New-York tribune., 1920-12-19
Receiver Asked
For Coodv
Tire Company
Ohio Attorney, Siockholder.
Saws Directors Declared
Dividend and Borrowed
Funds With v hich to Paw
Attacks Is Nillicen Loan
Asserts Investment Com
pauy Has Beeu Used to
Clean Up Vast Profits

COLUMBUS, Ohio, Dec. lS.-Appoint-
reat oi receiver and an accounting
~ tic affairs of the company was
soush. IN Il suit filed here today
acairs. the Goodyear Tire and Rubber
Company of Akron. BY Frank 5. Mon
net. Columbus attorney and former
Attorney General of Ohio. Mr.. Mon
nett said in his petition chat he is the
owner O., forty-hvc shares of pre-
fsrrsd stock in the company.
III his petition, Mr. Monnett says
tina. the directors OF the company is
sued 2is per cent dividend last fall.
when they had 10 surplus on hand
gith which to pay it. sud that they
derived funds for this purpose through
the borrowing of money on the sale
Of stock.
The petition alleges this stock
amounted to $27 100000, that the COM
psny received less than IS per cent,
and that brokers received the remain
der, and that the issuing of this stock
vas in violation Of the terms of other
nreferred stock He claims that the
issuing Of that stock damaged the pre-
ierred stockh holders to the extent of
s4s,0o0,000.
Recently Borrowed $2S,000,o00
The pet t;tion further says that on
July !, 1920, the directors issued 100
pey cent stock dividend, or $31 1877 500
in common stock, and that there was no
legal authority for such issuance, as
the company was without q surplus.
MY. Monnett's petition also said that
the company recently borrowed $25,-
100000 at usurious rates and thereby
lost $500, 900. He also claims that the
directors now seek to authorize a fur
ther loan of s25,oo0.0Oo. which he asks
the court to enjoin them from con-
summating.
Mr. Monnett charges that the direc-
tors and members of the executive
committee Of the Goodyear Tire and
Rubber Company organized the Good
year Investment Company, which, he
charges, has been used by them as a
means OF making enormous profits.
The petition alleges that through
this investment company the Ohio cor
poration has made extravagant pur-
Ford Mortor Company building in Long
Island City, which was bought for
100000, the investment company as
suming mortgage of s750,000.
Bought Cotton and Rubber Land
Other charges made in the petition
are:
Loss Of $4,000 to the Ohio corpora
lion through purchase by the invest
ment company Of cotton ranch near
Bakersfield, Calf.
Loss OF approximately $4,000 900
through the org1-ization by the invest
ment company Of Goodyear Tire and
Rubber Company in California and the
Pacific Cotton Mills Company, and pur-
chase OF the entire common stock of
those companies for S5.000,o0
Loss Of approximately $1,000
through purchase by the investment
company Of $4,000 acres of land for
cotton cultivation in Salt River Valley,
AYiz
s5ooo,ooo Personal Profit Charged
Loss OF approximately $500, 900
through purchase Of 10000 acres of
rubber land in Sunatra.
Personal profit OF $5,ooo,0oo TO in
vsstment company through organiza-
ton Of Goodyear Tire and Rubber COM
psnies in ten foreign lands.
In addition, Mr.. Monnett alleges that
tne company in financial statement
last sum,ne. stated that its assets were
sl7c,tlo,000 and later admitted that
sais was sl8,0oo,oOo too high. The Pc
s.ion charges that It was S32,0000O
700 hish.