Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-05-06
WANTS RECEIVER NAMED
FOR BROAD ROCK COMPANY
b. j. Taylor Files Bill in Equity
Court Against Mineral Water
Concern.
SAYS COMPANY Is INsoLvENI
Charges 1t With Paying Excessive
Salaries to Officers and With Sell
ing Out Its Business Equipment In
Number Of Cities.


ing Out Its Business Equipment In
Il Number of Cities.
Following notification Of suit, entered
in the Law and Equity Court during
tho April term. b. J. Taylor yesterday
filed n bill of complaint against the
Broad Rock Mineral Springs Company,
Incorporated. and the Bank Of Com
inerce and Trusts, trustee. alleging that
the company owes him $4,000 on first
mortgage bonds, with interest begin
ming Juno /, 1911. Mr.. Taylor recites
that he sues for himself and all other
holders of first mortgage bonds. though
the bill of complaint bears no other
name.
! In the course OF the bill. Mr. Taylor
! alleges that the company Is insolvent,
that it has dissipated much Of Its money
by paying excessive salaries to officers.
! and that 1t has sold not only part Of
the property owned In the local plant
! In Chesterfield County, but that 1t has
also disposed of Its business, horses
| and wagons and other equipment in
| Washington and Few York City, and
he. therefore. requests the court to APP
point receiver until such time as
/ the companys alleged indebtedness to
him and others may be properly ad-
| Indicated. Mr.. Taylor is represented by
Attorney William p. DeSaussure, who
! filed the suit yesterday afternoon at
$40 o'clock.
COMPLAINS THAT INTEREST
HAS NOT BEEN PAID
In his bill OF complaint. Mr.. Taylor
recites that he is the holder Of nine
coupon bonds OF the Broad Rock Springs
/ Company, Incorporated, each of the par
value OF $1,000. asEregating the sum
of $4,000. The bonds. 1t Is stated, are
! dated June !, 1911. and are payable on
Juno /, 1921. with interest at the rate
OF per cent per annum, payable semi
/ annually.
The complainant states further that
he holds detached from the bonds the
nine interest bearing coupons for s25
each, due and payable in December,
f, 1914. The coupons were presented for
payment. the complainant alleges after
maturity, and payment was, and has
been. refused for more than three
months.
I The bill states that the bonds are
issued under and secured by deed OF
trust dated June, 1911. executed by the
Broad Rock Mineral Springs Company
! incorporated. 20 the Bank of Commerce
and Trusts, trustee. II was stipulated
in the deed. 1t Is said. that the bonds
shall not be Issued or become obliga-
tory for any purpose until authenticated
! by the certificate OF the trustee Endorsed
on the bonds.
| COMfANf'S PROPERTY
I CONVEYED TO BANK
The bill OF complaint also tends to
show that by the deed OF trust the
mineral springs company conveyed to
the Bank OF Commerce and Trusts
trustee. for the purpose OF securing pay
ment of principal and interest OF the
bonds held by the complainant as well
as other bonds held by Others all the
secured bonds, aggregating 100000,
and all the company's real and personal
estate The latter includes all the
| property on which Holly Springs is
located in Chesterfield County. about a
mile from South Richmond. and all the
buildings. structures. goods. machinery.
rights, franchises and privileges ac-
cruing to the company. The property
on which Holly Springs is located com
prises five acres. and other real estate
property listed is tract OF 1877 acres
adjoining Holly Springs.
The deed OF trust provides further,
the bill recites. that In case OF default
II the default continue for three months
the principal of each bond shall be-
como due and payable, and in every
such case the trustee, the Bank OF Com
mcrce and Trusts. may ut it's option
sell all property and other real hold
ings at public auction to satisfy the
Indebtedness. After he had presented
his coupons for payment on April lG.
Mr.. Taylor alleges, he demanded that
''e trustee eSccutc us trust d. SELLING
the trust property, and was refused
STATES HIS BELIEF THAT
COMPANY Is INSOLvEST
In addition to the debt due him,
Mr. Taylor charges that the company
IS similarly In default rs to the greater
portion of the remainder of it's bonds.
and that there is now past due intercs t
accumulated and unpaid on 100000
worth Of bonds. the interest amounting
10 between $4,000 and $4,000. lie states
his belief that the company Is insolvent
and that it's annual income Is not suf-
fcient to pay the current expenses. and
alleges that the company has sold n
number Of its wagons and horses and
other property and applied the pro-
ceeds to uses other than payment or
security of Its debts; that n large per
centage of the company's income has
been dissipated in payment Of excess
aivo salaries to some of It's officers, and
that the business In Norfolk. Newport
/ News Washington, Baltimore and New
York City has been sold and tho pro-
ceeds used by the company for its own
purposes and not applied to the security
of It's bonds.
For these stated reasons and in fear
that interest on bonds possessed by him
may accumulate. Mr.. Taylor asks the
court to appoint q receiver. The papers
will be examined by Judge Crump to-
day.
Captain John Landstreet. president
OF the company, was out OF town yes
terday, and Samuel G.. Mason, secretary
said that he had nothing to say in re-
! gard to the suit.
Mr.. Taylor is general manager OF
, the Fonticello Mineral Springs Unc.)
|