Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-11-30
PREFERRED-sTOCk men
WIN PIERCE OIL LITIGATION
Judge Moncure Holds Holders
of Common Stock Lost
All Rights.
HEAR CASE IN CHANcEnr COUNT
Failure to Pay Dividends n. Required
by Inv Resulted In Change in vOt-
Ing Power-Cnre Probably VIII
60 To supreme Court.

Pending further consideration. fol-
rowing argument by counsel for both
sides in the Pierce OH Corporation
litigation In the Chanccry Court
Judge w. IL. Moncurc yesterday sf-
tcrnoon at o'clock annouced that
he would at $50 O'Clock tomorrow
morinE hear additional motions, and
probably ut that hour announce his
decision AZ 10 an extension Of the
period tentatively fixed for Il meet
Ing OF the preferred stockholders, as
OF December 27.
At noon yesterday. az heretofore
announced. Judge Moncure handed
down an opinion sustaining the con-
tention OF the preferred stockholders
mat the directors elected by tho
common stockholders. who had at
tempted to conduct the business OF
the corporation, were Illegally In
stalled. and that the election OF
such directors on October 2 1922
must he set aside and declared null
ana VOID. Being In default in nav
ing iour quarterly dividends on tho
preferred stock. and no lawful rem
son being shown 20 the contrary
inc preferred Stockholders now have
'he riSht To meet and elect "A board
Oh directors. The restraining order
awarded In this matter on Noy.mbcr
must he dissolved"
Demarn for StockhIIdcr..
Upon this opinion Henry w. An
d"rson. for III. common s,ockbnlaa,.
demurrcd He asked m. co,,,, .,
extend the time fxcd for III. np.r,
''"h or the order. and crlticized tho
decision AT som. length Henry {.
hhey and John $. EgYl-ston refused
IN" statements Of Mr.. Anderson. aud
pointed out that a further .xt.pslnn
would practically nulllfy tn. de-.
''N'oh OF the court. and that lin iha,
event Utigants would have li,,Io
caus" for bringing cases In con-, y.
Judge Moncure patiently h.ard,bo
lawyers, aud stated that h. would
give counsel further hearing at ga
CLOCK tomorrow morning
IN MS opinion. Judge Moncur.. re.
hearheh the Incidents that led IN ia
'hc litigation as revealed 10 him -,
,ne evidence adduced by numerous
lie thought that the i'm
portance OF the case had h..n pre.,
~ magniiied. because OF m. fac, -,
'he respondent corporation has ~,
STANDING stock of the mar vain. ~,
man? millions Of dollars. and ina,
there nave appeared here, either
counsel or witnesses. persons ar ma.
''ohai reputation as lawyers or hank
~ ana the further fact that III.
'""'essioh and avoidance offered n,
unique. ""'
After critically reviewing IN. .,.t
"ehcc, Judge Moncurc in hsi lenp,b,
"rhcr' says: 1t was ncdeIcss 10 IN
NcStiEat" further back than was done
pechus". In my Judgment, there bas
not bcen shown In this invcs,iuatIo,
' oi conspiracy on tho part Of
any OF the petitioners; and NAV add
proved"
Chartered Under virginia I.nv..
The Pierce oil Coruorn,jon W..
chartered In 1913 under the lnws ~,
NHSinia- with it's principal Office l.,
richmond. LIS assets ar. outside or
virginia. its chief business ana ox
ecutive Offices being in New York A,
p'Sc"t IL mas outstanding $4,000 900
OF preferred stock and some $4,000
oop or $4,000, 600 Of common s,nct.
par value. The preferred stock is
per cent cumulative. and preferred
poth as To dividends and assets rbo
oiVidends on this stock are pav,bIo
quarterly. the first on January
Cnder the charter. IL the comn,py
rams TO pay such dividends for four
consecutive periods, the common
STOCK shall have n ovoting powcr In
'''ct'oh OF directors, and tho on
e Young power in the election of
-, snail be vested exclusively
In the preferred stock.
IL was shown 10 the satisf,c,io,
OF Judge Moncure that the dividends
nad not hene paid. and that no fraud
ras heen proved TO prevent such paw
ment. i"'
IhRt the case will go to the Sin.
preme Court Is generally conceded
run transcripts of the evidnece were
taken by both sides.