The sun. [volume] (New York [N.Y.]) 1833-1916, 1884-05-04
ron srsO.ooo DAxAoxa.
The ssts sf tie Essss I.sek Csapeay Asasss
the Western Lssk Csasaay.


The 1sss sf tie Eagle l.sss Csapaay Asassss
tie Western Lsea Csnssay.
CLEVELAND, May 2.-The great suit Of the
Eagle Lock Company Of Terryviile Conn.,.
against the Western Lock Company OF Geneva.
o.. 10 now on tria, before Judge welker and .
Jury In the United States Circuit Court There
are nine lawyers In the case. and II will con.
aume weeks. Tho deionce has over sixty Wit
nesses The Eagle Company sues the Western
Company and nfty-nine stockholders. indivld-
ually. for $3.50. 900. because Of alleged fraud.
Tho Western Lock Company was organized In
the little town OF Geneva In June. 1873. Z. l.
Perkins. q lock maker from boyhocd. was tho
originator. and became one OF tho directors.
Perkins's scheme WAS to manufacture . large
quantity OF material. 0lling tho factory store
house to overlooking with 100000 worth OF
goods. and then send an agent 70 the largo
jobbins firms throughout the country. cut
prices 10 per cent. unload before rival firms
500. 900. Talcott. n local hardware dealer. had
Ths y
close hidden. a. Perkins had proposed, sold n
large number as fast as produced. and prices
large jobbsrs. were heavy buyers. and they in
turn sold tho locks tn the Eagle Lock Company
q q, Tsrryyllls At an advances o. i've per cent.
cheaper than II could man ufacture them.
Naturally enough. crisis came In the Affairs
Then the Board OF Directors assumed that Tai.
removal. Then Perkins proposed re that ths com
n aMss @ sHs nss sss.
gs%sa s%%s: q sSs! estate %
5 s5s$ M isSI{;!s: S!sse
as Hse d to p"reh ss
Company possessed. payinxs seior 600 shares
sheS S s. ssSsx par CASH. and and
e assume si27.O0O Of ths In ,eern's liabilities.
ws ss. aoWn "na ". Ss1sa
T Yer, harTey out q on their
s1SSs 81 1t sni iih ssp!ts ''0'. was
The day before N transfer was made tho
How is L Tia. stock is se worth " only Il
cents on the doliary' appointed . committee
sion from the new purchasers to examine tho
books books; An expert from Cleveland was EN-.
9sSor sn :ss Ss OF ows 10 x. %on H
been 's's Seeming S Sro WSen hs 81
Ssa ., se
count was kept: and when tools wore out nnt!
70 the Sns
flated to more than twice its value.
In estimating the cost vi manufacturing locks
no account was taken OF the depreci0tion OF
machinery. All over the cost OF labor and ma
July. 1850. showed that ssS zoo worth Of manu- n.
iact anS goods had yielded profit Of $4,000.
Tho Eagle Company directors also invssti.
had bsen swl9dled. They claimed that the
scented; that instead Of e36. 012.27. the accounts
were $40. l62. 10 that the machinery WAS worth
less than $50. 1864. instead OF sS2. 4s3 "a.
stead Of $40. 900.
Although the Eagle Company sues for $780,
600 damages $1O6. 900 represents the difference
between what It paid for and what 1t supposed
1t was getting. Between what It paid for
and what It really got, a. difference OF
$50 900 or $4,000 is claimed. The attendants
ut the trial mainly the general stock holders
OF the Western Company. who are interested
as defendants. majority arc gray-hAired,
solid bus ness men. who listen intently. and
prompt their six lawyers frequently. Nearly
all OF the witnesses for the plaintiff were for
merly In the employ of the defendant having
transferred their allegiance when the sale was
made. Two large dry goods boxes full OF bills.
invoices. &c.. are IN the court room. and two
mon fish out the documents when needed The
alphabet has already been exhausted In mark
ing exhibits. Nearly all the narties to the suit
are wealthy, and. whatever the result Of the
present trial the cnse Ia likely to DO carried to
the Supreme Court OF the United States.