New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-04-15
THE CANADAY SUIT.
OPERATIONS OF THE cREosoTE COMPANIES
DISCLOSED.
SEVERAL, SENATORS AND PROMINENT MEN IN
TEREsTED IN THE ENTERPRISE AND DIS
SATISFIED WITH THE MANAGEMENT.
icy TELEGRAPH TO the rRlBONE.I

SATISFIED WITH THE MANAGEMENT.
rgr TELEGRAPH TO THE TRIB0SEl
Washington April 14-The differences which have
arisen between the Northern stockholders ana tho
North Carolina stockholders OF the North Carolina
| OH and creosote Company, and which have resulted
| a. tho hrIncInr Of a suit agairst the company by
senator Jones OF Nevada ex-senator Malone OF Wiz
o,rIa and ex-senator Warner Miller and ex.Congress-
| man George West OF New.York, are subject OF
| lively comment in Washington on account OF the
prominence of the parties to the suit Colonel ".
| p Canaday who until two weeks ago was president
:, tho comnanv is serceantat.Arms Of the United
States Senate and his Official and PERSONAL roia'ohS
| With members of that body have been such as TO
enable him 10 dispose Of good deal Of stock ahu II
the assertions Of the plaintiffs are true 10 reap snug
rroht for himself and his silent partners whoo'er
| they may be- Among the Senators, besides thoSo d.
ready mentioned whose interest In tho creosoe ous'
ness was enlisted by the persuasive seFgeanLaeArns
uoro Mr putler Of South Carolina and Messrs. Vest
| Cameron. stanford Hale and Plumb. Tho business
| of the company is TO preserve timber by ming its
pores with creosoto distilled from wood oy patent
process which is said 10 be OF great Value. INC
enterprise itself is strictly legitimate and II wen
managed, very profitable.
| Tho company was organized several years ago
under a North Carolina charter with capital OF
| 100000 in shares Of 300 each. One OF the ffst
| investors In the stock General Malone He hau
personay Investigated the subject and become con-
WINGED that the business, II carefully ana honestly
conducted would be profitable He bought $50 shares
| NJ 500 per sharA, which was pad in cash. ana u
member of bis family took 100 shares more at the
Same rate Senator Butler subscribed for fifty shares
for which, Il Is said, he subsequently paid by ser
vicrs rendered 10 the company. Senator Vests name
Was down for $50 shares the certificate for which nc
a. said to have disposed OF 10 one of the directors OF
| the company at a fair profit. But these were early
and comparatively small transactions in the history OF
| mad final
IN enstinr the interest OF Warner Miller, then mem
| her NJ the Sonale and no bought 400 shares, for
Witch a. is said he paid $50 share, making cash
investment Of 100000 besides which. IL Is unoersoou
he accepted or indorsed personal notes OF sergeana
| Arms Canaday, the president for some Slo,oOo OF
! $4,000 more which notes arc said TO DO stu UNPAID
| About tho same tme Congressman George west DO
came the owner Of $50 shares, for which he PAID III
cash. $50 TO $50 per share making his total invest
ment some S35. 900 10 100000.
| At later date Senator Jones bought 400 shares
| at SIS a share, making his total cash investment
| $4,000 The inventors and owners OF the patents
| which the company was using had received 2'Ooo
shares of the stock for their patents plant etc Iha1
boldinr virtually gave them control Of the company
and IN order TO protect tho interests OF tho stock
ho,acrs mol was formed into which was turned the
| stuck owned by Messrs Miller, Malone, West ann
Canaday and 100 shares hold by inventors under an
agreement that none OF said stock should be dlspos
| OF the
az the pool and that II such consent werc gwen the
| members of the pool should have tho option OF buy
10, tho .,ock 10 be sold Warner Miller was appointed
,r,see of the stock IN tho pool, which consisted oil
| n majority Of all tho stock Issued down to march
| 90 1880.
