The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-02-12
A VILLAGE COMPANY. -

THE ENTERPRISE WHICH PEOPLE OF SETAUKET,
L. l., UNHAPpII.Y INDoRsED
setauket is ordinarily very quiet village but has
within lew days become the oil extraordinary
excitement. situated the north shore OF Long
Island, in Suffolk county, on an arm OF tho Sound,
short distance the westward OF Port Jefferson, and
reached by OF the branches OF the
Long Island Railroad. About nine months ago
a corporation known the Long Island Rub
Der Company organized. Parties came
from Brooklyn for the purpose, among them Il. s.
Manning who elected president, and Il. S. Albert
son-who is said to have been once broker in Wall
streei-as secretary. Great Inducements were held
out to the people Long Island ana OF Suffolk county
in particular to subscribe for the stock. The company
was formed on the basis OF $i5Oooo OF cap
ita called common STOCK" and 100000 VI
preferred stock The latter sold the rate
OF seventy-hve cents the dollar, the proceeds to
furnish the working capital and to DO a preferred
holders OF the common stock could receive anything.
great many guhIble people, 1t appears bit at
the oait OF preierreu stocA among thch = numoer
whom arc people OF moderate circumstances, and
many who were induced 10 subscribe lhsir small
means by the promise Of permanent employ nenl
No suspicion that there was any fraud contemplated
III scheme seems to have been aroused in their
minds by the TACT that ut the first election Of direc-
tors, held short time ago, only two representing
the preferred" stock we're elected, while
three we're chosen represen tlug the ''common stock
The projectors OF this scheme took the precaution
TO secure, by some means, number OF influential
coadjut in the neighbornood. Among these was
Mr.. Harvey Markham formerly editor OF the Inde
pendent Press at Port Jefferson, and tho Rev Ephraim
HallocK, OF Seauket, through whose influence 1t is
alleged, u number Of SUBSCRIPTIONS were obtained.
One OF tho subscriptions, mado by MI. Lyman b.
Smith, It understood amounts 10 $40 OOO the Vice
President OF the Suffolk County Savings Bank at
Southold Mr. r. T. Goldsmith, subscribed Sc, 000 and
one others over 200 eacn, but The great
jorty OF the subscriptions were by persons OF mod
crate means. The amount thus subscribed was about
SIS, 0OO; the amount actually paid In was about
500 OO0 winch appears have been all used in put
Ting machinery. The company now IN debt to the
amount of about $40 900. 1t mated that there
as many subscribers the stock there ara ncmnaIy
shares oi lie capital stock, and question 10 DO de-
clded by courts whether not the holders vi
the ICON non" stock lot equally liable with the
holders OF ''preierred stock, aud Is another ques-
ton whether the projectors OF The scneo cannot be
indicted Tor iraui. The doors Of tho establish ment
have been closed Tor several days. meeting of
the held yesterday at Setauke when
the above and other facts dvulgvd and
taken ascertain the exact status OF the parties con-
cerned. Ever since the company" started u has
been very extensively advertised almost every
paper Ia Suffolk county and some IN Queens sounding
it's praises their editorial columns and thus adding
to the inducements Tor subscribing 10 tue stock.