New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-30
MR.. KBILY'S NEWSPAPER STOCK
DISPUTING THE QUESTION or CONTROL.

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Mr.. KEILY'S NEWSPAPER STOCK.
DISPUTING THE QUESTION or CONTROL
AuIpAyIs ~ ice LInGAIIoN OVER THE EVEN
ING EXPRRss-MR. KTILY's ANSWER TO
CHARGES BY JAMES W. BROOKS
Prominent lawyers appeared before Justice
Daniels in me Supreme Court Chambers yesterday, IN
the controversy between James Wilton Brooks ana
John Kelly for tie control OF The Epcaing irPrcss
newspaper. The Court room was filled with plAltan7
and other spectators william 4. Beach rcpr, seutc
Nj BROOKS ana Jonn H. siralan ana eXJul-o Cagioz'
the defendants Mir Beach read a0i lavt by Mr.
Brooks which declared that be had been the owner o.
eighty shares Of the newspaper stock uutu March -
1880, when twenty-five shares which he hal put INTO
tho hands OF j. Murphy collateral security ior thr
loan Il - GOO were trans erred 10 tine OF A-
Murphy; that the first inumaton he received that
he had only Gity FIVE shares OF Tie stock was at tae
meeting for the election Of trustees March %. when
l. H. Straban voted by proxy for Mr. Murphy on the
twenty-five shares OF stock When Mr. Brooks contested
his right TO vote on these shares john H. Moonc, the
secretary prod iced the books 10 show that the stock
had been transferred March H. ard tie Inspectors
OF election oveTruled the objection This result di ntho
election OF Edward Keagney J. J. OponOIue and j. II.
Mooney who were adhereDts OF Nj. Kelly, as trustees
instead o. James W. Brooks Era5tus Brooks aud sam
ucl Marsh, for whom the plaintiff cast LIS votes. Mt
Brooks declared further that the bylaws OF the asso"
the election Instead OF the third Monday that on the
second Monday the eighty shares were IN his name.
md he was ready to vote them that when Ac OK
amined the books On Saturday March - they silI
stood in his name. aud the whole method Of secret
transfer and voting a scheme 30 deprive Lin q
bis rights by " overIcaoAing methods"
M strahan read the oppoG1g afAdny;i'. John holy
ayerred that he had been siooahoder OF zo ETDress
Company since rs organ zauo1 F1r somo time pre-
vlous he urged 10 ala 20 mud help 10 make II
strong Democratic sheet The first Overures lie rejected
bus Eras1us Brooke afterward came 20 MN md 40
strongly pressed the political reasons FOR tie step That al
last he agreed to undertake tho task % adaLcus tho
paper 10 a position Of in1ueaoo and useful
ness % tho party, The paper al that time
was OF Little value and was 10 lonSer
source OF profit Bl Kelly cecl red shat lac was relied
upon entirely to raise the necessary amounts 20 make
a good newspaper part Of the stock was placed az
Mr. Kcys disposal and no succeeded in getting his po
Hucal friends interested In tho matter that they
agreed to purchase the stock In this way $4,000 was
raised and placed to tho orott Of the company as a
working capital. Erastus Brooks took nlnety-four Of
the 80 shares and James wilton Brooks nincty-.our
/ shares.
