preferred stock Of York
cotton mills, paying therefore $4,000
in cash, and has been issued three
certificates Of stock each for $4,000
and dated July l, 1910.
The York cotton mills agrees to
pay the said r. ]. Herndon 8 per cent.
on the said $4,000 from July l, 1910,
payable semi-annually, that Is, l per
cent. in addition to the Z. per cent.
dividend named in certificate.
ION July /, 1911, after 80 days no
tice, this contract may be terminated
by either party, the $4,000 being paid
to the said r. j. Herndon upon sur
render of the certificates of stock, or.
by mutual consent, 1t may be contin-
ued upon the same terms as herein
before mentioned.
I'm witness whereof we have set
our hands and seals this 1st day of
June 1910.
r. J.. Herndon, IL. s.; J.. G. Ward
law, President IL. 81, York Cot
o Mills"
Thirty days prior to July l, 1911.
H. gave notice to York cotton mills
that he demanded his money and
would surrender his certificates of
stock on July /, 1911. Held that H.
was a creditor and that the stock was
only taken and held by him as col
lateral security.
Before Judge ]. w. DeVore, York.
Affirmed.
A creditors bill "a filed against
York cotton mills and a receiver ap-
pointed. On notice to creditors to
come in and prove their claims,
H. presented a claim for $4,000 with
interest and relied upon the writing
hereinabove set out. The receiver
contended that H. was not a creditor,
but had paid $4,000 for go shares of
preferred stock and was therefore a
stakeholder. This contention being
overruled by the circuit court, the
receiver appealed.
The opinion of the supreme court
by D. E. Hydrick, A. j., affirmed the
decision of the circuit court.
Associate Justices Watts, Fraser
and Gage concurred. E. B. Gary,
chief justice, disqualified.
C. F.. Spencer, J.. s. Brice for r. ].
Herndon; w. w. Lewis for receiver.