Jasper County Democrat, Volume 19, Number 103, Rensselaer, Jasper County, 24 March 1917 — STOCKHOLDERS RATIFY ACTION [ARTICLE]

STOCKHOLDERS RATIFY ACTION

Of Board of Directors in Purchasing Harrington Elevator. At a special meeting of the stockholders of the Farmers’ Grain company held at the court house Tuesday afternoon the action of the board of directors in purchasing the Harrington Bros, elevator for $11,599 was ratified. The vote was 149 to 0. Two stockholders did not vote. The board of directors is composed of seven, members, five of whom voted to make the purchase, namely, H. W. Jackson, Frank Hoover, - Sherman Thornton, C. F. Stackhouse and Fred Waymire. J. W. Stockton and Michael Kanne, the other two directors, opposed the purchase. The latter was of the opinion that if they waited a while longer the property could be bought for less money, and Mr. Stockton contended that it to’ok the unanimous consent of the board to close a deal. At the meeting Tuesday afternoon the question was raised as to whether or not the meeting was legal, only seven days’ notice having been given when the by-laws required ten. This matter was referred to J. J. Hunt, and as there were about 100 stockholders present he advised that because of this large representation they proceed to ascertain the concensus of opinion. The stockholders voted unanimously to waive any technicality as to the legality of the call for the meeting. They also voted that four directors, a majority of the board, were all that were needed to enter into a contract in the name of the company. C. W. Postill, secretary of the company, explained that the board of directors had proceeded on the assumption that a majority could transact business and that the elevator had been purchased and then belonged ,tp them; and that SI,OOO of the stockholders’ money had been paid on the same. Mr. Kanne asked permission to state his position, and said that while he had been in favor of purchasing the elevator he believed that if they had waited a while the same could have been secured for $2,000 less money. Mrs. Ed. Kanne read a prepared paper setting forth the views of Mr. Kanne and Mr. Stockton. In this paper it was intimated to an extent that Frank Hoover had stepped beyond the bounds of his authority in seeking to close this deal. Mr. Hoover was one of a committee of three appointed at a previous meeting to negotiate a deal for the elevator at the price of $12,000. During these negotiations he succeeded in getting the price down to $11,500 and explained his whole activities to the complete satisfaction of the stockholders. A motion was then made that the stockholders ratify the action of the directors in purchasing the elevator. In the vote that followed 149 shares of stock voted for the measure and none against. There were something over 150 shares of stock represented, but Mr. Stockton and Mr. Kanne did not vote. The property purchased is to be taken over May 1, and the next question confronting the company Is the selection of a manager. The success of the enterprise depends largely upon this feature of the business. And it is probable that H. E. Hartley, who has managed the business for Harrington Bros, since their purchase of the elevator and who has been in the grain business all of his life, will be retained.