The Daily times. [volume] (Richmond, Va.) 1886-1889, 1889-04-13
MALONE 4 COMPLAINANT IN AN IN
TERESTlNG SUIT.
DID CREOSOTE SOORCH HE
SPECULATIVE HAND.
SERIOUS ALLEG sTIONs AG iINsr MIR
CANADY.
4 Coiored Republican Preparing &" sling
Ink at the President-Mr. Harrison
Kebuns a BoOdler-1he Colored
Brother 10 be Ignored.
lsrecIal Correspondence Of The Tnnsl

tho United States Circuit Court for the
Eastern District Of North Carolina, al
Raleigh The complainants are such
distinguished persOnagcs as ex-senator
William Malone and Warner Miller,
Senator John =. Jones, Of Nevada, and
ex-Representatiye George West, on New
York. the principal stOckholder IN the
New York Pros The respond.
cut is The Carolina OH ana
Creosoie Company, of which W.
+. Canady sergeant-at-arms ol the
United states Senate, was recently fresi-
dent The bill Of complaint which has
been filed. charges fraudulent and cor
rnpt practices ON the part of certain Of
hcers of the company and principally Oh
Mr. Canadv The Carolina Oh and CreO-
sole COMPANY was organized for the pur'
nose of manufacturing WOOd-cre0sOie oli'
and the complainants subscribed 10 me
capital stock of the organization The
capilal stool, amounted 10. 100000, dl-
viied into shares 40 a par value of 500
each With the paid zap stock, expensive
works were constructed at W llminglon,
y & and the business of nc company
appeared TO be prosperous, one semi-an.
uual dividend having been paid OF 3 per
conf f0thc stockholders Cauady, who
the president of The organization, in
violation of one Of the bylaws, resigned
hi. posifion. and AZ an election which
the complaiuant- alege 10 have been The
result of a conspiracy A. 4. Thomas OF
WashingiOn d. G., was elected presi-
dent After This election, which the
complainmls allegc 10 have been am inn
prsner one. seven hundred and eighty
one shares of the cOmpanys stock were
authorized 90 De issued for the purpose
of arranging loan of $4,000 Ihe
meeting at which the board OF directors
authorized this issue OF stock De-
CHARGED TO have been at the instance
of secret and fraudulent understanding
between Canady Thomas and others IN
known for the purpose of raising money
for the private use Of Canady II ls
charged that this stock was hypoihe-
Gated with John G.. Calhoun, Of New
York. for the purpose OF obtaining
loan of $4,000 for the benefit OF Cana
dv II is charged that some of this
stock which was reported by Oanady io
have been sold by him for $50 per hare,
was sold by him in some instances al
$ 40. 500 and $50 share, and that Cana
dy appropriated the difference between
the amounts 90 his own use, thereby de-
irauding the company.
Tlemost scfiOus charge that Canady
has issued in the name of Senator John
+. Jones. of Nevada. stock t0 the amount
of 900 shares. upon which De inoor ed
the name OF Senator Jones without the
knowledge or consent of that gentleman.
and attempted 20 hypothccateit This. u
proved. would constitute forgery. all
though the present suit is n civil and not
criminal one
\ number OF irregular transactions
are alleged TO have iranspired between
Canady and two other stockholders.
named respectively Hanson and Smith.
This consisted in The transfer OF stock
between the parties which Was prohibit
ed hv one of the bylaws of the Orcani-
zati0n Canady is also charged with
having organized another creOsoic com
many t9 operate 10 Fcmandna, Fla, and
arranged Tor ihe use of the patents of
the Caroline company, which was an im-
proper diversion of the rights of the lat
ter company.
Ii appears that not only the members
of the company. have suffered IN these
transactions. bur that outside pmiic-
have been yictimized According TO the
statement of the counsel for the com
plainants. Senator Don Cameron, of
Pennsvlyrnia invested Sl2 900 in the al
eyed fraudulent stock II the result Of
the sui shows this stock 90 have been
irreeularly issued. 10 would seem that the
senior senator from Pennsylvania is our
lust that amount
The scandal has "a political effect.
Canady has for long time been the
active co-Operaior with sherman and
Malone in the effort 90 advance the for.
tunes of these politicians in the South.
Ii is not known that Nj sherman was
nipped in this transaction. In matters OF
business the Ohio Senator keeps out OF
balloon enterprise Nevertheless
family quarrel has been started which
will in the end probably disclose the
methods by which Sherman and Malone
have worked the Southern politicians.
There Is one inevitable result Of the
present suit and that is the rcorsaniza-
ton of the officers of tho United States
senate This has been thought OF for
long time, but no convenient opporluni-
iv offered itself IL win, however, be-
impossible, even if it is desired, TO ignore
such charges as conspiracy and forgery
against the sergeant-at-arms OF the Sen
ate, when those charges are made 10y
such prominent persOnages as Senator
Jones and Ex-SonatOIs Miller and Ma
hone. The bill of complaint was sworn
10 by General Malone.
There is expected to be very shortly an
interesting letter in the dailypapcrs OF this
city from Perry Carson, the acknOwl-
edged colored Republican in Washington.
4 few DAYS since Perry was at the White
House, and managed 20 get an introduc-
ton 10 the President through the kindly
efforts OF Senator Blair, from Ne"
Hampshire, and the father of The cele
braied Rlair educational bill.
Some OF the papers commented rather
strongly upon Mr. Blair's action in Oiler--
inc his services 10 Carson, who Is a
saloon keeper, for such purpose. Mr.
Blair replied in an open letter stating
that he was not aware OF Mr. CarsOn's s
business, and, furthermore, apologiziug
for his actions on this occasion. This
has aroused the indignation OF Perry
Carson and his followers, and il is stated
that the Republican boss is preparing a
spicy letter in which be arraigns not
only Mr. Blair but the Chief Executive
also
4 gentleman from Alahams, who has
been making himself conspicuous around
the White House, and who is desirous OF
becoming the dispenser of the doodle
which belongs 10 that State met with "a
severe rebuff from the hands of President
Harrison. he has endeay0red TO hurry
matters al he could. and to-day visited
the White House with this noble pur.
pose in view When he had
had his say, Mr. Harrison turned
to him, and in that icy, cold manner
said to him. Mr.. Mosied, you have been
here quite frequently OF late and | know
all about you You need not put your
self 10 any further Inconvenience 10 call
here again upon the business which
brought you here to-day. | should be in
a very pitiful condition, indeed, If had