Evening journal., 1920-11-16
SAYS HEEARNED
DIRECTOR PAY
continue From FIrsl page.l


$4,000 to $4,000 the directors again
tried 10 sell stock but met with poor
success. He said the company needed
money 70 pay for It's boats and other
iexpenses and the six directors agreed
10 take 20 shares Of stock. amounting
10 s7,0OU each, and gave their notes for
payment OF same. lie was asked II
the company in selling stock 20 others
had accepted their nots In payment,
but Mr.. Rldgelys objection TO this
question was sustained.
The witness said the directors own
ed from 900 10 1000 shares OF stock,
and that there were 2SOO shares is
sued lie was asked II the slockhold-
ers had eelcted a new board OF dircc-
tors. II they. The defendants) would
then have had access TO the notes 10
destroy them and he replied they
would not
Mr.. Bookhammer testified to the
directors rushing a shipment OF 1000
barrels OF oil one Sunday that made
the company 5000. Hhe said the spe-
cial services OF the directors made the
company a success. All money that
ne ever received from the company,
Mr. Bookhammer said, appears on the
books OF the company. The company,
he said. was doing a business OF $780,
900 TO si25,000 a year
on cross examination by MT.
Ridgcly. Mr.. B0okhammer said he had
been "a director since the company
was organized and that he expected
"a be- paid for his services when
elected a director
Mr. Bookhammer said he gave 50
much time 90 the work OF the Lewes
Fish cries Company that he neglected
his own business The witness knew
the board adopted resolutions 10 pay
the dir ciors 5000 a year. but d d
not know Just when they were adopt
ed and was not sure whether or not
such resolutions were adopted.
Air Rdgely asked Mr.. BoOkhammer
10 explain how the notes given by
the directors helped financially the
Lewes Fisheries Company This ques-
ton brought out that although these
notes were given by the directors the
company never received any money
on ihe notes. Mr. Bookhammcr. In
explaining 10 Chancellor Curtis how
ne thought the directors notes help
cd the company financially. said they
felt INC notes were good and that the
. company could get the money on
them IIo said. however, that the
banks preferred 10 have the COM
pany's notes with their lthe direc-
tors) endorsement and therefore, the
notes given In truth did not help
financially the company.
= Mr.. BOokhammer laid he bought
thc machinery for the boats from the
Harlan and Hollinsworth Corpora
tion. Wilmington. but denied that he
received any commission from the
fisheries company for buying the ma
chnery.
In detailing how the directors rend-
cred valuable service % .h' company
20 earn money thcy received, Mr..
B0okhammer told OF himself and
other directors going ont in the boats
after The fish, Mr. Ridgely inquired
OF the witness IL the directors had
any way Of attracting the flsh to
which ne replied they had not
lie was also asked n he captains
.and crews OF the boats did not put
forth their best efforts TO get FISH
when the directors were not along.
He replied they probably did, but that
they probably did better work when
the directors worn with -thrm The
company had about thirty TO forty
men on each boat and from nifty 10
seVenty-nye az the factory VII en-
busy. The company, he said. had a
general manager. a superintendent or
The factory and they had men under
them. Mr. LOnand. general manager,
goi a salary Of $500 a year
y
urcr of the Fisheries Company, who
was on the stand yesterday, was re-
called and testified as TO the amount
OF income taxes paid the federal gov
crnment for 1917, the year the boats
and plant were sold. The witness
said the company FIRST paid the gov
ornmen. S9i93i. 50.
A representative of the government
4hen went 60 LeNvs and after going
4 oil hn
owed si2S17.7i more. which was also
paid on September 81, 1913.
Mr.. Lank said the profit on t1e sale
nf the steamers BreakNater, Caty on
Lelyos and Rohoboth was S26O,01e.Jz
(which was a large part OF the COM
pany's profits on which the income
and excess profits tax was based
Tho book value OF the steamers GIf-
ford and Henlopen and The entire
plant was s2iO976N and the sale
pnce io Robert Pennington was s22l
OO0 Tho company on this deal had TO
nav income tax only on the difference
between the book value and the sala
price.
Cornelius G.. Marshall, OF Lewes. g
stockholdcr of the company tsiiiled
That he attended % Stockholders
meeting on August 10. 1917. when the
sale % Pennington was confirmed. ht
said at the meeting the sale OF inc
steamer lIcnlOpen 10 Mr.. Pennington
was reported and also the resale .bl
Mr. Pennington of the boat 10 the
NFronch Government for silJOOO
George p. Tunnel also testified ma
he heard at tht meeting OF August 10
1917. that Mr.. PEN .ng,on had bough
the Henlopcn and resod the boat iC
the French government for StI5 600
Mr. BoOkhammer was recalled tC
-ihe stand and testified that the morn
ing OF the stockholders me ling, Au
gust TO- was the FIRST he had heard Oi
The resale 10 the French Government
of The Henlopen and that his informa
ton came from Mr. Bayliss and MI
Thompson, two other directors. III
said such a sale was not discussed a
The directors meeting OF August =
Tho witness denied. as alleged In th'
-rcceivers' bin. that he as a director
had cOnnived with Messrs. Loflanl
and Lank in diverting from the Fish
.er'es Company large part OF Ia
. assets.
on cross-eXamination the witness
said he voted al The directors meet
ing 0f Angus 2 10 sell the steamer
clifford for not less Than 100000. Nj
Ridgely inquired Of the witness n h
for $4,000 and the company not gel
ting the money was diverting M
money. lie said he knew nOthin,
about the sale by Pennington OF tn
boat for si75 600 until the morning o
the stockholders meeting. but ad
emitted that he then went int
the meeting and voted for a resOlu
iinn 10 sell both the Henlopen an
Clifford and the entire plant 10 Pen