New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-06-03
END OF THE ORYOLITE SUIT
n1sAcRFEMENT OF THE JURY.


~ .sAss - FALSE REPRESENTATIONS AL
,vcrD AND pENIED-TnE TEsTIMoNY-IHE ii'Oh
prAsoSs WHY THE SUIT WAS BEGUN,
Tn the berkshire County Court at rlttsneiu'
-. wss berun on Tuesday, May o. the SUIT OF an.
-. r servn for himself and Mr.. Averill represea,le
~ Ienox Plate Glass Company, TO recover SoVVoOO
80, William E. Dodge OF this city, for alleged r"uuu
lent representations about the use OF cryoh'e III '"'
yfacture Of plate glass and other articles ~. ,rr.
On Saturday Judge Ames charged 'no 40.
,vbo after being out for five hours "o
clared that they could not agree s"'"U 4 ~
90 The case has excited much in'eI0''
cha defendant appeared Senator OS"oS' - 90
roursel the Hon. Galusha A. Grow anu 'oi,'' a,,
sDr,,~So,h,a and Pingrio and Barker OF FN'sneiu,
fhhaooipni@, n,aintlfs stearns and Knowlton OF
,ao,d Mass and MI. Waterman OF flttsheiu'
r. ,rv was composed largely Of farm laDorers VINO
aensd much befogged by the technical details III ehe-
ss,rv and the financial explanations OF several witnesses
The history OF the given by the plaintins' III
o,af is as follows: The Lenox Plate Glass Company
49, Doannfactured heavy glass for roofing, and the
rstal Glass Company which made window glass, were
sanzed in 1865 and 1862 Both companies. the plain
tids claim we're profitable and held property worth
100000 In 1869 william L. Dodge OF this city, who'
,rlthhis son General G. C. Dodge had the controing
interest in the American Hot Cast Porcelain
Somnaov Of Philadelphia. met Mr.. servin, agent
y, the plaintiffs in this city, and proposed
n consolidation OF his company with tne LenoA
Companies. The Philadelphia company was MANN trnm
cryote9a newly-diseOyered substance Canned -, 10
be cheaper t1SD that profit Of co per cent
was made with only two furnaces Inc result wa" ,h
IN 1870 the Lenox OomPanes for me ma2ufacture
of articles from the cryonte. from 'he sSipned
factory sso W 6pantty of cryoite and machinery
The compaint alleges that the experiments Win elyo-
S m lie for times its actual value and failure soon
resulted The plaintiffs alleged that the dd na tat
money had been lost from the start, ana that s %o
@ ana had made money out of the consolidation
denial Of any attempt at fraud was made Dy tne ue
P5Isdepbia Corporation but as stocEhOlder. not
ocer lie declared that he never made any OF the rep
RESERVATIONS about the business that were alleged nor
said that the manufacture Of cryote would bring them
in large profit he was anxious to Lave the cIyolte
cryohte for slabs and table tops, which would de-
IDand much extra expense II done az M
lie paid assessments amounting 10 SoOOOO on eonoo1
that cash capital of $S00OO0 be paid in, and he proved
TO be the only one who paid ms amount was USED not
10 carry the business but to qudate old debts Of the
Ienox companies. Hence the plaintiffs were the gamers,
while be was the loser by the transaction
TESTIMONY ON BOTH SIDES.
Andrew T. servin, one of the plaintiffs testified that
be had known nothing Of the cryote from his OBJ
seryaton aud bad advised his company TO use 1t on
the representations Of Mr.. Dodge. When eross-ex-
amined he was forced TO admit that eryoie was not
unknown to the plate glass company before 1862 but
manufactured eryolite in the LenoX furnaces. .,S
Several other witnesses were called Tor the plalnlHs
most OF them wOrkmen In the lenox company Out the
evidence unimpOrtant 49,. -,
Thirteen witnesses were called 1or tne oeIenee Jenh
Macarthur director in the Hot Cast company, resumed
mat large profits would have been made had
NOT excessive salaries been paid large commissions
on sales allowed, and much money spent IN experiment.
