New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-04-12
n. P. CANADAY ACCUSED.
SERIOUS CfARGES AGAINST THE sENATEs,
Observation-Disclosures.
PRACTICES AIGEGED By SEN.
I 4roR JONES, ExSENAToRs MALONE AND
nrr1ER AND ExREpREsENrATuvE WEST.
rnY rxLIoalpH TO THE zRIBusEl

I 4ToR JONES, ExSENAToRS MAHoNE AND
urrsEn AND ExREpREsENTATuvE WEST.
TEX qxLEoRAPn TO THE zRIBuSEl
w.sh,nrton. April ia threatened scandal, which
m, urohsbfy result IN the reorganization of the pres
~ CORDS of ofcer Of the United States Senate, has
ban brought to ltht by the filing on April 8 Of
81 IN the United states Circuit Court for the Eastern
pnr,ct Of North Carolina at Raleigh. The COM
ulin.uts are cx-ssnators William Malone and Warner
MET. Senator john p, Jones, Of Nevada. and ex-
Rs,esantatiye George West Of New-York. The
,ssnpdent Is the Carolina on and Creosote Company
a. thich W. p canaday, SergcantatArms of the
MIN States Senate was recently president The
mn eomula.nt which has been fled charges fraudu-
sept md corrupt practices on the part OF certain
once, OF tho company and principally on the part OK
M 6naday. The Carolina Oil and Cfeosote Com
many as organized for the purpose OF manufac turing
vocd reosofc oil, and the complainants subscribed
= ia .n,tal stock OF the organization. This capital
stoch sounted to $500 0o0 divided into shares at
mar walk Of 500 each. With the paid-up stock ex-
pensive sorks were constructed at wilmington, N c.
and the tsness of the company appeared 10 90 pros
MARQUIS O. semiannual dividend of per cent having
been paido the stockholders
Canadas the president IN violation OF one OF the
bylaws. rsigned his position. ana az an elecuon,
which tho smplanants allege 70 nave oecn inc res'
of a conslracy and fraudulent combination" A. A
Thomas. of Washington, D. c.. was elected president
After this clifton 7sl shares of the companys stock
were author>d to DO issued for the purpose OF ar
ranging lon Of $4,000. Tho meeting at winch
the Board of lectors authorized this issue of stock is
charged to hae been at the instance OF secret
and drsuduhx understanding between Canaday,
Thomas AMI offers unknown, for the purpose OF rails
ing money for the private use Of Canaday. 1t is
charged thst some of this stock, which reported
BY Canadsy to have been sold by him for 500 per
share, was sok by him In some instances ct
$40, $50 ax1 $50 share, and that Canaday appro-
priated the difference between the amounts to his
own use, threby defrauding the company. num-
Der of iregar transactions are alleged to have taken
place between Canaday and two other stockholders
named Hansn and Smith. This consisted In the
transfer Of sock between the parties, which was pro-
hibited By oe of the bylaws Of the organization.
Canaday is ao charged with having organized another
creosote conhny to operate at Fernandina. Fla.
and arranged or the of the patents of the Caro-
lima company, which was an improper diversion OF
tho rights of se latter company.
1t appears bat not only the members Of the COM
psay have suffered in these transactions, but that
outfde persc:s have been made victims. According
to tie statement of the counsel for the compliments,
Senator Cam,son, of Pennsylvania, invested $4,000
In the sllegel fraudulent stock II the result Of the
suit shoys tbs stock have been rregulariy issued,
It would seen that the senior Senator from Penn
sylvania on, just that amount
The cosplaiants in their bil ask tho court to en-
Join the dsend,nts from managing administering. or
IN any maer interfering with the business affairs Of
the company, and from issuing the 791 shares of
stock nenttned therein that the court cause to be
held SPECIAL meeting Of the stockholders. In ac-
cordanoe viii the bylaws of the company. for the
purpose Of raovng Canaday from the Office Of presi-
don't of said dmpany. and eecting president in his
stead that tn defendants be required to return all
records books accounts etc.. affecting the business
ard Hsansgemer of the company which may be now
10 their possesson: that receiver be appointed to
take possession md custody Of the property. and for
such relief as ma be Just and equitable.
10 the hill Is appended q series OF intexrogatores
ln whDh It appears that the complainants expect to
prove that Cansfsy and his associates have hypohe-
Gated the stock II the company; that part OF this
stock was deposited with John G. Calhoun. Of New
York sor the purpose of obtaining loan for his own
personl benefit: that stock has been issued In the
pane q John r Jones to largo amount without the
mowIdge of Mr. Jones. but his name has been In
dors upon the certificates thereof by some other per
son hat presidenx Of the Fernandina company
Canady disposed of some 1900 shares Of the capital
stock that company at rates much higher taan tRoso
Tor wfoh he accounted to the company