The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1920-10-01
CHARGE IN
MOULDER OIL CO.
SUIT IS DENIED
DEFENDANTS TAYLOR, SHERRILL
AND FiGUERS FILE ANSWER. TO
JAGGERS AND OTHERS.
COUNTER ALLEGATIONS MADE
Charges That Stock Certificates
About Which Complaint Is Made
Were Signed by Complainant Nc
Clannahan---No Fraud Anywhere.
(From Mondays Daily Herald.)

(From Mondays Daily Herald)
Vigorously and specifically denying
every allegation made in the sensa-
tional bill recently filed by w. NJ.
Jaggers, V. A. Mechanism and 9th
ers, involving the operation of the
Moulder Oil Company, the answer of
j. c. Taylor, II. E. Sheriff. and T. N.
Figuers, Jr., was filed this morning
in the chancery court.
The bill denies any wrong doing on
the part of the defendants and charg-
es that the very acts complained of
were participated in and approved
by " A. Mechanism, the president
of the,scompany, who, it is alleged,
signed the certificates OF stock for
$4,000 (which he now charges were
improperly issued to the defendants.
Sheriff. .and others. 1t is alleged that
other acts, particularly the efforts
made to sell the property of the Moul-
der Company in a syndicate with the
property of other oil companies, had
the approval of complainant McClan-
ahan.
The answer summarizes the bin
into what il terms are really only
three 4 charges made against the de-
PENDANTS, the other allegations, 1t is
stated, being vague and uncertain.
AS to the charge that $4,000 of the
stock of the Mounted Ooil Company
was fraudulently and illegally issued
to the defendants, they reply that this
stock was part of the consideration of
transfer of the property Of the Hamp-
shire Oil Company, that the stock
was issued with the approval of Cam
plainant McClanahan and had his sig
nature on the stock 1t is set out in
detail that the arrangement made for
the conveyance of property OF the
Hampshire Oil Company provided for
the issuance of this stock and that
every proceeding Hereunder was in
strict accordance with the laws of
Kentucky, where the corporation was
chartered.r,....----.,-.--- -, .,-.-..- ,,,.
Touching the next charge, that of
having paid out of the treasury, of the
company, $500 for leases to property
in Knox county, it is denied that there
was any fraud. on the contrary it is
stated that all of the stockholders
were anxious to close the deal that de-
PENDANTS, were trying to make with
Levan for the sale of all the proper
ties, and that it was agred that it
would aid in making the sale to have
additional holdings. That these leas-
es were acquired by Defendant Tay. |
lor and that he was paid the cost of |
the same, including the surveying, ex- /
animation by experts, etc However |
since the deal with Levan for all of |
the oil properties has fallen through |
defendant expresses willingness to
take back the property at the cost
thereof to the company, as the de-
velopment of oil lands in kox county
might not prove profitable to the COM
pany.
With respect to what is termed the
third charge, that of linking the prop
erty of the Moulder Company with
that of other Kentucky and two Tex
as companies in an attempted sale to
one Levan, the defendants declare
that the bill does not charge that the
Company was not getting
value received for its property under
the proposed deal, and it is further in
sisted that all of the shareholders, in
Guiding compliments, were in favor
of putting through the deal.
Charges made by the Complainant
with respect TO the alleg- I