| The company seemed to DO prosperous. Three au-
nual dividends OF per cent each were deoiaeu anu
pald tho first two IN cash and the thiru III stoeA'
BEFORE that however, the stockholders who had con-
trhutod the bulk OF the money paid In became dis
satisfied after a personal investigation Of the aars
| OF the concern. The business management was not
10 their liking and besides. they were Impressed WIN
| tho belief that the president OF the company was
Specializing In the stock not only In Violation OIL tue
pooling agreement but Of the charter Indeed theS
,,,.d On hive absoluts proof Of the fsct In March,
1sao the Northern stockholders aud General Malone
bs,d copfersnce IN this city, and agreed that the ~
trress of all tho original stockholders would DC pro
NOTED by the retirement OF tho sergcantai-hrhs' HF
| Canaday from the presidency OF tho company o
| was therefore urged 10 resign. Although IN o''e
nocro,,rv straits he refused to DO 50. After some
d.s srert in frttiexs negotiations Colonel Cansnay
| and his intermediary suddenly loft Washmg'oh' anu
,,vo ny three days aiterward ho called meeute Vi
| The restdant directors in North Carohna VI NOV
meeting Il is said neither Mr. Miller, Mr. west "o'
| General Mabone who arc directors, received any
80 Colonel C,uaday resigned the presidency
! ,,a = r,solptlon was adopted empowering his sue
| ..s.or IN ncdge ali the stock Of the company uoh
unsold 7s1 shares, security for loan Oh @~0o0O
! for the use and benefit Of the company rms S0U''
On. DIaintiYs contend, unauthorized ana iheea'
| prior IN that transaction, however, matter came
| ~ Uoht which IL said 10 have an ugly looH 4h'I'
came to Washington John C. Calhoun oil new iorA
,ho =. \ personal friend Of Senator Butler who was
nm. Of the original stockholders In the CTeoSo'o |o
| many From Information which Is peheVeu u DO
| trustworthy, IL appears that Colonel CanA'AS "a'
obtained a loan oI $4,000 nom Mr. Calhouh' u'-
| NJ atq
| Cr.osote Company the certificate for when Sharoo
- -, ,,ca purported to have been issued 10 Senator
Iones and on its back to bear his signature as an
| Indorsement The number Of this certificate IS To-
n Is asserted that tho highest numOeto1 ~ Az
Teor,larly Issued according 10 the STOCK boOR ot ulo
company. Is les. Tho loan not being repaid, Mr.
Calhoun cae washington 10 consult seSst2T
Jcnes ssert that II afterward shown 10 MN anu
that he declared that he did not IT., ~T bs
and that be saw tho paper before o,,ro,v ,e
some mC after the North oaSSTs COMPANY BaTer On in
| Florida and organized a branch or subordinate com
pany, with headquarters a. Fcrnsndlna There have
Interested on account Of the management Oh mat eon
Germ also II IS understood hst aoVo sh Sn co, Oh
pany show cash receipts on account OF sDck amount
about an S ave 81 aoQ who w we're re S
duced to pat their money into mis- sEierpsse Paa
gs in he pending suit declare has been manipulated
by Colonel Canaday and or two silent partners inr
their benefit. Among tho w inc
Pernandlna Company are Senator Cameron who holds
900 shares, for whct he paid s4C per share; SEN
aor Stanford Who 70 is said, paid $50 per share for
300 shares Senator Hale who paid at tho same rate
for 100 shares, and T. W. Clark of Washington who
took 1873 shares at $40 per share IL
these statements be correct, half of the
entire amount realized by the company
nom 4 600 shares was paid by tho holders of 7ss
shaos-less thar one NTH of the entire number Issued
Senator Plumb Is said 10 have been large holder OF
this stock at ono time but neither the amount OF his
present holdings nor the price he paid IS known.
General Malone Is a stakeholder and director in the
| Fenandina Company also. 1t is said that he was
admitted on tho ground floor" and paid $40 per
share for 500 shares which he stu holds. A friend
| Of the attorney for the plaintiffs to-day said to a
tribune correspondent that some rany developments
stock are aired in court The Sergeant alarms, Mr..