New-York tribune., 1879-05-21
WILLLAM 2. CLYDES ANSWER.
DENYING THE CHARGES IN THE SUIT.

DENYING THE CHARGES IN THE SUIT.
HE ASSERTS THAT THE PROCEEDING BY THE At
ToRNEY-GENERAL is TO FURTHER PRIVATE
ENDs-DECLARING THAT THE PHILADELPHIA
AND NEw-YoRK STEAM NAVIGATION COMPANY
Is NOT INSOLvENT.
In the suit brought by the Attorney-General
for the dissolution of the Philadelphia and New-No orR
Steam Navigation Company, William p. Clyde has sub
mitted in answer his affidavit He charges that the suit
been brought promote unjust purposes and for pr
vate ends He denies allegations of insolvency against
the company and against the firm Of William 2. Clyde
& Co. He makes direct denial of all the allegations in
the complaint and charges Jacob LOrllard with numer
GUS breaches of faith The affidavit contains the follow
ing statementsi
For many years before the establishment of the Lor
Hard Line, William p Clyde & Co. bad been engaged in
carrying freight between New-York and Philadelphia.
After strenuous opposition several years Jacob Lor
iard had proposed to consolidate the two lines. The
result OF the negotiations was an agreement between
Mr. Lorillard and W. r. clyde Co. from rom Thieh % the
steam Navigation Company resulted The original
~ NIr TGriiard should confIibnte The steamers Vim
dcatOr and Fanita at the valuation OF S170,OO0 and
CgTe Co six canal steamers valued at 100000 and
the steamer Alliance at $4,000. They were to take
stock in the new company for these amounts but. IN
mat Mr. Lorillard should surrender $4,000 of
stock par, for which Mr. Clyde should give
per cent. The agreement also provided that W.
f. CLYDE & Co. should have the management
were TO guarantee TO Mr. Loriard an annual dividend
not less than7 per cent for seven years No salaries
and the commissions were TO cover ordinary
expenses. Dividends, when earned; were to
t6e books and papers was granted to Nr. Lorillard
Neither the Grm OF Clyde & Co. nor Mr. Loriard was to
he interested for seven years III any competing line be-
tween New-York and Philadelphia without tho written
Was agfeed further on June 15 that if either
should receive any payment or perquisito di-
recty indirectly from any person, result
il Should accrue the benefit OF the company. Prov-
sions made the day for arbitration III
ui dsagreenentS, ana Tor by-ldWs l0f tAe new com
pany Ten per cent OF the net profits after paying the
Der cent dividend, was 70 be set aside as sinking fund
for replacing vessels ana otcr purposes was agreed
that the might divert temporarily any of the
property of the company whon 1t eouid be enployed
more prOitably In accordance WIN nese agreements
articles Of Incorporation were completed Oh June 10
he affidavit declares that during tie first sx months
tle management Of tGe sea-g0ng lice remained under
MIR Lorard. the subsequent ust or the vessels Tor
business other than the transportation OF freight be
tween New-YUTk and Philadelphia was with the fun
fnowledge and consent Of all the officers ana
directors Of the company, ana Tor IT'S eX-
elusive benefit. Otherwise the vessels would have been
unemployed during the time the Delaware and RaIian
Canal open. BY the agreement under which bust
ness was done through the canal, tolls paid all
freight between the two cities whether transported by
canal by outside lines except wien the canal was
closed To navigation The LOrlard vessels could be
used the canal on account OF their and draft
The company met at the outset vigorous opposition
ana III hs AFFIDAVIT Mr. clyde charges that Mr.. LJrdarl
approached the principal competitors with propositions
10 sell out lie stTOVe 10 Obain majority OF the Stock
and to that end offered to John 4. Leslie $1,000 for
hs one share Of stock Mr.. Clyde charges also that
the secretary Amos Rogers has been III communication
with Dir. LOrillard in consideration Of his promising
tos become bail for Rogers IN any suit brought
agaiust linn for embezzemeLt by Clyde Co. II is
alleged that at time Mr. LnTillaTd proposed an
arbitration OF the existing diiculiies and selected
George ". Oumtard as referee Accordingly agree
meut made on October TO- ISIS, but II revoked
four days aier BY Mr. Lor9rd Further propositions,
acceptable TO Mr. clyde, had been made but no; carried
out.