Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-04-29
COLBy'S LAW FIRM
PAID 100000 BY
COCA COLA COMPANY

The taking of testimony before
Commissioner Harvey l.. Parry in
the injunction proceedings that have
been instituted by the first line bot
tiers against the Coca-Cola company,
of Delaware, was resumed Tuesday
morning in the offices OF King &
Spalding, in the Empire building. At
the very outStart opposing counsel
clashed over the possession and rele-
Vancy of a book containing the min
utes of meetings Of the board OF d.
rectors and the executive committee
of the Coca-Cola company, which had
been produced by order of the court.
The excitement occaSioned by the
clash between Ben Il. Phillips. coun-
sci for plaintiff, and Harry Hirsch.
Robert l.. Austin and other counsel
for the defendants, finally was adj
justed amicably and Mr.. Phillips
read from the minutes certain eX-
tracts to which opposing counsel not
ed objections.
Subsequently S. C. Dobbs, president
of the Coca-Cola company, of Della
ware, resumed the stand and was
examined by Mr.. Phillips. Among
other things it was developed thai
in 1917, the old Coca-Cola company
considered reorganization that in
volyed disqualification of the com
panys good will on a valuation of
SEE, 100000. The scheme was to
amend the charter of the original
company, and Colby and Brown, at
torneys of New York, submitted a
plan of reorganization. This plan
was not carried out but instead bene-
the original $4,000 capitalization of
the old company. For their services,
Mr.. Phillips developed. that Colby
and Brown received beneficial certi-
ficates to the value of 100000.
Answering Mr.. Phillips, Mr.. Dobbs
stated that Mr.. Colby mentioned in
the firm of attorneys was cambridge
Colby, who since has become secre-
tary of state.
Mr.. Phillips examined MI. Dobbs
closely as to the character of SER
vices rendered by Colby and Brown.
Mr.. Dobbs was unable to give any
definite information. Although, he
admitted that he was a director of
the company when the reorganization
was effected.
Money Not Fee
subsequently, counsel for the Coca
Cola company of Delaware explained
to representatives of the press that
the stock certificates given to Colby
& Brown was in settlement of the
claim for All alleged breach of con-
tract growing out of such negotia-
lions which was handled by this firm
of lawyers on the sale of the original
Coca-Cola company to a syndicate in
ANCW L VI ~ IlCctuCu NY SOLpJ ~ III " w IL
The money represented by these GER
titicateS was in no sense a fee.
1t was stated further that at the
time of these negotiations for the
sale of the company one member OF
the Gambler family declined to dellv-
er his stock and that Colby & Brown
made the claim.
The hearing began with Attorney
Phillips IN possession of the minutes
Of the Coca-Cola company. He was
reading from the minutes of a meet
Ing OF the executive committee OF
December Is, 1919, which was held in
New York, from which it appeared
that w. {. Bradley announced that
plan for adjusting the differences be
tween the bottlers and the Coca-Cola
company had been decided upon. MIR.
Bradley, according to the minutes,
read letter from Messrs. Dobbs,
Hirsch and Gambler, it which 1t was
stated that the Coca-Cola company
would receive $1.25 per gallon for It's
syrup, giving to the company profit
at the prevailing cost Of Is cents a
gallon. H..
The letter stated that at, no time
was the company 20 receive from
the bottlers less than $1.1O per gal
Objections Entered
Counsel for the Coca-Cola company
objected to this extract from the
minutes going into the record. They
insisted that the minutes had been
produced with the explicit under
standing as to what would be taken
from it. Mr.. Phillips denied that
there was any such understanding,
insisting that it had been agreed
orally not to look, up salaries ana
matters of a strictly personal rela-
Mr.. Hirsch, General Clifford j..
Anderson, Mr. Austin and other coun7
sci demanded possession of the book.
Mr.. Austin sought to relieve Mr.
Phillips of it, but he insisted that
it was in his possession.
Mr.. Hirsch crossed the room and
took hold of the book which Mr.,
Phillips still held firmly.
Note, Mr.. Commissioner said Mr.
Phillips, the opposing counsel IS
trying to take physical possession OF
the book, which is in our possession
under formal order to produce"
Finally the book was returned to