French Broad hustler. [volume] (Hendersonville, N.C.) 1916-1919, 1917-01-18
MINORITY STOCKHOLDERS FILE
SUIT AGAINST TANNIN COMPANY

| SUIT AGAINST TANNIN COMPANY
Complaint in q. S: District Court Asks
for Receiver and Writ of InjuHc-
ton Against COmpany's Omeers'
A complaint in equity filed yester-
lday with w. S. Hyams, clerk OF the
United States court, by minority STOCK
holders in the Brevard RTannin CON-
Ipany, says the Asheville Citizen, asks
for a receiver and a writ of injunction
against that corporations officers to
prevent them from interfering with or
disposing of any of the property OF
the 100000 corporation
Among other allegations in the COM
plant are charges of intent to de-
fraud, of alleged Illegal contracts
made by the directors Of the company
| by which thep profted to the detri-
ment Of the company and the minority
stockholders. Of so-called illegal issue
and delivery of stock, Of transfer of
valuable timber lands at grossly
inadequate price"
The complaint is filed on behalf of
Charles G.. Krouse and Louis T. Mc4
Fadden, of Pennsylvania, minority
stockholders. and is directed against
the Brevard Tannin company of Pts
gah Forest end William F. Decker of
Asheville. Mark w. Brown and Clar-
ence E. Sprunt are the solicitors for
the complaints The document COM
prise snearly thirty pages and many
of the allegations contained therein
are of a sensational nature.
The complaint names as defendants
the Brevard Tannin company of Pts
gah forest, Edward D. Adams of New
York, George L. Adams of Pennsylva-
MIA, and William F. Decker of Ashe-
vile. 1t states that these men are duly
elected and acting directors of the
company, George L. Adams being its
president and treasurer, as well as
manager. Their joint holdings COM
prise majority of the stock issued.
The Complaint.
The complaint reads:
"That the total authorized capital
stock of the company is $500 900 d. |
vided into 5000 shores of the par
value of 800 each, of which total au-
thorized capital stock. $500 shares
are preferred and $500 shares are
common; that of the authorized issue !
of stock of said company 1,250 shares |
of the preferred and 1,15O shares of |
the common stock have been issued: |
that said Edward D. Adams is the |
owner of ITO shares of the preferred |
and $40 shares of the common stock /
Of said company; that said George L. /
Adams is the owner of 335 shares of |
the preferred and Gil shares of the |
stock of said company; that /!
said William F. Decker is the owner
of 100 shares of the common and 100 !
shares of the preferred stock; that the !
joint holdings of the thre named con-
stitute majority of the total issue.
THAT the defendants fraudulentIy j
confederating together, with the in
tention of defrauding the Brevard /
company and the complain
ants caused to be issued to William
F. Decker 100 shares of the common /
stock of the company, of the par
Talue of $4,000, for which no consid-
Grafton passed from any OF them to
the company but the same was issued
and delivered to William F.. Decker as
4 part of an unlawful and fraudulent
agreement between the said Edward
D. Adams. GEORGE L. Adams and Will
lam F. Decker
The full details of this transaction
are told in the COMPLAINT. The con-.
olaint also alleges that on March Is. /
1913, the said Edward D. Adams !,
George L. Adams and William L.
Decker caused to be executed a deed /.
IF the Brevard Tanning company to
John W. McMinn. for the nominal
of SO, conveying to Mr..
McMinn certain tracts of land for
$4,000; that there was no warrant
Dr. authority given the three defen>
1ants either by the stockholders or !,
he directors to make the sale. and it
IS alleged that price was grossly in
=
Contract Cited.
The complaint then states that on I,
October %, 1912. William Decker. one
If the defendants named, made CON-
.ract with Louis Carr, which contract /,
vas subsequent assigned to the Carr
Lumber company, by which Mr.. Deck
er was to receive all the wood disable
n the making of tannin extract from
/ certain tract of land of approximate
y $4,000 acres, the property of the
Vanderbilt estate; that an interest in
he said contract was subsequently as
signed by the said William F. Decker
% said George L. Adams; that at the
lime of the negotiations leading to the
contract between Mr. Carr and Mr..
Decker. that Mr.. Decker was acting
or the Brevard Tannin company. and
hat the contract was made for the
benefit of that company In spite of
his. the complaint alleges, Mr.. Deck
IF took the contract in his OWL name
md refuses. the comnIainf states to b