Evening journal., 1920-11-16

was fecallcu 10 tne stand by Mr.. Rein
hardt and testified the sale OF TIE
Henlopcn TO Pennington was not dis
cussed at the directors meeting OF
August 4, 1917, and that he did not
know anything about 10 and the resale
for $4,000 until the morning OF
me stockholders meeting on August
10. 1917.
The witness denied that he in any
way assisted Loland and Lank in
diverting funds Of the company. He
the sale 10 Pennington II he had
Company had sold the Henlopen for
$4,000
At this point divergence OF inter
ests OF counsel for the different de-
PENDANTS developed Mr.. Reinhardt
had examined Mr.. Bayliss on direct
examination. and when ne got
through Richard 5. Rodney. OF coun-
sci for the defendants started TO
cross-questlon him. Mr.. Ridgely OBJ
jected, and said IL was an unheard OF
uhing for counsel 10 crOss-questiOn
his own witness. Mr.. Rodney said
Mr.. Bayl.s was not his witness and
therefore claimed The right TO cross
examine him.
Mr. Reinhardt stalled that ne and
Daniel J. Layton represented the mi
norhy directors, Messrs. Bookham-
mer. Baylis and Thompson. Mr. d..
Rodney and John NJ. Richardson. u
was stated. represented the majority
directors, also defendants. Messrs.
Lonand. Lank. Jos IN and Tunnel
At this point George \. Davis said
:. also desired the right 10 Cross
.amine the witness. He said he rep
resented Robert Pennington and the
LcNes oil and Chemical Company
Chancellor Curtis decided IN at while
il was unusual both Mr.. Rodney and
Mr. Davis should have the right TO
cross-eXamine the witness IN they de-
sired. Mr. Davis was crOss-eXaminins
Mr.. BaylS when court took a rec IS
At The afternOon session Yesterday
Mr.. Rid1ely continued ths crOss-
examination Of Mr.. Baylis, one OF .he
defendants. who was a director Of
the Lewes Fisheries Company. Ths
witness said heh. as a dir00b0r. never
took any money for extra eerviGS
from the LEWIS Fisheries Company
except when 70 was auihorzei by
resolution. Mr.. BayliS. how YER
could not state when the resolution
10 pay him as a dircctor 5000 FOR
extra services was adopted by The
board In certain years spooifled by
Mr. Ridgely. but said the books OF
The company would show li.
In 1917. Mr.. Baylis said the FISH
ing season did not start until SOM
time in June and the company was
sold 10 Pennington Aug5st 10. OF
that year. His extra service thai
year he said was in the form OF
getting ready for the fishing season
What was received by The directors
H. said. was for services Rendered
snd was moi salary.
Mr.. Rdrsiy addr isa' ng the wit
ness said tho minutes Of The boar
N directors Of March %. 1911 show'el
that the president and seciytary ol
tn company were authorized 10 ar.
range Tor the sale of the company.
stock and that ihc minutes OF
inviting OF the directors OF April 20
1911. showed that the President TO
nOrted he had arranccd with LaytoI
and Company, brokers Of Phiadel
phia. for The sale ~ the balanda o.
the unsold stock and asked The wit
ness II that was true, 70 which M
replied 70 was.
"On Oclobori2. 1911. the director
discontinued the services Of Layton
Why was that done?" Mr.. Ridgel
asked.
'eBcause ne could not sell an,
mora OF the stock" the witness re
pliod.
Mr.. Ridgaly questioned the wit
ness about a resolution adopted b.
Tie board OF December Z. 1911. Q
recOmm nd 10 the Stockholders tha
| The capital stock be Increased frOn
$4,000 to $4,000.
Mr.. Baylls testified that in the an
sNGr made by him 10 the origina
suit OF Charles v Jones against th
company for receiver n 1915, M
I iefcence WIS made tO the IS share
OF stock vOtod DO tho directors.
The witness said 10 looked bo hin
! that the directors wNrcs entitled 4
some pay for getting a lsase from
the town for land on which the plan
Was built for 81 a year when 0the
/ fishery companies Ware paying Si2O
year rnt TO The town 0f Lewes
| lie said whan Bhis lease was Sc
cured no directors OF the oompan
were town commissioners To the BIS
q his knOWlciga.
On redlrect examination Mr.. Bay
/ lis said there was too much wOrl
/ OF the Lewis Fisheries Company 70
ore general manager 10 attend 10.
Thomas II. Carpenter. Of LeveS
a pilot for 81 yeans, testified that n
was a stOckhOldfr OF the cOmp1n
and that he attended The SbOcbhold
crs' meetings, at whioh The book
were on hand for any stOckholde
I who desired to examine.
/ The witness was examined on dl
rect examination by Richard s. Rod
ncy. lie said he knew all M N
directors OF the company knew O
their activities with the company
which he thought was beyond tha
Of a mere direotor.
Mr.. Carpenter testified he wa
president and a director Of
I bank OF which Mr.. Isank. one OF IN
defenadnt directors OF the flsherie
company WAS cashier. Nj. Rosine
atB mpted n question the w6tpes
as no the services which Mr.. Ian
gave The Lewes Fisheries Oompan,
| hut Mr.. Ridaaly obiected n tia
line Of testimony and was sustaine
by Chancellor Curtis.
Capiain Carpenter said he consid
cred from what ne knew OF thel
work that the direcbCrs OF the CON
lpany earned the $1,000 a YEAR re
ceved hv hem for extra seryioes.
Captain Brown testified me IA
been in the MehadCi fish bushes
for - years, and was With the I,ewp
Fisheries Company for five years
lin 1917. ne left the company 10 ente
The service OF The government an
ran a mine sweeper.
The witness testified that some o
1.-The directors OF the Lewes Fisherie
Company went out with him on IN
loiber work done by the director
when he would return with a hi
lcatch. He said the Mcnhaden rs
season lasted from several days 9
several weeks. A good catch for IN
steamer Henlopen, The witness saiC