New-York tribune., 1891-02-20
APPLYING FOR A RECEIVER.
A SUIT AGAINST THE EDISON PEOPLE.
A DIsCoNTENTED Observation-Disclosures THAT

DIsCoNTENTED Observation-Disclosures THAT
FLUCTUATED WIDELY.
Martin A. Frank has begun a suit In the supreme
Court 10 have receiver OF the Edison Electric Light
company appointed and for an injunction restraining
the companys officers from diSposirs Of any of tho
@>'etS ot the company pending the SUIT. me case
came up before Judge nqrTiam in the supreme Court
'haInbers, yesterday upon motion to Nacatc All
order which had previously been secured for the eX'
animation of Edward H. johnson, an officer OF tho
company. Frank thirty shares OF the stock OF
thc company. lie has not framed his complaint yet.
lie says that he cannot do without the information
which he would get by examining Mr. Johnson
In an affidavit which was submitted TO the court
however he SAYS that the assets of the company
are bong diverted from the Use for which they wcro
originally INTENDED. This has been accomplished
largely he says, by the consolidation of the Edison
Elcctrc Light Company with the Edison General
Electric Company. lie complains also that a fund
which the Electric Light Company has earned, and
winch should be paid ont in dividends, has been re-
ttlle1 and put into general contingency fund.
Judge lnGraham reserved his decision upon the mo-
uon 70 vacatc the orier for the examination of Nh
Johnson
The officers of the company not at all worried
over this suit. Frank :. Hastings the treasurer, was
seen at his home No II. East Fifteth-st., last even
mg lie said that Mr.. Frank was undoubtedly pro
ceed!ng under misapprehcnslon
stockholders of the Edison Electric Light Company
ooud not or would not raise the money to go ahead
d'u develop the patents held by the Electric Light
company. II ought TO be explained right here that
the Edison Electric Light Company all the
patents used by the several Edison companies. Well,
"ieh the Electric Light Company failed to furnish
the capital TO develop and introduce the patents, Henry
Willard and Others raised the mOney-most Of 1t I'm
"cFndnyto establish the several manufacturing COM
pahIes. There came to be considerable competition
IN the business and it somewhat difficult to cS-
absh large plants In the different cities with local
capital
The same men who furnished the capital for the
manufacturing companies also furnished money to
establish these plants In many instances, thus
utilizing the patents of the Edison Elec-
ulc Light Company. Only cash enough was
required to be paid To meet the actual expenses OF the
company, and the entire profits in many instances
were taken in the stock Of the various companies
tabi'hci in the towns throughout the country. Tho
original capital Of the Electric Light Company was
9l'1O0ooo and we have on hand now in these stocks
Of various companic, which have been established the
sum Of S300O,OOO. Just twice much as our capital
80 II We should declare dividend now it would be
one ~ 200 per cent.
" II IS true, as Mr. Frank declares, that this sum
has not been divided among the stockholders and that
no dividends have been paid recently. About this
fact have only to say that exactly 091OO Of tie
stockholders have approved this and Mr. Frank
belongs o tho minority, who hold 1100 Of the stock
and object to th,
There are many why this has been
pursued, which it IS not necessary 10 mention The
stocks all paying good dividends some Of them as
high as 20 per cent and many Of them would sell to
day at double their par value Mr.. Frank only has
thirty thirty three sarcs Of stock al par value 0t
5000 or $1,000. For long time did not know
who he was or where he was 10 DO found. His namo
Al Al. At. 41t... tba
c0mpanys books old and incorrect one. 50 that
the circular, which were sent out when the cosolld
tlon with the Edison General Electric Company was
proposed did not reach him.
a broker from Mr. Frank came to me one day and
wanted a. In pect the books, OF course refused 10 allow
him % do 80, because corporation Is not bound t. allow
an outsider to inspect It's books. The next we heard
from Mr. Frank this suit OF course we do not
caro- anything about the matter. II Mr. Frank does moi
want to Join the nluetynuc out Of 100 OF the
stockholders In the consolidation. he is at liberty to
do a. he and the others Of this small minority wish
The point Is Just herc The Edison Electric Light
Company Of itself practically does nothing IL Is
with the aid Of these other companies that 1t has
bein able 10 make such large profits. When tho
Edison General Electrical Company came forward and
offered to give the stockholders Of tho Edison Electric
Lisht Company 800 in the stock Of the former
company bearing eight per cent interest, Tor each
sharo 81 the par value Of 800 Of tho Electric L2h'
Company most II The stockholders Of the htter com
pany jumped tho chance At this ratio 1t VIII easily
be sern that they Will receive yearly income oi
about 20 Der cont on their original Investment.
A, / said before ! think that Mr.. Frank Is labor.
Ink under "A misapprchcnS0n. | suspect, although
Will not make positive statement 10 that elect ina,
Mr. Frank might have bought tho stock whcn IL
way up. At time It sold a. 1850 share.
the par value " which 800. Ihel IL dropped 10
so a Share and then gradually Increased
IL Is possible that Mr.. Frank NAV haVo
used the stock collateral for loan
when It was high and that the broker has more 20
do with the present suit than any one else. Az any
rate there viii be- no receiver appointed lheec is no
doubt of that oil, M . 49,. ,
II Mr. Frank would come 70 tho once OF INC com,
panv auv day ne could learn ali about lts auaEs anu
Inspect the book, his hearts content inc ooJccO
In consolidating the companies was To reduce the eN
pcnscs to "a minimum, there was rraly no u" Vi
containing the existence ~ the Electric LIEht Com
pany with the expense ~ separate set of oncets c
When this suit comes mp In court all these Things VIII
bc explained and there will probably be no trouoe.
1t would be strange at any rate. II S0'looths OF tno
stockholders OF "a corporation could Hot run 'o ou'o'
rs they tlOught proper.