Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-10-27
REWRY-HUGHEs CASE
TO BE REVIEWED BY COURT
rit OF Error Granted In Case In
volving Payment Of Cunu-
lative Dividends.
EEviEws CoMpANY's HISTORY
curt Declines to Intervene in Action
or Jacob Is. HOlIer as Tax Payer TO
frcScnt Issue OF Road Bonds in
Campbell County.

CalnpDcil County.
By granting it a writ OF error and
upersedcas to the decree of the Law
nd Equity Court. OF this city, the Su-
RENE Court OF Appeals yesterday
ave the rrewry- Hughes Company, "A
irEc itichmond wholesale dry goods
nj notion firm. another opportunity to
emonstrate that. under its charter
PROVISION. II is not compelled to pay
hohlcrs of It's preferred stock a
cumulative dividend out of assets
Which 1t has held since carly In Tho
car 1919. when, by going into the
ands of friendly receivers. II virtually
performed an act of voluntary bank
uptcy
TIL, case came to the Supreme Court
appeal from the decision of Judge
'crerley i. Crump. who. as arbitrator
pom statement of agreed facts. de-
ldcd thai C. w. Throckmorton, holder
eight shares of preferred stock.
alued a, $4,000. in the corporation
ince 1912. was entitled. after the com
|nnEs virtual reccivcrship. to his rcGu-
ar per cent dividend. payable, un-
er the termg Of the charter. in semi
|nnual installments.
Alleging that it has not earned n
ent of rrotits since January /, 1914,
when one Of its notes for $4,000 went
protest ana three Richmond banks.
n which II was doing business. soon
fterwards notified It's officials that,
Mess new blood was infused into its
arrangement and at least 500. 900 new
ash capital added, they would b..
creed 10 ask for II settlement the
oinpahE declines responsibility for
cumulative dividends since January,
PA. but promises that, If possible,
olders OF preferred stock will he paid
he.
aluc.
iLAlns DIVIDENDS UNDER
CHATTER ARE CUMULATIVE
The charter of the company was in.
oked by Mr.. Throckn0rton to show
MT. under it's provisions. he is en-
iticd 10 his dividends from remaining
Ssets after icccivcrShip. The section
eating TO stock reads as follows:
The preferred stock is TO be entitled
receive dividend OF per cent Der
mum and no more, out OF the net
arrings cf the company every wear.
he paid scmi-annually. or othcrwisc
inc directors may determines and
$ ciaim to that dividend. ii not earn
IN any on" year. Is to be cumulative
fa 10 constitute preferred charge
yer the common stock on tho income
rnccecdinH years un,il the same is
'ScEargeI. Ana the preferred stock
; likewise to have a prior claim. in the
vtnr Of iiTutdation or dissolution. to
ne amount OF it's face value and Of
ny arrears of dividends due and nm
ala to II upon the assets OF the com.
'H! over ana above the common
took"
Soon afterward II was found in IeI.
nat the affairs Of the company were
Such prec3r!ous condition, the board
u directors met and agreed to author
re tee president to comply with Tho
feauirements OF the three Richmond.
anke accordingly. tthc BUSINESS. Of,
he hrm was IjIaced''in the hands Of
ohm NJ Miller. Jr., Vice president OF one
4 the banks. and J. Harvic Williamson
hat action was ratified by the stock
'oldcrs at a meeting in January. 1919
ho inc iiiuidators were authorized by
resolution 10 rcplenish the stock and
10 such other things as we're for IN.
'est interests OF the creditors and stock
holders.
<NHIT OF ERROR IN
Southampton CASE
j. w. Smith was awarded Il writ OF
1rror and supcrsedcas to the decree of
he Circuit Court of Southamn.on
county: which set aside the sale a,
'uhlic auction OF house and lot.
Fought by Smith, on the complaint az
he siver of the deed OF trust, under
which /; was sold, that the trustee wns
lot authorized by him 10 sell the land
fnd that the sale Of other property.
banned first In tho deed Of trust. sar
SIZED the claim against him. The PC
4itioner has spent nearly $1,000 on
he property since no acquired il For
ibis, he says. the court has allowed
Ilo recompcnse.
The Norfolk Southern Railroad was
GRANTED writ Of error from the Circuit,
curt of Princess Anne County. which
awarded &. y Whitehead damages i'm
he sum of $500 for injuries alleged TO
have been sustained in Il collision be-
ween Whitehcad's automobile and one
pr the company's trains.
The court refused TO interfere with
pho decree OF the Circuit Court OF
campbell which refused to enioin, at
fhe instance of Jacob r. Holler. tho
Board Of Supervisors Of Campbcu
County and the Peoples National Bank
pr I.ynchburG. from issuing and buyinc
100000 worth OF road bonds. Holler
g taxpayer, and alleges. first. thar
he law under which they were Issued
! s unconstitutional, and. second. thu
granting its constitutionality, il has
been repealed.
a writ of error was refused the
american Seeding Machine Company. In
ts case against the Ouescnburg Lumber
company.