The independent. [volume] (Elizabeth City, N.C.) 1908-1936, 1923-03-30
HARTFORD'S GRIP ON
THE DIXIE TIGHTENS
Postponement of Court Hearing in Dixie Gives
Foreign Company Chance to Scramble
The Eggs For North Carolinians.

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scheduled for last Saturday in
the Federal Court in Green's
boro, has been postponed until
April "a upon order of Federal
Judge Boyd. Judge Boyd also
continues the order restraining
che majority stockholders
from proceeding with a meet
ing or in anyway interfering
with the recent sale of the
Dixie to the Hartford Insur-
ance Co. of Connecticut, ;,
The temporary effect of this post
ponement is to give the Hartford an
other thirty days in which to enjoy
undisturbed all the privileges recent
ly conveyed to it by the officers of
the Dixie against the protest Of the
majority stockholders.
G. o. Robinson, l.. G.. Blades and
DIR. L. s. Blades, of Elizabeth City;
W. B. Blades and j. Vernon Blades.
of New Bern; and Alex Hanes, of
Winston-Salem are the defendants in
the court action, they controlling the
majority stock of the Dixie. The
action alleges that these defendants
have conspired thru an illegal voting
pool to cause the Dixie to 'breach and
abandon highly profitable contract
with the Hartford Fire Insurance
Co." When the defendants 60 into
Court they propose to show that if
any conspiracy exists, the conspira-
tors are the officers of the company
who have made ruinous contract
with the Hartford.
The contract made with the Hart
ford by the Dixie explicitly sets forth
that "The Dixie Company hereby
sells. assigns and transfers to the
Hartford Company all its good will
and interest of every kind i'm the in
suranc6 business hereby reinsurcd.
The said Dixie Company also assigns
and transfers to the Hartford Com
pany all its books of records and also
all of its supplies of every description.
both in hands of agents and ut the
office such as are customariiy used
and known as office supplies" The
contents of the contract are no longer
secret. the contract nbw being mat.
tet of court record.
The Dixie Company is required by
the contract to continue its corporate
identity for a period of five years or
longer and maintain its present capi.
tai stock of SaOO.OOO without diminu-
ton. The Dixie pays the Hartford
something like 100000 for taking
over its business and agrees to Pay
back to the Hartford something like
SJ00.000 il it should desire to buy
back its good will at the end Of the
five years period. Majority stock
holders of the Dixie think the con-
tract was either mistake or a
swindle. 1t is pointed out that the
contract itself stipulates that the con-
tract shall be interpreted as 'an
honorable engagement and not mere
ly rs legal obligation"
The men who made the contract
with the Hartford, namely ii. IL.
Bush, A. l.. Brooks and ]. l.. Latham
were salaricd officers of the Dixie
who control only 1,500 shares of the
10000 outstanding shares Of the COM
pany. But II. X. Bush. president of
the company gets five year contract
with the Hartford which is believed
may ultimately be worth $4,000 10
$4,000 year to. Mr.. Bush, with
probable handsome increases to the
others.
Objection of the Robinson and
Blades interests to any such contract
with the Hartford is the cause Of all
the subsequent row. To forestall
such contract and save the Dixie
for North Carolinians, {. o. Robin
son and his associates recently ac-
quired up to IL per cent of the stock
of the company. They already owned
43 per cent of the stock. 1t is TO
keep the majority stockholders from
controlling the affairs Of the company
that the Greensboro crowd has gone
to the Federal Court. c. D. Robin
son of Elizabeth City, who says he
is advised by his attorneys to make
no statements for publication does
say that he is confident that the court
action will determine the right of the
stockholders of company to save
that company from dissolution and
disaster.
1t is believed that the contract with
the Hartford was made by the
Greensboro men in the fear of losing
their jobs. James X. Young, former
Insurance Commissioner Of North
Carolina, has been mentioned for the
Dixies president. But under the
contract with the Hartford. the
Dixie stockholders have no voice ia
the election of their officers.
II. X. Bush, for many years presi.
dent of the Dixie is a highly rated