Evening journal., 1922-04-13
SAY AUDITORS
Cannot READ
Serious Allegations Made
Against Directors of
Development Corp.
RECEIVER is
BEING SOUGHT

and Martin Tomcyzk. John S. Bo-
gucko, Bronislaw Lewandowski.
John B. Pletszuski, Roman smolk
and Peter Cieniewicz. directors OF
the corporation. Chancellor Wolcott
has Issued a rule. returnablo Friday,
April 21, TO show cause why. pend
ing final hearing OF the cause. re-
ceiver or receivers should not be ap-
pointed. why a preliminary injunc-
ton should not be Issued restraining
the defendant corporation, It's direc-
tors, officers. agents attorneys and
employees from conducting It's busi-
ness. collecting money due, etc. and
why the directors should not be re-
strained from voting or attempting
to vote or from assigning, transfer
ring. pledging or in any other man
ner encumbering or disposing OF the
shares OF the common stock OF the
corporation now owned and held by
them or so much thereof as may
appear by them to have been illegal
. ly acquired.
The Chancellor further iirected
that the complainant file afhdavits
, in support OF the rule by April ls,
that the affidavits on behalf OF the
r defendants be filed by April 20. and
that afldavits on behalf OF the com-
plainant in reply. be filed at the re-
turn OF the rule.
In the Bill OF complaint. Kowelsk
2 states that he is the owner OF thirty
r shares OF common stock OF the cor
poration; that the corporation was
D Incorporated under the laws OF
Delaware. in 1914, with a capita
/ stock OF 500, 900: that the corpora
- ton operates the Polonia moving
picture theatre. located In Mary
o. land avenue. the Polonia Weekly
o newspaper published In the Polisf
r language. and Polonia Hail. ane
that Il has other real and persona
Z property exceeding 100000.
e The bill alleges that the corpora
4 tlon gave promissory notes 10
n sac 600 which was solicited through
s advertisements in the Polonl'
j. weekly and that the money was no
invested but was used as worpni
e capital. 80 that It could be reao
u ily converted into cash In oroer
u meet the notes. The corporati'H 'H
n the bill alleges. Is without liquid as
Ie sets with which TO satisfy demand
,t on the notes should they be mad.
p some OF the notes have been palo
n the complainant sets forth, out pal
,r ment OF others has been refused 70
the reason that the corporation ha
"A practically no cash OF other lqui
ai assets. The bill states that ther
are outstanding notes payable OF IN
corporation in the amount OF wa
2s5.s1. all OF which. excepting Nv
notes aggregating 5000, are ei'h'
demand notes or are now due an
Of payable.
u II is averred that the course pu
y sued by the directors constitutes
fraud upon the public and HI
a. worked great injustice 20 holders
bv unpaid notes. has brought the co
re poratlon into disrepute and serious
Injured its credit among residen
80 OF wilmington OF Polish birth or e.
n, traction, who form the great mato
h. ity OF its customers and from who
}, its Goodwill has been wholly d
m rived, and that II has brought aboi
,o n condition amounting 10 insolven'
Ia OF the corporation
no The bill alleges Il was disclose
as that about June 90, 1921, that q
treasurer. John S. Bogucki. WI
o. short s2312.51 and that the directo
s. accepted a promissory note unei
a dorsed and without security fro
he him for the amount and that Il
AL note has never been paid. Abor
or December 81, 1921, the bill alleg'
~ II was disclosed that John
n, Pietuszka, secretary Of the con
q, pany and therefore manager OF Il
80 Polonia weekly. was short S475.7
~ that the directors accepted a promi
a sorry note unendorsed and witho
% security from him for the amou
,tv and that the note has never be-
b paid. The bill also alleges that {
a. audit OF February 2S. last, reveal
e. that Bogucki was further she
sums OF s2O29.01. $3.50 and $40
the latter a United States bond. IT
T. directors, the bill asserts. never r
moved either OF the officers from G
fee.
Il Is maintained by the complai
r.. ant that. 10 keep knowledge OF Z
p" affairs OF the corporation from 9th
~, ~ stockholders. shortly after organic
-, ton two OF the directors. Smoll
, and Cieniewicz, were appointed
- an auditing committee. The b
- charges that the former cam
an write and can read only to a limit
ses extent and that the latter cl
.ss neither read nor write.
ss- The corporation. II IS charged,
M and has been unable 10 meet It's Gu
rent obligations as they come due
he II Is alleged In the bill that the
Iio. IS grave danger that unless a T
dy ceiver IS appointed TO take char
sct and preserve the assets OF the &C
lis poration, further funds will
ire drawn from the treasury by way
he dividends or stock OF directc
fraudulently issued and that the ,
his rectors will continue TO mismana
IRE and permit other Withdrawals
N funds. and that II IS highly probal
sit that creditors will institute suits I
the recovery OF current liabilities
'r- the corporation.
"n It is stated that the complains
hu has not adequate remedy at law.
ne The officers OF the corporation Z
'ei Bronislaw Lewandowski, presidei
Martin Tomczyk, vice-preside
John B. Pietuszka, secretary. a
John S. Bogucki. treasurer.
ers Clarence A. Switzerland rep
an sents the complainant.
G. CHECK UP CITY BONDS
in The City Sinking Fund Comm
ad- -. tofa a ,,,aotfro- last nfohf ID, I