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


for $4,000 that he failed to have the
title examined before binding the Com
pany to take the property; that after
this contract was made. 1T was discov-
cred that the property was under lease
and IL was necessary to pay an addition
al $1,000 to get possession of the prop
erty from the tenant that all this was
done fraudulentIy and corruptly.
It is charged. that the Company pur-
chased the Orchard Park property for
$4,000. and that part of this property
was necessary for the Companys use
and that the officers OF the Company
have negligently failed to handle the
property since its purchase so as TO de-
rive any benefit therefrom.
1t is further charged that the ware
house built by the Company in Lexing-
ton cost $4,000 and the equipment s1O.-
900; that these prices were grossly ex-
cessive and constituted a wastefuI ex-
penditure of the Company's money.
Concerning the purchase of the High
Oaks property. we find upon investi-
CATION that this property was bought
after full and careful consideration by
the Executive Committee. The pur
chase price agreed upon with the own
ers of the property was $4,000. The
title to the property was examined and
by reason of the fact that one of the
interests was owned by a minor it
was necessary to institute suit to sell
said property, and it was bought under
decree of court. At the time a con
tract was made with the owners of the
property for its purchase the Execu-
tive Committee had full knowledge of
the fact that the property was then
under lease to DR.. George P Sprague
for period of five years. An addi-
tional amount was paid to the tenant
| to secure a cancellation of his lease.
At the time the negotiations for the
purchase of this property were under
way it was all important that the Bur
ley Tobacco Company have a suitable
site for its proposed warehouse, and as
it was then late in the year and much
work would have to be done toward
the construction of the warehouse, and
| it was doubtful whether the purchase
of the High Oaks property could be
consummated, the Executive Commit
tee decided to purchase the Orchard
Park property from ]. D. Creighton for
$50, 900. At that time the Executive
Committee contemplated the establish
ment of a factory in Lexington and
the Orchard Park property would have
been an excellent site for such a fac
tory and for additional warehouses.
We find no fact to sustain the charge
that any of the officers of the Company
were guilty of negligence or bad judg
ment in the purchase of these proper
ties. We regard them as wise invest
ments and believe that the property
was fully worth the amount paid, and
inquiry concerning the present valu,
of these properties convinces us tina
the Company will not only not lose an!
money on account of either purchase
but will make a substantial profit b,
reason of the fact that the value of tn,
real estate in this part OF the City o
Lexington has greatly increased sine,
the purchase of these properties.
Concerning the charge that the off
GERS of the Company we're guilty o
extravaganza in paying $4,000 for the
warehouse, we find upon investigation
that bids were obtained from capable
contractors for the construction of the
warehouse, and the Committee let the
work upon the best obtainable terms
The records of the Company show tina
the investment made in the purchase
of this property and the construction
of the warehouse has proven quite
profitable to the Company.