National Republican. (Washington City (D.C.)) 1872-1888, 1881-06-04
THE COMPANY'S ANSWER.
What the Terra Gotta Stockholders Will
Say in Reply TO Dean.

u
Say in Reply TO Dean.
In the suit of Dean against the Potomac
Ferrl-Cotta Company Colonel Enoch TOtten and
Uau. Ualbert E. Paine have been retained and will
answer for the company. The answer viii show
that the charge that reports showing the financial
condition of the company have not been made
only applies to one year, and that the year when
Dean was himself president of the company that
the failure of Dean TO make this report
has worked no injury to either the stock
holders nor to the public, as the only penalty for
such failure is to make the stockholders iudivid-
ualy liable for the debts of the company; and, as
the company is ont Of debt, there can be no la
bility The answer will admit that the company
did take some notes in payment for stock, IN tech
meal violation of the law that it took the notes
of E C. Dean for $4,000, which notes were en-
dorsed by John Lynch then president of the com
panv, individually, and that after many renewals
the notes were finally paid in small installments,
and that the company lost nothing neither did the
community suffer by this technical violation OF the
law.
THE ANSWER WILL SAY
that, so far from the company being insolvent and
its property incumbered, there is no incumbrance
whatsoever upon the property, which consists of
about 75 acres Of valuable land and building; that
il is substantially free of debt, and has cash in
DaLk ana COCO DOIeS ana accounts dS dSScIS lHG
answer further says that Mr. Lynch, the president,
is the owner of three thousand shares of the stock,
the shares standing in the name Of S. E.
Spring being owned by him and pledged to
Mr.. Spring as collateral, a fact well known to
Dean, the evidence having long been in the
possession of the company, and while
Dean was trustee and president of the same; that
the president has not sold any brick machinery,
nor any other machinery belonging TO the com
pany; that the president never refused to allow
L. r. futile TO examine the books of The company;
out, on the contrary, both the president and the
treasurer of said company, approaching said
Tuttle'S knowledge of oK-keeping and mis- IA
niliarity with
THE AFFAIRS OF THE COMPANY,
repeatedly requested him to assist in balancing
he books and settling up its affairs which, on ac-
count of the sickness and death of Mr.. H. H. Nc
Kclden, late treasurer of the company, were con-
Edcrably behind; that the president of the COM
pany was so anxious to secure the services of said
futile that he solicited him to retain his stock and
to become the treasurer of the company, with his
son rs book keeper, the present treasurer, Mr..
Lynch jr being anxious to be relieved of the
duties, which he has only consented to perform be-
cause no person familiar with the affairs of the
company could be readily found to fill the posi-
ton. The answer will say that the intimation
that the President, who, it is charged, was repre-
Eenting the affairs of the company as much better
than they really were, was cOncealing from
stOckholder the rotten and insolvent condition of
the company for the purpose of purchasing his
stock which, according to the averment of Dean,
is not only worthless, but carries with it
a PERSONAL LIABILITY,
is supremacy ridiculous. That if under such cir
cumStances, person wanted the stock for any
purpose he would be anxious to make the
condition of I he pounDoDy aOTpar badly as ms
sible, and would offer every facility to stock
holder from whom he desired to purchase the
'TOrthlesS stock to obtain the evidence of its worth
eSsneSs. That the charge of Dean is that the Pres
dent, while desiring to purchase Tuttle'S stock,
vas concealing from him the evidence contained
N the books which would make him anX-
ious to get rid of it at any sacrifice.
The answer will further say that the charge that
ihe president and treasurer are in the receipt of
extravagant salaries and in collision with Mr..
J. c. McKelden the vice president of the company,
to absorb all the income in salaries, is utterly
false; that the salaries of the president and secre
tary are what they have always been since the for
nation of the company-SI0O per Worthwhile
the vice president
RECEIVES No SALARY
whatever except during the absence of the presi-
dent and while performing his duties; that so far
from either the president secretary desiring to
retain their offices, they are holding them only at
a sacrifice in order ID protect their interests as
stockholders, and that they only took these posi-
lions when, on account of the death of the late
treasurer. it became necessary in order
TO settle up the affairs Of the COM
pGny. The answer admits that Dean cannot
sell his stock at fifty cents on the dollar. and says
is not surprising that he cannot, considering that
he has repeatedly offered it at ten per cent, while
according to his present statement 1t is worse than
worthless To the charge that Mr.. Lynch practiced
fraud upon the stockholders in selling land to the
company for more than its value
THE ANSWER WILL SAY
that at the time the purchase of the Wiitberger
land Lynch owned all but 81 800 ofthe stock of the
company, and that the owners of this $3.50 in
stock agreed to the purchase, and have never COM
planned; that to the subsequent purchase of the
Queens and Talbert lands the agreement to pup
chase made by the trustees, Halbert Paine
Enoch Totem, B. F. Grafton, John Lynch.
and John Lynch jr.; and that said
purchase was subsequently ratified by a unani-
nous vote of the stockholders at stockholders
meeting, at which E C. Dean was present; and.
further that the price paid for this land was not
higher than adjoining land was selling for at The
time. To the charge that the stock standing in the
name OfWinslow and Spring was never paid iur, uut
only pledged, and had been
VOTED UPON FRAUDULENTLY.
the answer will say It's known by Dean to be false
that this stock has always baen recognized by
Dean and every other officer of the company as
genuine and bona fde stock, never having been
questioned and always included in the reports
of the company. The answer will charge
that Dean himself is largely responsible for the
non-success of the company, having become in
debted TO it to the amount of about seventeen
thousand dollars as contractor for sewering lie
city Of Jacksonville, which amount
HE REFUSED TO PAY,
and the company was compelled to bring sui! for
its collection, and finally settled. making Il dis
Count of more than fifty per cent. Of the
amount owed; that the money thus locked
up by Dean severely embarrassed the
company: that he used his influence to
injure the credit of the company and dcpreciate
the value of its stock that he solicited J. C. Nc
keden to unite with himself and Others to break
down the company and buy in its property al
forced SALE and that he has repeatedly avowed his
determination to injure the company and prevent
Ii from rebuilding its works and resuming bust
ness