Piedmont Press Ass'n v. Record Pub. Co.

152 S.E. 721, 156 S.C. 43, 1930 S.C. LEXIS 87
CourtSupreme Court of South Carolina
DecidedMarch 26, 1930
Docket12869
StatusPublished
Cited by8 cases

This text of 152 S.E. 721 (Piedmont Press Ass'n v. Record Pub. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Piedmont Press Ass'n v. Record Pub. Co., 152 S.E. 721, 156 S.C. 43, 1930 S.C. LEXIS 87 (S.C. 1930).

Opinion

The opinion of the Court was delivered by

Mr. Justice Cothran.

This is an action solely for injunction in the original jurisdiction of this Court commenced February 17, 1930.

At the time of the commencement of the action, the plaintiff obtained from three of the justices of this Court an order requiring the defendants to show cause before this Court at 10 a. m., or as soon thereafter as counsel can be heard, on Monday, the 10th day of March, 1930, why the prayer *46 of the plaintiff should not be granted and why the said defendants, their agents and servants and all persons acting under or on their behalf, should not, pending this action, be restrained and enjoined from trespassing or entering upon the premises occupied by the plaintiff at the Record publishing building in Columbia, S. C.; from interfering or intermeddling with said plant and the publication of the Columbia Record and Sunday Record; from intermeddling with any other properties covered by the lease referred to in the complaint; from interfering with any of the officers, agents, or employees thereof; from intermeddling or interfering with any other business of the plaintiff; and from attempting to interfere with or dissuade any of the debtors of the said company from promptly paying to the said company any amounts due by them to the said company incident to the operation of the business of the plaintiff. The order also contained a temporary restraining provision, in the meantime.

At the appointed time the matter came on for hearing.

The defendants submitted a motion to dismiss the complaint upon various grounds stated, and at the same time, reserving the right without prejudice to insist thereupon, submitted their joint answer to the complaint, supported by sundry affidavits and exhibits.

The apparent controversy, as will appear, is between the plaintiff, Piedmont Press Association, claimed to be a corporation of South Carolina and a lessee of the defendant Record Publishing Company, and the last-named company, likewise a South Carolina corporation, in reference to the possession of' the property of the Record Publishing Company and the operation of the newspaper business heretofore conducted by it. The plaintiff claims to be in possession under a valid lease, and that the defendants are interfering and threatening to further interfere with its possession and operation. The defendants deny the validity of the alleged lease and insist that they are entitled to such possession and operation under the circumstances which will be hereinafter detailed.

*47 The real controversy, as we shall endeavor to show, is between William LaVarre and Harold Hall, individuals once engaged, under friendly relations, in a joint enterprise of acquiring the capital stock of the Record Publishing Company for the purpose of conducting the operation of publishing that newspaper, but now embroiled in bitter and apparently irreconcilable conflict.

The facts, as we find them from the mass of pleadings, affidavits, exhibits, and records, are those (adopting as we feel obligated to do, and independently are so inclined, the findings of fact of the Georgia Federal Court, as will be explained later) :

In the latter part of the year 1928, William LaVarre and Harold Hall made an arrangement with the International Paper Company, by which that company agreed to and did advance to them approximately $900,000, for the purchase of the capital stock of three newspaper corporations, the Augusta Chronicle of Augusta, Ga., the Spartanburg Herald-Journal Company of Spartanburg, S. C., and the Record Publishing Company of Columbia, S. C., and to liquidate the outstanding bonded indebtedness of said corporations respectively.

As per agreement, LaVarre and Hall executed notes to said corporation representing the advance and agreed to pledge the acquired stock as collateral thereto.

It seems that the advance was made before the stock was acquired; it does not appear that it has ever been actually hypothecated as agreed.

The proceeds of the loan, in large measure, were used in the purchase of the stock which appears to have been issued in the name of LaVarre alone. The defendants allege that of the said proceeds LaVarre retained and deposited to his own credit in certain banks $122,000 which should have been applied to the outstanding bonded debts of the several corporations, and later used a considerable amount of said funds.

*48 After the consummation of the purchase of the stock of the Record Publishing Company, the former directors and officers of that corporation resigned, on March IS, 1929, at a meeting of the board of directors composed of Wright, Tobias, Taylor, and Marshall. (Why this meeting was that of the old board of directors, and not of the then existing stockholders, does not appear.) At that meeting of the board of directors, LaVarre, Hall, and McMaster were elected directors; and that at a continuation of the meeting the following officers were elected: LaVarre, president, Hall, vice-president, LaVarre, treasurer, and McMaster, secretary; and additional officers, Marshall, assistant treasurer, Taylor, assistant secretary.

The corporation, the Record Publishing Company, continued in the possession of the newspaper property and the conduct of its operations.

On April 4, 1929, in accordance with the Act of Congress a statement of the ownership, etc., of the Record was transmitted to the United States Post Office Department and was published in the Record; it declared, under the affidavit of both LaVarre and Hall, that at that time the paper was being published by the Record Publishing Company; the names of the editor, managing editor, and business manager; “that the owner is the Record Publishing Company all of the capital stock of which is owned by William LaVarre and Harold LI all’3; and the names of bondholders, mortgagees, and other security holders.

On May 23, 1929, LaVarre with certain other corporators filed a petition for a charter to be issued in the name of the Piedmont Press Association by the secretary of state, and the same was issued upon that date; with a somewhat euphemistic introduction • the general purposes of the corporation were declared to be “to establish a system and organization for the gathering and distribution of news, information, statistics and literary features relating to matters of national and local interest; to create, sell and place advertising; to own and operate or invest in newspapers, mag *49 azines and other periodicals; to do a general printing and publishing business; and to do any and all other things necessary and incident to and in furtherance of the purposes aforesaid.” The capital.stock was placed at 1,000 shares, of no par value. The directors named were Hearon, McMaster, Hamilton, and LaVarre, “although the last, not least”; the officers, LaVarre, president, Hearon, vice-president, McMaster, vice-president and secretary, Hamilton, treasurer.

The entire proposed stock was subscribed for by LaVarre, and “qualifying certificates” were issued to Hearon, McMaster, and Plamilton, 2 shares each, and 994 shares to LaVarre.

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Bluebook (online)
152 S.E. 721, 156 S.C. 43, 1930 S.C. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/piedmont-press-assn-v-record-pub-co-sc-1930.