Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-02-06
tsprc1A1. rrLreaAn 40 THr prspArcH.I

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SrEUBENvILLE, February 6.-As was
anticipated and predicted by many Steuben-
vile citizens who knew the defendants in
the great suit of Thomas B.. Taylor and
other minority stockholders against the
Spaulding Iron Company and its majority
stockholders, the latter have full and suf-
fcient sworn answer to the complaint
which secured the injunction and the
appointment of a receiver, upon ex
parte procedure last week. Mr.. Charles
n. Spaulding, secretary and manager of the
company. to-day filed, by his attorneys,
Messrs w. A. Walden and William P. Hayes,
long, detailed and explicit denial of all the
charges of mismanagement, concealment
and manipulation of the proceeds Of the
company's plant at Brilliant O., near here.
The denial is. first. as sweeping and general as
were the charges in the complaint, and then as
particular and detailed as the most exacting
plaintiff could have demanded. The Spaldings
say they did not elect themselves to the man.
agement, but the directors did it, and in an en-
tIrely legal manner; they go further, and
all the trust and duly and fully
accounted to the stockholders for all the inter
ests Of the latter committed to their charge.
They deny that the nail factory was built for
$780, 900, and claim they can show 8 legitimate
expenditure of 500 900 more than that upon it.
OF all the stock and bond transactions referred
to In the complaint they say there has been
legitimate and complete accounting. Continu-
ing, the answer is as follows:
WITH PARTICULARLY.
Defendants admit that losses have occurred in
the corporations business, but own that the same
are in no wise chargeable to mismanaRement or
dereliction of duty upon their part, or upon the
part of either Of fthem. but resulted from combi-
their control-such, for instance, as putting
new plant into operation at a time when
therefor; the demoralization in the nail trade con-
sequent upon the introduction first of steel and
into the market and finding sale therefor in com.
petition with factories having an established
iness Of said corporation economically: losses and
injuries resulting from a long-continued strike
Joseph Haigh and John ' YeaTer. Who dIsregard, dd
ing their agreements with the stockholders OF said
corporation, and in violation of their duties as
well TO these defendants as to the other stock
holders Of said corporation, and to the corpora
ton ITSELF allied themselves with other striking
tion OF the business Of said corporation at the
only time since the mill was completed when
money could have been made by manufacturing
and selling nails and losses resulting from the
great flood of February, 1854.
e. 800 made as a result of running the mill for
II weeks since September 1888: neither is it true
manuTacture and sale OF muck IRON: nor is It true
that these defendants have claimed that a profit
was being made from the manufacture and sale |
thereof but, they say, the same was entered upon
as an experiment. and no actual loss resulted |
therefrom during the first year.
ONLY AWAITING A PROFIT.
Defendants say that II is not true that they have
neglected to have the nail plate mentioned in the
petition manufactured into nails, but 1t was their
purpose and intention to manufacture 1t into |
nails and I'LL their existing contracts for naiis
soon as the same could be done at profit.
Defendants admit that bonds OF tho said cor |
poration OF the par value Of o. oOO were given to
Alexander Glass and his mother in exchange ior |
stock Of the par value Of s o00 but this done
behalf Of the corporation, and by the direction /
and with the approval of its Board OF Directors,
in good faith under the belief that such action |
legal and valid. and was in the interest Of the
stockholders.
Defendants say 1t is not true that there existed
any necessity for the appointment of a receiver, A
and the interruption and destruction Of the cor
poratlon's business in order TO save the propertH
or to prevent the waste and destruction thereof; |
neither Is IL true that their management of the |
business OF said corporation has been unskilLful |
unbusiness like, negligent or ruinous, elthSr to
the property or business of said corporation. and
they allege that their interests, well as the in
terests Of all other stockholders of the corporation
and the interests of the creditors thereof are |
likely to be- and will be- greatly prejudieeA bY the
appointment and continuance Of receiver in this |
action,