Evening journal., 1919-09-12

been held by the defendants ever since
That moneys of the company were
wrongfully paid as dividends ON said
stock aggregatng sixty per cent. OF
the par value of the stock; the payments
being made at the times and in the
amounts that dividends were declared on
the legal stock OF the company.
That of the increased number Of
shares of stock authorized by the amend
ment of its certificate of Incorporation
only s55 were issued.
That OF the s55 additional shares, 42O
shares were fraudulently and unlawfully
issued by the six defendants, being ofli-
GERS and directors Of the said Lewes
Fisheries Company. each receiving 10
shares without the company receiving
from the defendants, or any OF them
any lawful consideration for the said
stock.
That the said 420 shares were issued
about February 1912 and have ever
since been held by the six defendants.
That TO cloak the said fraudulent and
unlawful act the defendants being olii-
GERS and directors of the Lewes Fisheries
Co mpany, did severally deliver TO them
selves as such officers their respective
individual notes for the par value OF
the stock so fraudulontly issued.
That the 420 shares were treated by
the said officers as stock issued legally
and moneys of the company were
wrongfully paid as dividends on said
shares dggregating forty per cent. of the
par value at the times and in the
amounts that dividends were declared
on the legal stock of the company
That 10 further mask their fraudu-
lent and unlawful act, the six defend
ants pretended to make payments on
their notes by pretending to apply on
the said notes certain of the moneys so
wrongfully paid 10 them as dividends. I
That in still further effort TO con /
ceal their said fraudulent and unlawful
act, the six defendants have from time
10 time pretended also TO make payments |
on said notes of certain sums of money |
which they pretended 10 be seyerally /
due them from the company on account /
Of salaries, as officers and directors, |
whereas in truth and in fact no such /
were due them.
That the defendants pretend that
their notes have been paid in full,
whereas in truth and in fact no law
ful payment has ever been made ON any
IF them.
That William c. Lofand, William II.
James L. Iank, John r..
Baylis, William j. Thompson, William
=. Tunnel and Harland NJ. Joseph, have
Turing the terms for which they were
'lected TO the directorate of the com
,any fraudulently and unlawfully APP
,ropriated to themselves. and TO each
,ther, from time TO time large sums
# money belonging 20 the company.
That to conceal said fraudulent and
Unlawful act, the defendants last afore
aid pretended that the said sums OF
money we're appropriated as salaries
ue to themselves as directors of the
ompany, whereas in truth and in fact
here was no warrant or authority in
aw for the payment thereof
That on September %, 1911, the de- .
endants wrongfully appropriated TO ,
themselves $4,000 out of moneys be-
onging 20 the company, and the fur
her sum of $4,000 ON July H. 1914 and
he further sum of $4,000 on August |
IS. 1915, and the further sum of $4,000
N August 10. 1916, and the further
um of $500 on November Q, 1916, and
,er 26. 1917 and the further sum of
{
ivers other large sums of money were 4,
-rongfully appropriated at divers times r
Y the said six defendants TO them
elves out of the moneys of the Lewes a
isheries Company, the several amounts g
hereof unknown 10 your orator and the n
i'd six defendants refuse TO discover r,
he same. ~
That despite the fraudulent and un- u
wful acts and conduct of the defend Z.
lt directors and officers the company
da flourishing and profitable business =,
ON shortly after its organization un- +,
il was deprived of its assets as here :,
after set forth. n
That during the said period, the com \,
my paid dividends on its stock aggre-
Iting sixty per cent. In,
That during July 1917. the company q,
as in a fourishing and strong finan. ~
al condition. That 10 10 held and own =
two steamers. the Henlopen ana !,
INES NJ. Clifford, its factory near -
swes fully and adequately equipped -
ith machinery, for the manufacture of v
N scrap and OIL a large quantity of j..
rap and oil the product of its fac ~
ry, large quantity of fuel for the N
,eration OF its factory, and other per- =,
nal property and had upwards of $780, VI
o in cash and accounts receivable over
ID above its bills payable and other ~
debtedness. =.
That at said time the market for the ~
mpanys product, was very strong and -
c prospect excellent for the continu-
ion of such a market for several y. .I
ars at least ~ ~
10. That during July, 1917, William h'
Lohand and James I. l.ank formed 'h
fraudulent and unlawful scheme TO
sert from the company a large por- m m
IN of money and assets of the COM oil
ny, and to put the company out of co
siness in order that they and GER III
in of their friends might enjoy the
ID money and assets. an
That 20 better carry out their scheme 10
d in order to conceal their object and US
rpose, LoHapd and Lank determined III
make il impossible for the Lewes
sheries Company TO continue its bust ma
ss and TO form a new company con pr
He'd by themselves and their said we
ends, and to secure to such new com su
ny the business heretofore carried on
the Lewes Fisheries Company. g'
That to carry out their said scheme, COZ
steps set forth in the succeeding OF
agraphs of this bill were taken by OF
m, or taken by the directors and ol
ckholders of the Lewes Fisheries ,ol
mpany by and through their per- g lSv
sion and Misrepresentation. 'H'
That at the time the said scheme was VI
H. GU ragaa 80 az n',;,,.,. auC
''iaul M .n i.onu " a .te iI ~ Psslas,a' the
1as Ia ln"SS ~ ~ .nV 7 sha .o,l,psas p. on
treasurer. ~