The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1921-05-06
Suit Filed In Common Pleas
Court To Recover
$33,504.92
Plaintiff Asks To Recover
Excess Over Is Per Cent
For Selling Stock
Some Changes In The Offic-
ers OF Company Made
By Board
Statements Are Issued By Of
ficials AS A Result Of
The Suit

The Knox Tire & Rubber Co. is
plaintiff and B. e. Frantz, A. Scott
canneil, v. V. Hendershot and A. s.
HetzeIi are defendants In suit filed
In the Knox county common pleas
court Wednesday morning In which
the plaintiff asks for Judgment in
the sum Of $33,504.e2 and that the de-
PENDANTS be restrained from selling,
encumbering, voting or disposing Of in
any way, or exercising control over
said common stock now held In es.
crow by the commissioner Of securi-
ties Of the state of Ohio.
The suit is brought to recover the
excess over 15 per cent as allowed by
the commissioner of securities Of
Ohio as the maximum cost of selling
the stock. The plaintiff alleges this
excess amount has reached the sum
OF $33,5O4.92, for which amount the
plaintiff asks judgment.
Judge Frank o. Levering of Mt.
Vernon filed the suit for the plaintiff.
The petition of the plaintiff alleges
that on Aug. s, 1919, the commission
er Of securities of Ohio issued to the
plaintiff dealers license" to sell
100000 worth of stock; on March G,
1920, license was issued to sell
100000 worth of stock, and on Sept.
II, 1920,F license was issued to sell
an additional $1,OOO,O0O worth of
stock.
The plaintiff alleges that one of the
instructions of the commission was
that the sale of the preferred stock
was not to exceed Is per cent. The
petition states that the commissioner
further ordered that the defendant
pay to the plaintiff within ten days
from the date of the issuance of the
said license, certain indebtedness due
from them to the plaintiff 1t is al.
legged that the defendant failed to pay
or collect the indebtedness due the
plaintiff.
The petition further relates that
the defendants have misrepresented
and paid from the funds of the plain
tiff, to various persons as Qbmms
sions and expenses In the sale of pre-
: ferred stock, the sum OF S33,504.92 In
excess of the 10 per cent so fixed and
t. allowed by the commissioner of Sc
curities.
Further 1t Is alleged that wher
making application for the first deal
er's license, FrantZ, Cannell and Hen
: dershot deposited with the commits
sioner of securities of Ohio certain
+ common stock so held by them in thu
. company and the same to- be held b.
the commissioner In escrow as {
pledge that the conditions and re
, qulrements attached to the said deal
| ers license would be faithfully kept
I 1t Ii alleged that since the stock wa
, placed In escrow, the defendant
|. transferred to the defendant A.
o Hetzell $500 shares of common stocl
4 WHltH WaS III CSNioW WIN NuU ooA
a commissioner, and the said defend
ants now claim ownership OF the sal
/ common stock as follows: Frants
I 1880 shares, Hendershot 5000 shares
n Camel $3.50 shares, and Hetzell 355
q shares, all of which Is now In escro,
4 with the commissioner of securities.
/. The plaintiff further says that tn
r said stock Is all of the visible asset
d OF which the defendants are owners
n and II the said defendants be permi
}. ted to sell or dispose of the said con
Y mon stock, that the plaintiff woul
have no recourse or other remedy
collect the amounts due and owing
from the defendants
The plaintiff therefore asks for
temporary injunction and, upon flint
hearing. asks that the injunction b
j made permanent. The plaintiff ais
asks for Judgment In the sum {
S33,5O4,92
Is A temporary injunction was granite
,r Wednesday by Judge Blair In commo
pleas court.
le Well informed persons for son
Df days have been anticipating some a
O. tion such AS that indicated In Il
70 above proceedings. There have bee
De whisperings and intimations that o
s- was not we'll and that there was
vision and lack of harmony within Il