Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1925-11-10
JUDGE nixon
RECEIVERS PART
OF HIS BONDS
Bib County Superior Court
Judge Awards a Decision to
Americas Mar

Judge j. a. hlAOn prominent local
attorney was given the decision in
his SUIT against DR.. A. B. Hinkle of
Macon for the recovery of $4,000
IN Liberty bonds obtained by Hlnkle
through fraudulent sale of stock an
a tractor company.
The jury returned verdict order
ing the return of $4,000 OF this
amount In bonds back to Judge Xix
on, with interest which amounted TO
almost $4,000.
In a statement to a representative
of the Times-Recorder today, Judge
Hixon made the following state
ment.:
The President and Stock Statesmen
of the Mobile Tractor company from
the first of June to about the first of
september, 1920 made repeated eff
| forts to sell me stock in the company
i begged and asked them ID discon-
tlnue their efforts about Septem-
Der LIST.
After this they begged for anoth-
er conference in which they solicit
ed an individual loan of $4,000
from me secured by $3O,0OO.OO
worth of their individual stock as
collateral, with an option to purchase
1t after twelve months for the $751;
10000 obligation, and with the
further right to audit the company TO
to see if promoting charges had been
reasonable; and further to check the
cost of production to see if they
could sell the tractors at Ahe price
claimed they could, and make the
profit they claimed they could; after
which was to exercise my option to
buy the stock.
Unknown to me, during the whole
time, they were trying to sell me
stock that DR.. A. B. Hinkle of Ma
con, Ga, had purchased under
fraudulent contract. He had con-
spired with Frank j. Ryan,
| President, and Arthur l.. Herbert,
Secretary of the firm whereby he I'M
dertook in writing to purchase of the
company all the remaining unsub-
scribed stock at $4,000 per share,
when the selling price was $4,000
The trade was to be kept a secret
between them; Hinkle paying part
cash and the balance to be paid on
credit; they agreeing in writing for
their services and Hinkle then get
ting profit of $500 over and
above the selling price at the time.
This was monumental fraud on all
the stockholders of the comany.
This was unknown to me until aft
er the loan transaction. ! made the
loan in good faith and they delivered
me stock, representing that it was
their stock. 1t afterwards develop
ed that it was this fraudulent stock
of Hinkle's that was delivered to me,
and as soon as / discovered this,
rerudiated the sale ond brought suit
against Hinkle for the bonds.
1t developed that the fruits Of the
fraudulent scheme had been divided
and the Mobile Tractor company had
! kept 100000 of the bonds; claim
ed HinlIe responsible for the fraud
ulent acts and representations of
me agents. which the Court held
We're true, by reason of which title
10 none of the bonds passed out of
Imy name.
was unable to show that Ryan
and Herbert under Hinkles direc-
tions had exceeded their authority as
agents under the fraudulent stock
purchase contract, but claimed
had right to recover on the bonds
rom Hinkle, because Hinkle actual
! ly received $4,000 of them and
could not repudiate the fraudulent
contract in part and ratify in part
if he ratified at all by accepting any
of the proceeds he was bound for the
whole SIS, 100000, This the Court
refused to agree with me on and l
only recovered the 100000 with
| interest, amounting to about $13,-
/ 10000
/ This case has been in the courts
for four years and the many friends
of the popular Sumter man are con-
graduating him on his victory.