New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-09-10
ATTACK ON A GREAT TRUST.
aN EFFORT TO BREAK UP THE WALL
PAPER COMBINATION
r. IS CHARGED By A DISSATISFIED MEMBER OF
TIE TRUST THAT THE saoooooco STOCK
REPRESENTS ONLY GOOD WILL AND
THAT 1T HAS BEEN UNPROFTTABLE-
THESE ALLEGATIONS DENIED.


THAT IT HAS BEEN UNPRoFITABLE-
THESE ALLEGATIONS DENIED.
.,hanv Sept 9-The affairs Of the National
o.u paper Company received attention at the
hands Of Deputy Attorney-General Gilbert d.
usshrouck this afternoon on application for Its
aissolution The company represents a combina-
,,on OF thirty-eght wallpaper manufactures
,hrourhou; the United States which was formed
IN July. 1892 with capital of s3o,00O.o0O common
stock and IS O00o 900 debentures
Edwin NJ Shepard, Of Brooklyn. appeared be-
fore the Deputy Attorney-General to-day at 3
o'clock. and asked that the Attorney-Generars
o,nce bring an action TO dissolve the corporation
lie asserted that the $50 100000 was issued on the
strength Of the good will Of the concerns which
were consolidated. which was in violation Of the
state statutes declaring that capital stock could
only be issued for cash or an equivalent value In
property. He held that the property OF the com
many would be about exhausted II the debentures
were paid. in case the company should dissolve
He declared that the company had no right to
psy interest on the deoentures. except out Of the
earnings Of the company
He represented the firm Of II. y. Washburn q
Co. Of Philadelphia. which had Joined the COM
bination The firm wanted 10 secure its plant and
carry on its own business as II believed the Ma
t,onal Wall Paper Company had not made any
money since its organization.
Louis Marshall. Of New-York, appeared for the
National Wall Paper Company and denied Mr.
shepard's statements He said the control OF
the Washburn mill had been taken. for good rea-
sons from the firm. and that now the Arm wanted
10 have the company dissolved in an endeavor TO
get back the property. for which 1t held 81 100000
OF the common stock Of the company. in addition
70 the pro rata share Of the debentures.
He said that the common stock represented the
tangible property Of the consolidated manufac-
toes as well as their good Will and that the capi-
tal stock was issued in accordance with the stat
utes He declared that there were no reasons
why such an application as this should be enter
talned II this companys scheme Of capitaliza-
ZION was forbidden. the Attorney Generals Of
Gee would be kept busy winding up the affairs
OF $50 other large corporations similarly organ
ized.
He asked on what the issue OF the stock OF the
Sugar Trust which represented by the firm
70 which Mr. Shepard belongs was based. Mr..
Shepard said this could be seen easily by passing
along the East River where view could be had
OF the immense sugar refneries In operation
there Mr. Marshall said this was also true OF the
National Wall Paper Company which had manu-
factories scattered all over the United States. He
continued:
!, comes with poor grace FOR a firm that has
defended the Sugar Trust to come here and hold up
its hands in holy horror az the organization Of
the National Wall Paper Company. The Attorney
General will remember that when he started TO
prosecute the Sugar Trust some time ago for vio-
fatjou Of New-York state laws. the company
sneaked over into the State of New-Jersey and
incorporated thus escaping this States juris-
diction
Nj shepard-Our firm does not desire to keep
any clients at the expense OF the enforcement OF
State laws Mr.. Marshall cannot show a single
instance where capital stock has been issued for
good will as a basis.
Mr Marshall-Such Is not the with COM
rany the capital issued representing both the tan
glbe property and the good will Of the many
manufactures forming 1t.
The Deputy Attorney-Genera closed the hear
ing after three hours OF argument giving each
side ten days within which to file briefs.