The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-03-29

the company was prepared and Sub
mitted to the directors. The directors
at once saw that II was necessary to
take. drastic action to stop as Tar "a
practicable any further loss, and to
secure an extension on the company
liabilities. This was accomplished,
and the expenses were Immediately
time not even the small balance OF
rent remaining after the voluntary
abatement OF $1,000 q month had
been paid. It was though necessary
TO meet this situation of accruing
rent aving priority In fairness to the
general creditors who had granted
the extension. Having subscribed
literally to the stock myself, anti
cipated all the payments Of my stock
and that Of some other parties. giving
my check for the same in exchange
for the companys' check in payment
of the abated rent to January Is,
1915; that Is. the rent less the $1,000
per month, which had been abated.
From January Is. 1915, to this date
not one cent of rent has been paid
me, although in the meantime lave
paid out thousands of dollars In taxes,
insurance and interest on the large
mortgage on the building, the same
being to this date a total loss.
Paid on Note Himself.
After the extension of the pay
nents to the creditors was secured,
the bank, which made the loan of
nine thousand $4,000 dollars on my
endorsement, declined to continue as
creditor Of the company. In con-
sequence. was required to change
the loan to my personal obligation or
pay the bank the nine thousand t$9,-
h0nN Aa1ta . Ia 80 "A
ship on me at that time, when money
vas at a premium, but / paid the
bank. 1t was a preferred debt, but
waived ell preference when i took up
the loan.
The annual meeting of the stock
holders was promptly called soon after
the statement made to the board OF
directors, although no quorum was
present at the first or subsequent adj
1ourned meetings Only few loyal
stockholders attended and full re-
port of the affairs OF the company
vas made to them by the officers.
A committee from the stockholders,
DIR. e. c. L. Miller, chairman, and
w. C Locker. secretary. was appoint
ed to investigate the affairs of the
company and make recommendations
Thetr printed report was sent to each
siockholder and published in all
newspapers in the city. One OF the
recommendations of this committee
was that the directors be instructed
TO force, II necessary, every stock
holder to pay up his subscription. the
failure on the part of the stockhold-
ers SC to do having been the cause OF
the company's embarrassing The
directors had been len!ent with the
stockholders largely because we were
81 rnrfnH of
g cute business depression. Many peo-
pie were out OF work and others were
working on reduced salaries.
Attacks Begun
AS soon. however. as the officers
and directors complied with the in
structions of the stockholders COM
mittee. those who had not paid any
installments or who had paid only
q portion thereof. protested and some
of them resorted TO all kinds OF at
lacks on the company. Its officers ana
directors, through the daily papers.
A state of alarm was created. con-
fidence was shattered and the strong
est bank here or anywhere else could
rot have withstood the effect or the
utterances which were
river widespread circulation. y....
A directors meeting was thereupon
called. TO which all the members OF
the stockholders committee were In
vited together with the attorney of
the company, Mr.. Joseph c. Taylor, TO
consider the most advisable course
for the company to pursue. The COM
pany was not insolvent and could not
be put into bankruptcy. 1t had within
the past few months prior to the
meeting greatly reduced Its indebted
ness. but the directors. after long and
confederation. by unanimous
vote and with the approval of those
members of the stock holders COM
mittee. who were present, resolved to
petition the court to appoint re-
ceiyer TO take over the affairs of the
AS a creditor of the COM
pany, A asked TO be- excused from Fot-
ing on the resolution.
Since that time. the latter part OF
April, 1915. the affairs OF the COM
pany have been solely IN charge of
the court. and neither the officers. di-
rectors nor myself have had anything
to DO with the management or con-
troll of the same, and during all this
time / have not received a cent of
rent, although continuing TO meet the
heavy obligations entailed by taxes,
insurance and interest.
Assumed Large Liabilities.
At one tirae. In addition to the
amounts expended above. l had as
sumed liabilities on behalf OF the
company in guaranteeing accounts.
cash loaned. etc, amounting to s15.-
600. I was, of course. under no obli-