The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-01-07
LEROY SPRINGS
MAKES CHARGES
AGAINST JONES
Sensational Develop
ments in Receiver
h ip Proceedings
Against Lancaster
Mercantile Co.

tile cOmpany-Cn3fleS -. IoiieH a.
fair was written here this afternoon
when attorneys representing the
Jones interests in the action agreed
to the appointment Of a receiver
for the Lancaster Mercantile COM
panv and Judge Ernest Moore, VINO
was presiding. asked that names or
distinterested men be submitted to
him so that a selection could be
made. These names viii be sub
mitted 10 Judge Moore next Fri
day at o'clock at which time it
IS likely that a receiver will be ap-
pointed.
The action today. looking to the
appointments of q receiver for the
company. whose capital stock OF
| s1O0. 900, comes as elimination
10 a series Of actions in which nu-
| merous charges havet been made
and to one physical encounter
which took place in the Offices OF
the Lancaster Mercantile company.
The various actions taken by
men who stand high in the business
and social life Of the community
lin which they live and in the state
have attracted much attention and
| the proceedings in the court room
today, even though consisting. large
ly of legal sparring and the citing
of legal authorities on various
points, were followed by 4 crowd
which practically filed the room.
The stock Of the Lancaster Mer-
camille company is owned by Leroy
Springs, J.. T. Stevens and CD.
Jones, with $50 shares in dispute.
The controlling interest in the COM
pany is owned by Springs ard
Stevens. The Catawba Fertilizer
company. in which j. T. Stevens
/ and Leroy Springs are said TO be
| interested, recently moved that q
receiver be appointed for the Lan-
caster Mercantile company, c. d;
| Jones, through his attorneys. inter-
vencd, and gave notice that mo-
ton would be made for an order
granting leave to Mr.. Jones to have
the books and records of the Lam
caster Mercantile company audit
ed, holding that some of The notes
! constituting a part Of the indebted
ness OF the mercantile company
had been endorsed by Springs.
Stevens and Jones and that for that
reason they should be made par
ties 10 the proceedings. and also
holding that when he, Mr.. Jones.
| made an effort TO examine the
books OF the mercantile company
he was expelled BY force from the
office Of the company.
Attorneys for Jones, in arguing
that Jones, as a stockholder in the
mercantile company, should be
made party to the suit, heId
| tina, his interests were in jeopardy.
IL waS argued that 4 few months
ago the stock Of the mercantile
company was far above par IN
value. and that the company was
not now insolvent unless made so
deliberately through collusion ana
fraud. 1t was further argued that
the other stockholders in the mer-
camille company were so hostile to
Jones that they would not protect
! his interests 1t was argued that
Jones wanted TO intervene and to
ask for the appointment OF re-
ceiver for his own protection. hold
( ing that he was not represented.
as the governing body Of the lner-
camille company was hostile to
him.
Attorneys for the Springs-Stev-
ems interests held that no grounds
| for the charge Of fraud had been
alleged and that the receiver. as q
part Of the court. would give Mr..
Jones protection. 1t was held that
the notes on which charges OF
fraud might he made were made
before Mr.. Jones retired from the
presidency Of the mercantile COM
panv. Numerous authorities were
cited by the attorneys TO strength
en- the various points raised. and
the Judge announced that he would
| take the matter OF Intervention UNI
der adviSement and render de-
cision later.
After the intervention motion
J had been disposed of, the matter OF
the appointment OF receiver was
taken up. The attorneys for Nh
Jones withdrew objections to the
appointment. holding that they do
sired 4 receiver appointed. not.
they said, because OF the inSol-
vency of the mercantile company
but because Of the antagonism OF
the controlling body. In this con-
read by attorneys OF both parties.
Jones presented attidavits from
Todd X Mccullough. public ac-
countants. in which they said thar
on December ,! they had gone TO
the offices OF the mercantile coHi-
pany to make an audit OF the
books for MI Jones. and that they
were invited into 4 side room
which contained no books. Mr.
Jones demanded the hooks AMI
was told. according 10 the attid"
Vit, that the books would be tur-
nished him as be called for them.
! Mr. Jones. according to the afii-
davit, started 20 the ohice where
| the records of the corporation were
kept and the physical encounter
occurred G. ID. Jones submitted
Il somewhat similar affidavit in
| which he told OF the visit IO the