Evening journal., 1892-04-30
FIDELITY IN THE SADDLE.
II Charges CollusiOn and Mi mana ge-
ment Against Wilmington Men.

the Mcdaniel and Harvey Company
Charged with Trying to swamp a PhiIa-
deiphiA Firm.
The business complications arising
from the death Of Delaplaine Mcdaniel
are showing themselves every few weeks.
The latest sensation is the action Of the
Fidelity Insurance, Trust and Safe De-
posit Company. trustee nder the will Of
Mr., Mcdaniel In fling bill in equity In
Common Pleas Court No. 2, In PhllAdel-
phla, sgsinst the Mcdaniel and Harvey
Company, the metal concern at Sixteenth
street and Washington avenue, In that
city. The bill charges mismaHage nent
and collusion.
The bill sets out that the capital stock
of the Mcdaniel and Harvey Company
amounts to $3.50, 900, divided into 800
shares Of the pai value of 800 each
The Trust Company as trustee holds 334
shares, and the heaviest OF the other
stockholders are r. A Harvey OF Will
mington. 4l2 shares j L. Nc Daniel Of Phil
sdelphia, $50 shares; and Enoch McCul-
/ Tough. Liberty Grove Nd. holds l15shares
J. w. Mccullough Of Colora, Nd holds
80 shares; J. w. Mccullough. Wilmiag-
ton, holds SO shares. s. ID Mccullough.
/ North East. Md, sc shares; }. L McCul-
Tough. Rising Sun, Md. SO shares. II then
alleges that the defendant company is
chiefly eugsged In purchasing sheet iron
and galvanizlng and selling the same.
and that it also acts as selling agent for
Harveys patent clean sheet iron, manu-
factured by the Mccullough Iron Com
pany. P .ior TO the death of Delaplaine
Mcdaniel, In 1885. the business OF the
defendant company was prosperous and
well managed, but for several years past
the profits OF the business have been
greatly reduced; that In 1887 the com
pAny's profits were $33, 1927 07, while In
1883 they only amounted to 81, 953 46: In
1889 the business was conducted at loss
OF $67. 1886 Is, and In 1891 at loss OF
$27, 435 92 The Trust Company further
states that the defendant company has
been acting In collusion with the Nc
Cullough Iron Company of Delaware and
Maryland, the defendant corporation
helping to boost up the Mccullough Iron
Company, which is insolveht; that the
Mccullough Iron Company manufae
lures Harvey's patent clean sheet iron,
made by charcoal, and that 10 sells this
iron to the defendant company, the CAPT
tai stock Of both companies being held
by practically the same persons; that
owing TO the change In the iron market
sheet steel has taken the place of sheet
iron, and that the insolvency OF the
Mccullough Iron Company resulted
from i.s persistency in continuing the
manufacture OF charcoal non when sheet
steel was cheaper, while the manage
ment Of the Mcdaniel & Harvey Company
3 persisted in the disastrous policy o.
buying and galvsnizing this charcoa
iron aud attempting to sell it In compe.
tition with corporations using galvRn.
, lied sheet steel that in order u h0ost NJ
! the affairs of the Mccullough Iron Com
y psny the defendant company made
fraudulent allowance in 1889 Of $4S
4OS. "a to the Mccullough Iron Company
apparently TO adjust and equalzs the In
debteduess between the companies but
h in point Of fact, 10 cover the cost o
manufacture OF the iron.
Afterwards this sum was retransferre
e to the defendantant company, but 10 /
alleged thai the amount is about to b
n retransferred to the Mccullough Com
pany. The complainant as trustet
,. formerly held 1909 shares Of the MoCu
lough Iron Company stock. but recent
sold the stock on basis Of valuation o
the Mccullough Companys assets. mad
h without considering the $4S 40S "a, an
s now the Trust Company alleges chat tn
retransfer Of the s4s. 40S "a to the Nc
n Cullough Company will thus make q dii
" ference IN value of the stock so so o
$40 757 40, the shares having been s5l
for s39 33 each.
n The complaint alleges that the losse
y OF the Mcdaniel and Harvey Compan
are all due TO the persistency OF II
Df officers in taking the Mccullough Goa
e. pany's sheet iron and selling IL in com
petition with sh e. STEEL which
m cheaper; that the Mcdaniel and Harve
~ Compsny's persistency in pursuing th
policy is for the fraudulent purpose ,
improperly sustaining the McCulloug
le Company aud bolstering up its affair
, and that the efforts Of the complainaI
as trustee to have the policy change
le have been dsregsrded and remain nj
ri noticed by the officers of the McDani
Or and Harvey Company.
It is also alleged that. during 1S9
80 defendant company made some S2O,0
= profit by gslvanizing pipe and odd VOL
~ aside from the sheet iron, but that th
profit WAS swallowed in the losses fro
the purchases Of the Mccullough Cor
Of psny's sheet iron; that the board
e. directors OF the Mccullough CompaI
D. | nave Clthttu new anu unnecessary NluG
y. and increased the sAlsry OF its officer
~ aud that. in spite OF an Indebtedness
"a S17.4l9 20 to the defendant compap
n the Mccullough Company has procur
n the defendant company's note for $40, O
and had II discounted
=, n view Of these facta the court
~ asked to order ap accounting, and
grant an injunction restraining &
S Mcdaniel and harvey Company from
'N transferring to the Mccullough compsi
the f4s. 40S "a, or from lending the N
N Cullough Company any moneys whats
it ever.
We h. A. HARVEY REFUSES TO TALK.
er A reporter called at +. A. Hsrve,
residence Et Tenth and jefferson, stree
Of today. Mr.. Harvey refused
,ct talk and requested the report
so to call on President Whiteley H. Phil
an delphia As the reporter had alrea
been TO the works a. the foot Of Seven
street and felt little fatigued be
re re not feel able to take such a pedesJri
trin on such short notice.
nc. II your spouts and cutters are burst
lay James F. Wood & Co., will repair th'
Front and Orange streets.
ms They Can Sign Their Names.
r.. xNrL., -, E,yu,rr,cc IoupNAr ranor