Dr. Trenbold corrOboTated the testimony IN regardO
ontlay several witnesses testified that cryOtes was
manufactured probably in various forms.
WaldrOn ]. Cheney inventor OF the eryolte process
testified that in the Winter OF lS6S69 he had some ne
eotistioDs with Mr. Servn about experiments with cry
6hte at Lenox. A lot OF mixed cTyolte was sent to
annealng the plates He could not remember having
heard Mr. Dodge or his son mentioned by Mr. servn In
connecti N with the negotiations.
Gausha A. Grow testified ia regard to his acceptance
Of the P0Na Of M the Contract 3as % te
Lenox Company IN this way Inc Lenox Company was
the new company assuming any Of the debts of the
Old one. The Porcelain Company was TO furnish 1000
tons of ehryOe and license for the manufacture Of
All articles except table ware. Mr. Servin stipulated
fbat Dodge was to pay $4,000 which he did but he
was by the witness IN servns presence that he
100000 subscription was raised
William T. Dodge was called 70 the stand on May
90 and made sweeping denial OF all the allegations
OF the complaint He added that he had never used
dollar OF the Lenox pr0pcry tor ms own purposes
aud that he had no intention Of cheating or delraud
and mad made no false d ABOUT the e1n
was settled in December 1870, he expressed his CON
$4,000 il a new company was formed at Lenox. This
be led to do BY the statement that
with eood prospects. In 1871 he went to Europe,
and IL was only on his return in February, 1872
involved General Q. c. Dodge substantially oOrIObO-
rated the statements Of his father and declared that he
sSon tSe Condition Of the porcelain Company Ha
SON Garfield EIlzur Smith and some other dents Of
practically bankrupt prior consolidation, and that
the property was not worth the amount claimed.
HOW TRE SUIT HAPPENED TO BE BROUGHT.
A gentleman, familiar with all the facts in the case
gives the following information concerriDgit:
The Porcelain Company had agreed with the Pennsyl
yania Salt Company for $500 OF cyOte yearly for
which 100000 to be paid It found that too
much spent the goods manufactured and too
little material used. Hence the plan to transfer the
the LenOx Company, whose large amounts OF
ote could be used and cast at small expense The plan Of
the Porcelain Company had been to make the Philade
phia works merely means for the Introduction of
cryollte 10 induce other companies TO take IT. Where
$50 was expended for real manufacturing $500 was
spent in experiments TO perfect eryOe. In this way
large sum spent The character o. the enterprise is
shown by the fact that such mon as Dr. Sparks John
Macarthur Dr. Provost and Mr. TrOtter, all of Philadel
pha, were among TIE orgaazos Inc SIiangeneh was
cryolite as any one eOnnecEed with the business
since for eighteen months he had large quantities OF
company, which should own fye-sevenths OF the new
stock. 1t was proposed for Il to take $4,000 in
using eryolite enjoyed by the Pladelphia firm were.
transferred to the Lenox Company Gansha A. Grow,
stupidity. the words as 10 the new coimIanys
eeng ree IRON tbav anSeaTed in All y The "a" 9rsf
Fhe Philadelphia company turned over the $4,000
over proDerfy which, az its highest valuation was not
equal to the debts. which amounted 70 %3ZOOOO After
the contract, the LenOx Company did not use twenty
tons OF cryote. They took all the Philadelphia prop
erty $4,000 in cash paid by william L. Dodge, and
about 100000 received from other subscribers. With
this money they nearly cleared their establishment OF
debt Then instead OF using any amount OF ery0lite,
they found themselves unable 10 stagger along, and
failed
ct Philadelphia company had no representative
there. Mr.. Mason occupied an unimpOrtant position.
Finally Mr. Seryn bought in ali the property, which he
claims worth 5000 900, for $4,000. Then TO screen
himself from the criticism or other Stockholders, he
went TO smart lawyers, who do q good deal OF
business on tue percentage system, and brought this
eait three years ago. It would have been
outlawed William T. Dodge mad not gone to Boston 70
make temperance address about year ago, and there
name sNycre rived m Inn