The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1919-07-22
Following is the OPT Mon in full:

This suit is brought by stockhold-
ers of the Farmers Telephone Com
pany to recover for the company,
from Henry M Black, its president,
secret profits made by him in secur-
ing the transfer of certain property
rights of the company, and the con-
troll of the company, to the New York
Telephone Company and the Delaware
and Atlantic Telegraph and Tele-
phone Company, known as the BELL
Companies" in breach of his trust.
The facts are not in dispute. The
Farmers Telephone Company is cap
italized at 100000, divided into two
thousand shares of the par value of
$50 and was a dividend paying cor
poration. Black owned upward of
500 shares and controlled others be-
longing to members of his family; the
remaining shares were held by farm
ers and merchants in the vicinity in
which the company operated. He
was the largest individual stockhold-
er, and had been president of the COM
pany for many years. The company's
telephone system covered an area of
approximately $50 square miles, con-
Meeting communities in Burlington,
Monmouth and Ocean counties, local
ly and with "long distance" and it
had the exclusive right, by contract
with the Bell companies, of furnish
| ing telephone communication within
this district. In June, 1917, just after
we entered the war with Germany,
Wrightstown, within the district, was
selected by the Federal Government
as cantonment-Camp Dix-and the
Farmers Company installed tele-
phonic service, and engaged with the
military official IN charge of the
camp to provide for future needs and
to that end arranged with leading
supply company to furnish the equip
ment. Shortly afterward the Farm
ers' Company was notified by the sup
ply company that the Bell Companies
would install the system at Camp Dix
and that the equipment would be fur
nished to those companies. Without
notice or apology the phones of the
Farmers Company were disconnected
and the phones of the Bell Companies
took their place And this is the ex.
PLANTATION: Black secretly agreed with
the Bell Companies to release then
from their exclusive grant to tbs
al lllCIo VI Lie
rights to Camp Dix, and to deliver tx
them at least 55 per cent. of the cap
ital stock of the Farmers Company
on or before August LIST, then next, il
consideration that the Bell Companie!
would purchase his holdings and add
tional shares up to 80 per cent. a
par. The Bell Companies furthe
agreed to pay Black S45, 200 if he pro
cured to be delivered to them within
one year all the shares at par, or 81
per share if over 80 per cent, or 81
per share if over rs per cent, or S
per share if over 55 per. cent. be de
livered. The arrangement was at frs
verbal. Black employed crude, but b
no means, original, methods to accom-
plish his purpose He browbeat tn
twelve directors into handing owe
their shares by the threat that
would so manipulate the compan
that it would never again pay div
dend, and they believed him, and the
he salved them with a promise of s
y per share above par if they would az
cede, of which they have not, as We
. seen the color, and he sent his emf
saries with the same bug-a-boo to tt
v remaining stockholders, with the r.
/ suit that he gathered in all the stoC
except the eighty shares held by Il
complainant, DR.. Kelly, who refuse
l. to be intimidated. When Black secu
% ed the holdings of the directors, son
four or five hundred shares, he caus,
10 to be re-issued to each of them
n single share to colorably qualify the
b as a board, but he was careful to e
\. act an assignment in blank of the ce
tifcates. He then, under date of Jul
20, signed as president, an agreeme
N between the Farmers Company al
it the Bell Companies, releasing the e
10 elusive rights to Camp Dix, and und
- date of July 2 he executed anoth
re personally lit is fair to assume tn
st were executed simultaneously whel
in he and the Bell Companies reduc
to writing their verbal arrangeme
9 that Black was to obtain the relea
= and deliver to the Bell Companies t
o. control of the Farmers Company. I
agreement recites that it is enter