Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-30
MARYLAND NEWS !.
TO CANCEL DEBTS
win Drop Claims for Sums
Due From Montgomery
County on Contracts.
Special Dispatch to The star.

Special Dispatch to The Star.
ROCKVILLE, Md, July 30.-Agree-
ment of plaintiff and defendants In
injunction proceedings here against
Montgomery County commissioners and
treasurer were reached this afternoon
and the defense counsel stated that the
Maryland Publishing Co. would cancel
all debts owing on contracts awarded
by county commissioners while three Of
their members were stockholders in the
company.
The bill of complaint was filed In
Circuit Court here July z and alleged
that four of the commissioners were
stockholders of the Maryland Publish
ing Co. and that as a consequence it
was illegal for them to let contracts for
county advertising to the Maryland
News, bi-weekly newspaper printed by
the publishing company.
Cancellation of Stock.
This morning counsel for the Mary
land News, which was made a party
to the suit, and the county commits
sioners told Judge Robert B. Peter
that the commissioners who owned
stock had Cancelled their stock and
that all debts owing to the Maryland
News on contracts let by the commits
sioners had been Cancelled.
Judge Peter agreed to refuse pics
for an injunction provided that the
members incorporated in their formal
answer a statement that all debts ows
ing to the Maryland Publishing Co. by
the commissioners be Cancelled.
This statement was made orally o.
the court by P. H. Marshall, counsel
for the publishing company, after at
torneys for the plaintiff had argued
! that the written answer to the bill of
| H0YT1YlQi1f foilad IN infnrr1o he
on this point.
Legal Representation.
The county commissioners and county
| treasurer were represented by Capt,
Joseph G. Cissel. Walter w. Mobley, q
| tax payer of Derwood, Md, was repre-
sented by Miss Vivian Simpson, John
! E. Oxley and Harold C.. Smith.
| The answer admits that County Com
| missioner Benjamin c. Perry, Lacy
| Shaw and Clagett G. Hilton were direc-
tors and stockholders of the Maryland
| Publishing Co. at the time Injunction
| proceedings were filed and that Robert
L. Hickerson, another commissioner, was
a stakeholder. but not director.
| On July 16, the answer states, the
four commissioners returned their stock
to the publishing company without con-
sideration or promise Of future re-
Enumeration.
The allegation in the bill of complaint
that the award Of contracts for adver-
Using to the Maryland Publishing Co. is
without competitive bidding, is admitted
in the answer, with no explanation
other than the statement that the COM
missioners deny that their action in
this regard was in violation of any
statute.
Purchases Are Admitted.
The defendants admit that during the
past several years they have purchased
from the Maryland Publishing Co. guam
titles of blank forms and other neces-
sary papers for use of the administra-
ton of the county government, but deny
that all of the amounts shown in the
treasurer's report for the year 1929 al
paid to the company were contracted By
the county commissioners.
Job printing by the publishing com
pany has been discontinued, the answer
AYERS, and no bills are due the company
for such work or for county advertising
On Friday the commissioners will file
an amended answer to the effect that
the Maryland Publishing Co. has agreed
to cancel the debts.