Evening journal., 1920-11-16

no boats. In 1911. the company
bought the steamer Breakwa,er and
in 1911 and 1912. the boats Oity OF
Lewes. Henlopen and Rehoboih were
buit at Milford. The directors as
sisted in hurrylng the construction OF
these boats.
Mr.. Lank testified that the directors
had 10 personally endorse notes 10
carry on the business OF the company
In the early stages and sometimes had
considerable trouble In raising money
in New York, Philadelphia. Whining
ton and Baltimore even with their
endorsement
He said the directors gave heir
personal notes for the 20 shares OF
stock issued 10 each OF them. The
witness did not know whether or not
the directors OF the fisheries com
pany owned a controlling interest.
Mr.. Lank said the FIRST three years
the company was in existence he
gave practically all his time outside
OF the bank Of VII lch he was cashier,
I 10 the company. That was After
moons and evenings Last two years.
hr did not give as much time 10 the
affairs OF The company.
The witness was crOss-eXamined by
Mr.. Ridgely. and said he did not know
until about two years ago when in
formed by John NJ. Richardson, cOun-
eel for the company that the bylaws
and charter did not provide for pay
ing the directors for services but add
cd he did not think the payment or
such services was prohibited by the
charter and bylaws. When they
were paid for services, ne said, u was
/ by resolution adopted by the board.
Mr.. Lank said he did not know at
this time how much stock he owned
In the company. but added the books
would show that. lie assisted the
other directors IN selling stock at the
beginning. In 1912. he said, was the
first time the directors voted money
10 themselves for servics rendered
. Tho witness said he did not know
whether or not a resolut on was pass
cd authorizing the payment OF 1900
/ To the DIR ctOrs and did not consider
a resolution was necessary for the
payment OF the money. lie said he
had earned il and IL was understood
that tho directors were 10 get money
for extra services
He Gestined 70 the directors voting
$1,000 to hcmselvs for services sew
eral ears.
Mr.. Ridg Iy questioned Mr. I.ank
as 10 an affidavit he made In NOvem-
her, 1917. in The recelv, rship suit. The
lWitness said 10 appeared in that am
daylt made by him that the dlrectors
had voted 500 year 10 themselves
FOR services.
In tho spring Of 1911, Mr.. Lank said
the company had It's plant partly
completed and one boat. In 1912 there
were 3 boats and the plant and in
1918 four boats and the plant He
said in November. 1911. the company
InuH nlWnNH - NnnN not on
per cent. dividends were paid to
stockholders.
The witness admitted that there
were no financial statements or rs
ports that would show the payments
to the directors for services. Mr.. Lank
said he was paid $500 as treasurer in
1917 which was in addition 10 what
he received as a director. Previous
10 that year Mr. Thompson and be-
fore that Mr. Baylis served as treas
urer and they received a salary as
treasurer when they served In the
on redirect examination the wit
ness said while ule amounts paid
b the directors for services did not
show on the financial statements,
they did show as separate Items on
the books Of the company.
George +. Nickers OF Lewes, a
stocM older in The company, SAID ne
saw the directors at meetings at
nisht and saw them hustling around
I TO get wOrkmen when the signal was
received that the boats were coming
T in with FISH. lie told OF hearing street
gossip that the directors were receiN-
ing q salary as far back as 1915 ant
- said from what he knew OF the wOrl
the directors were doing he would
- not have their jobs for $1,000 a year
7 Thomas Ingram, OF Lewes, tesiife,
that he had observed and had beer
{ told OF some OF the activities OF IN,
} directors OF the fisheries company ir
behalf Of the company The witnes,
3 said In his opinion the notes given bl
! Lonand. Josephs. BOokhammer. Lank
2 Baylis and Thompson, directors, fOi
} $1,000 each 10 the company for e
shares OF stock each were good at the
Time IlnN ANnrn gINnn.