| "I, myself" Mr. Kcly's enliayit continued, held
eleven shares and my political friends held the balance
except few shares which heifby frend5 or rela
tives Of the Moqsrs. Brooks. The management OF the
paper under the corporation, continued for some time
/ in the hands Of Ia Messrs. Brooks Their management
and the paper WAS still running behind The necessity
Of acting became Imperative the paper continued
| ~ Dc published. Nr James Wilton Brooks was himself
| dissatisfied with the management OF Mr.. Erastus
Brooks ana repeatedly urged upon the desiraby OF
n change. Having become and being widely known az
identified with the undertaking, determined to make
further efforts It's behalf The Messrs. Brooks would
give no pecunary assistance the burden again fell
entirely upon me. To make certain OF change in the
management necessary to maintain majority Of
the stock OF the company. Mr. Erastus Brooks agreed
10 sell for $4,000, sixty-nne OF the ninety
four shares held by him ana Mr. James
Wilton Brooks agreed 10 sell for $4,000 fourteen OF
the ninety shares hc held with the assistance Of
my political friends raised that amount, ana We puf-
chased tue elghtythree shIes' We haue tese PuI
chases for the express purpose and with the dsuno
understanding that the management OF the paper sbOna
INTO effect. Mr. Mooney became OF the new stock
holders and elected trustee The financial man
ngement placed under lis charge. Both the Me'srs
Brooks continued 10 act as trustees, ana were DOt 20
knew Ia perfect sympathy ana Hoooru WIN me
ne" ana better MANAGEMENT OF tns p"P H. ood,n5
matters had msgivings until some tlme preceding
notice appeared III Of the evening papers that MI
James Wilton Brooks had been endeaYoring TO make
certain ombinsons FOR the purpose OF again obtaining
the control the newspaper which was then TO be con
Quoted In particular interest. which II true certainly
Nc Kelly averred also that he believed Mr. Brooks
being used By designing persons TO e1ect me change
Anna Teresa Kelly, the wife Of john Kelly, which Mr.
ana simply because Mr. Kelly had demanded them. Mr..
Kelly said: TINS statement and all me other state
mems IN the affidavit OF the SAID James Wilton Brooks
in to these ton shares, are malciOusy false
acquired the shares on the organic On ~ the company
IA 1876. Mrs. Kelly not then my WIFE and did not
becone 80 until nearly year afterwards. the
STOCK TO my wife by transfer To her IN June 1877 and
never had any consultation or commune aOn with The
Nessrs Brooks any other individuals ~ the ira
fer by me- Mr. Kelly ayerred asO that 10 ply $4,000
of debts pany bonds were Issued OF which ne
TOOK II 900. Augustus Sch II $1,000 ana Mr. Mooney
10 600 The Messrs Brooks did not contribute ono
cent 10 tho rec Establishment OF the paper Mr. Kelly de
MES the charges OF combining TO deprive MI B0oks or
mis- rights aud his pecuniary responsibility Mr..
Brooks she last person III whose charge ne "Ouu III
trust inc financial management OF daily newspaper
Augustus Schell made AFFIDAVIT that he had not com
bined wh any peTsQns against inc intgfess " te
tested regularly transferred 10 ne name OF
j. j. Murphy. This lat ler avcrmen was supported by
an AFFIDAVIT Of Mr. Murphy, aud John II. Mooney
ayerred that bylaws provided for the election on
the third Monday IN Msfcn.
MI Beach said that there were two points on when
the aldavIts In direct conflict the first as 10 the
time holding the election according TO the by laws,
aud the second the ton shares held by Mrs Kelly
Mr. Reach Thought that the former the more I'M
portant and that he argument could not De continued
n.Il that settled. lie thought that II should be
sent 10 referee with power 10 compel the prOduc Ion
of the books show when the change In the bylaws
was made. Ex-Judgo CardOlO alhO thought that the
questions should be settled before referee, but that
fne inquiry GU gh not restricted TO any partc
mar IN controversy They, nOscyer represented three
defendants, MesSrs. ODOnOhu0 Mooney and Benrney
VINO nad no control the cooks and could not pro
hlce them Mr Beaon answered that the allegations as
10 the management Of the newspaper by the Messrs
Brook SWerC not material yet IN were Wiling 10 20
into the whole question Of Mr. kelly's generous ana
unselhsh wOrk Tor the newspaper III WAS the custom
nowadays to agTandize the merits Of some particular
men, and did not know that there was any harm In IT,
| Juder CardOzO-Then We are a0re3d on that.
AIR Beach, don't know about that
Just. GO Dlnlek-IhIs csi seems TO be OF the
incidents Of our Constitutional liberty of speech II Is
evient that THIS matter should be sent 60 refereee
with that The books DO produced before the
referee -. q, -. ~, -. .., !, an. ...,.