New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-11-01
COTTON OIL TRUST RUMORS.
REPORTS OF A DEFALCATIoN DENIED.
MEN WHO IT WAS EXPECTED WOULD BE MADE
DIRECTORS DECLINE-wHAT is SAID
BY VUOsF INTERESTED

BY THOSE INTERESTED.
The annual meeting of the American Cotton Oil
Trust will be held today The Beard is classi-
he'd one, consisting of nine members of whom
three retire each year. 1t had been arranged
that the three vacancies should be filed by the
election of Henry NJ. Flagler, secretary of the
Standard Oil Trust: James NJ Constable of the
wellknown drygoods firm, and Frederick F. Oh
cott president of the Central Trust Company.
All these candidates are understood to have de-
chned the honor late on Wednesday night, and
the ticket which will be voted to-day will in
cludc the names Of Y. K. Fairbanks, of Chicago,
and Mr.. Anderson. of Cincinnati The only
change in the Board likely to be made will be the
substitution of President Sheldon. of the Prov-
dence Oil Company, for Mr.. Kendall, who is said
10 have represented similar interest.
sharp decline in Cotton Oil certificates at the
Stock Exchange yesterday called attention to the
affairs of the Trust 1t rumored early in the
day that prominent officer OF the Trust was o
deiaulter and fugitive lie said afterward at
'he oilice of the company that the rumCrs were
wholly false. That he had rot fled to Canada
with the funds of the Trust was proved by his
presence. So far as could be learned the situa-
uon In the Trust is something like this John H.
flagler and Jay o. Moss, the president and
duty TO support the price of certificates ana also
the price of lard. which affects closely the
value of cottonSeed oil. The ventures were not
profitable, it is said, and possibly for that reason
some Of the other trustees objected to Them
The exact line between official action and personal
responsibility seems not to have been drawn sharp
~, and the complicated interests of the Trust
might confuse the brightest minds When the
mistake was pointed out the executive officers of
the Trust accepted the losses for their personal
account ana secured the Trust with such assets
az they had In hand The Trust probably has
iess money IN It's treasury than il had few weeks
ago, but it has been enriched with assets in its own
hne OF business. The restitution is reported 10
nave been made few days ago.
wan Street was curious 10 know whether the
rumors Of defalcation, which officially were said
10 ne false, had anything to do with the refusal
OF Messrs. Flagler, Constable and Olcott to take
the proifered seats in the Board. John II. Flag
Ter, president OF the Trust, is cousin of Henry
NJ. Flagler, Of the Standard Oil, who was said TO
have consented to the use of his name.
henry NJ Fhglcr excused himself from per
sona interview with a Tribune reporter on the
plea OF a,pressure of business. 1hrough his
tary Slr. Flagkr asked to make statement
respecting Cotton Oil Trust affairs, particularly
10 act rs trustee, but had withdrawn his consent
on Wednesday night The reply brought back
was as follows Mr.. Flagler says that he never
gave his word to serve as trustee The circum-
stances were similar to those Of numerous
IN which he has been compelled TO decline the
Office Of director or trustee, namely, that his
duties a Standard Oil trustee prevented him
from accepting any outside Office. Mr.. Flagler
would be perfectly willing TO become trustee
Of the American Cotton OIL and the only reason
for his decnation is thnt Just givol.7
hlr. Olcott, Of the Central Trust Company, ad-
mitted that he he'd agr ed 10 become member of
the board on condition that Henry NJ Flagler and
james W. Constable were the other new trustees.
He said their withdrawal would prevent him from
taking the office.
The rumors about the election were frequent
and varied. At one time it asserted that
General SGrnuel Thomas WIS selling the stock and
afterwHrd that Henry VI. Flage? had thrown his
holdings on the market The transactions
amounted 70 LA. 900 shares while the business
in the regular market was only 100000 shares.
The unlisted department exceeded the other mar
ket in interest.