The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-01-07
An Arrest Growing Out of
Dredging Shares.
SLAvEN ACCUSED OF FELONY.
1t Is Thought That the Case May Lead
Up to Some Sensational
Developments.

tional opening of what promises to become
one of the most celebrated cases ever tried
In California.
| 1t is also quite probable that Mr.. Hunt
ington's supposed opposition to the Nicara-
| qua canal scheme will be exposed as being
| insincere, and that the Southern Pacific
| Company not only favors the canal but is
also anxious to have a voice In its control.
incidentally the fight between the Panama
| Railroad and the Pacific Mail Steamship
Company may also cut figure in this trial.
so that Slaven's arrest may be considered a
very important one, although he was inme-
| diately released On giving bond in the
sum of only $1,000.
The complainant in the case is II. C..
/ ChesebTough, of the firm Of Hanson d Co.,
! lumber-dealers, and Philip q. Cabin is his
attorney.
Cnesebrough asserts in his complaint that
| Slaven has attempted TO bride witnesses to
| he used in the case of Charles Hanson VS..
| Henry b. Slaven of the American Contract
ing and Dredging Company Of New York.
The specific charge made is that on
| November -. 1890, Isaac Slaven tried to
| bride X. l.. Mattingly, contractor, TO be-
| come a witness in the case aud 10 testify
that he had heard the said Hanson say in
| conversation that he refused to pay any
money on account Of the purchase of any
|
! and Dredging Company by him, said Han
| son. heretofore purchased Of said Slaven,
| or TO advance moneys to said Henry b..
Saven on account Of any business Of said
| Henry B. Slaven."
Msttingly never testified at all. but the
| complaint against Slaven states that had
| he done as the latter requested him TO DO,
| his testimony would have been false.
| The Criminal Code makes the attempt to
| procure false testimony felony whether 1t
| Is successful or not.
| However. those acquainted with the facts
state that Isaac Slaven's arrest was not
| brought about solely for the purpose of
+ prosecuting him personally. but that the
| real cause of ii IS that Charles Hanson
wishes to have his case against II. b.
| Slaven once more into court, so as to bring
| out sen sational developments.
The Hanson-Slayen case is a claim of the
| former for 1000 shares of the dredging conf
| pany's stock, which he asserts he had q
right 10 buy under All option at $50 share.
! In default of the delivery of the stock
| Hanson claims to be entitled to S1,270000
| damages.
The case is an old one and has been before
| Judge Levy of the Superior Court, who sus-
tanned demurrer to the complaint. which
was then amended. and jury trial was de-
msnded and had before Judge CARRIER in
November. 1890, which resulted in Hanson
being n0nsuted.
before the Supreme Court.
The history of the American Dredging
and Contracting Company is that of one OF
the most remarkable and most successful en-
prSes Of that kind ever undertaken.
Ii is said that during the three years it
was in active operation 10 has netted the
promoters over Sl5.000,000. and Henry b.
SlaveD, former druggist OF this city, by a
series OF mani ulatiOns and circumstances
became almost the sole possessor of all the
shares Of the company.
The actual founder OF the corporation was
o. 7. Bell, New York business agent who
filed the original papers in New York City
In 1882.
Bell was. however. only the representa-
tive of III. B Slaven, NJ. A. Slaven, his
brother (sncs deceased. Ii. III. Lynch NOW
superintendent of The POwel-sireet road
and Prosper Huerne. who died in this city
few months ago.
Huerne was an old school friend of De
Lesseps, and therefore when the Slayens
co ceived the idea of becoming bidders for
the Panama Canal dredging they considered
that he would be useful partner.
They proved 10 be right IN this, for il was
Rnerne's influence with De Lesseps which
sm0othed the way for the company, so that
it obtained The only dredging contract ever
let by the Panama Canal Company.
Lynch was taken 10 as a partner by the
Slavens on account OF his practical knowl-
edge in dredging. and that they made
wise choice In selecting him was proved
later. when he devised the plan which
made that dredging contract so Immensely
TemuneratiVe.
TIE Slavens owned $1,000 shares out of
total capital stock OF $4,000 shares. but they
were not satisfied with having to share even
part OF the profits with others, and so they
managed to freeze lynch and Huerne out
in some manner, paying them after q series
of lawsuits 100000 by way of compro-
mise.
The original interest of Lynch and Huerne
was 1000 shares each, and at the time the
compromise was made these 1000 shares
were worth fully million.
Lloyd Teyis, William +. Coleman, NJ. It's
dale. Charles Hanson, Joost Brothers and
Joseph A. DonOhoe also owned stock in the
dredging company, but tile Slavens secured
nearly all of II. and Tisdale. Dono hoe and
the Joost Brothers were the only holders
of small blocks OF this stock besides Fl. b.
Slaven, who owned all the rest.
All the machinery, material and parapher-
MALTA formerly belonging 10 the company has
been turned over to the Nicaragua Canal
Construction Company by Saven, who is
one IF the promoters and directors of the
latter concern, besides being large share
holder.
He is the uncle of the Isaac Slaven ar
rested yesterday, who is his Pacific Coast
agent.
The prosecutors of the nephew hope
through him to be able TO expose the uncle's
Panama canal transactions, which. IL Is
claimed, were Of decidedly peculiar ma
ture.
Its said that q. B. Slaven is in hiding at an
obscure watering place in one of the South
ern States because he is anxious to avoid
being questioned on the French Panama
canal scandals.
Just before the great expose was made in
Paris Slaven Is reported as having planned
81 -. 49, -. ~ =
with his friends, Dr. Herr, De Lesseps and
others, but subsequent events caused him to
change his mlnd and he now does not con-
slider the climate of the gay metropolis good
fur his health.
A great popularity in connection with the
Slayen sensation Is the supposed Southern
Paclfic's connection with the case.
Stilman, Butler and Hubbafd, who are
directors of the Southern Pacific Company.
are Ii. b. Slaven's New York attorneys. and
when SIaven came to San Francisco In 1890 to
testify In cult brought against him by
Charles Z. Terrlli, contractor aud builder,
who had claim similar to Hanson's, Creed
Raymond, the Southern Pacific attorney
acted for him.
The New York attorneys thought it
wise to ask Raymond to represent their
client SO as to throw the railroad influence
against Terrill and later on Hanson.
The Terrll case was compromised in july
1891. for $500 600, the mediator being a we'll
known lobbyist, who has often acted in a
similar capacity for the Southern Pacific
Company, and whose name was mentioned
when the Grand Jury investigated the
legislative scandals recently.
People who are given to forming conclu-
sions can now figure cut why c. p. Hunt
ington, who has always said he was ou-
posed 10 the Nicaragua canal project, allows
his employees to work in the interest of III.
b. Slaven. one of the directors Of that enter
prise.
When the Isaac Slaven case comes to
trial, that is If it ever does, it will perhaps
be shown what Huntngton's motives In
favoring Slaven are. and why the former
has changed his mind about the Nicaragua
canal.
1t may be that the recent trouble between
the Pacific Mail Company and the Panama
Railroad Company had something to do
with influencing Huntington, or he NAV