Evening journal., 1920-10-16
ROAD BUILDER
AFOUL COURT
d. D. Elder Accused of Vio-
lating Chancery Court
Restraining Order
SAY HE SOLD
COMPANY ASSETS

Alleged TO have violated a restrain
ing order issued against Elder and
Company. road contractors, by Chan
cellor Curtis on September 10. David
ID. Elder. president and q director Of
the company was taken into custody
on an attachment issued by the Chan
cellOr by Deputy Sheriff Thomas X.
Parker yesterday afternoon. and re-
leased on his own recognlzance.
The attachment was issued against
Elder 10 show cause before the Chan
ctllor at n O'Clock next Thursday
morning why he should not be pun
ished for his alleged violation Of the
In ihe case Of the Delaware Trust
Company against Elder and Company,
Howard ]. Cooke, OF Georgetown,
was appointed receiver for the de-
fCndant company, and on September
30 a restraining order was made by
the court restraining the defendant
corporation from In any manner dis
posing of or inoumberlng any Of the
assets and assets Of the corporation.
Mr.. Cooke has made aflldavli That
on September 70. when Mr.. Elder
was served with the order, Elder and
Company was the owner Of 81 per
cent. Of capital stock OF Elder Equip
ANNAN NaNliAI AINAANa "a hfAnNN NAN hNA III h
ton; that the Of per cent. OF capital
stock represented an the capital
sock Of the Elder Equipment Com
pany issued and outstanding That
David ID. Elder was also at the time
secretary and treasurer and a director
of Elder Equipment Company; that
the Elder and Company and the Elder
. Equipment Company had the same set
or directors Mr.. Cooke alleges That
the Elder Equipment Company was
simply a subsidiary company and
1 agent Of Elder and Company for the
purpose Of carrying on the business
Of Elder and Company.
The receiver further AYERS that the
stock Of the Elder Equipment Com
pany was issued TO Elder and Com
pany on or about September 2, 1920,
as The consideration for the transfer
OF all the road building equipment
then belonging 20 Elder and Company
70 Elder Equipment Company That
the transfer Of the equipment from
Elder and Company 10 the Elder
Equipment Company was for the pur-
pose Of defraudng The creditors OF
. Elder and Company, ana In order 10
avoid the lawful obligations and LA
bilities OF Elder and Company. that
the said equipment constituted an the
asNNNH ~ AlA'l LAAANlllNnN COMPANY
H. is further alleged that the chart
- or of Elder Equipment Company pro-
Vides that In order 10 dispose of all
the property Of said Elder Equip
meni Company. there must be a
written consent OF the majority OF
The stockholders thereof. and also
resolution Of The stockholders. grant
ing 10 the officers NJ the company so
10 dispose OF all its property That
after th- service Of the restraining
order upon Mr.. Elder. the latter. as
an officer and director of Elder aud
Company and on behalf - The COM
pany, n0tNiihstand ng &c order
took all the nec ssary legal steps
and In violation of the order, caused
an the property and assets OF The
Elder Equipment Company TO be die
posed % and transferred 10 ihe
Fidelity and DEPOSIT Company. cor
pOrat0 OF the State Of Maryland
and that a bill of sale enr an Of the
equipment and property was made by
Elder Equipment Company. signed by
David %. Elder. as secretary and
treasurer. on September i6. and that
an said facts and deeds Of the said
David D. Elder. as an officer and
director Of Elder and Company, were
in violation Of the restraining order.