The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-02-08
ZINC TRUSTS TROUBLES
Injunction to Restrain it From
Gobbling Up Smaller
Concerns.

The effort to break up the great Zinc
Trust was begun in the Court of Cham
Gerry this morning before Vice Chancel-
lor Pitney, when counsel for William T.
Meredith of Morristown asked for an in
junction to prevent the great New Jersey
Zinc and Iron Company from buying up
certain zinc companies in Pennsylvania
Wisconsin. New Mexico, Ohio and New
York.
The cause of the trouble was a. notice Is
sued to the stockholders, of which Mr..
Meredith is one, on January 8, 1897, to
the effect that to obviate the difficulties
which have embarrassed the trusts oper-
ations, 1T us advisable to purchase all con-
fiicting interests in the Mine Hill prop
erty in Sussex county, as well as some
other properties and manufacturing
plants necessary to the proper exploita-
ton of your companys business
The last sentence is the cause of Mr.
Meredith's opposition. He wants to
know what this ''exploitation" is and
what Is its nature
1t seems from the bill filed for am M
junction that the trust had already en-
tered into an agreement for an increase
of the capital stock to 50. .93S, 900, being an
increase of 1928, 400 over it's present capt.
tai Further. the company had provided
for an issue of first mortgage 5 per cent
tWenty-year gold bonds not to exceed
81, 100000, for which to make additional
payments in cash and provide funds for
proposed improvements
Now Mr.. Meredith complained that the
proposed transaction was unwise, and
that the information of the officers con-
cern1ng the scheme was meagre. and the
tha thheetlng IN Newark on January 80, when
Illegal, there being protest from large
portion of the stockholders in opposi-
ent this morning. Judge Dillon. counsel
LOT the late Jay Gould; Judge joseph
Coult and Judge Howell, of Newark. were
LOT Toh,, tne plaintiff, Mr.. Meredith Mr.
9oilil Z. -SadWaIader, of New York, and
r. Y, Lndabury, of Newark, represented
the Zinc Trust - :
Judge Howell opened the case by read
ing the Pill He said that Mr. Meredith
e1na oMneu isa shares of the par value of
SiVo each share, and his wife, Sarah q.
meredith owns 1876 shares representing
JOINT interest of $39, 100. The company.
ne SAID, did business at Franklin Mills,
sussex sussex county, and was very successful,
paying during the past ten years large
dividends averaging 10 per cent. The
company had no mortgages, and its busi-
ness prospects We're exceedingly bright.
SSouiisel S',.i then came to the proposition to
puy more plant and increase its capftaI
STOCK three millions of dollars at the
meeting held in Chapel street Newark.
Counsel said the agreement was rushed
tnrough without allowing Mr.. Meredith
an opportunity to study the agreement.
Wnlcn covered twenty-four pages of type
written matter, and needed time to con-
slider. The officials would not give him
an opportunity to understand the propo-
sition. Mr.. Meredith protested but to no
avail. He did not vote for his wife be-
cause he was not her proxy
counsel, continuing. complained that
the Leh1gh Zinc Company and other
companies proposed to be purchased were
foreign corporations and outside the in
rlsdiction of the courts of New Jersey.
lie further showed that such a chance
couid not pc done unless all the stock
holders voted on it, and the oomnanv
had no right by it's charter to mortga sra
ITS property for nearly $1,000 600 to take
up other. concerns in not such a success
ful financial condition, and the sale is
liiegaI ana void The only power, con-
sweeping change in it's charter is the
Legislature of New Jersey. 1t would in
validate its charter and render it liable
to an attack by the Attorney General.
You set uD, then, that it creates a
monopoly?" asked Vice Chancellor >Pit-
ney.
Yes, sir" replied Judge Howell.
Counsellor r. V. Lindabury, for the COM
but am affidavit
Judge Coult objected to the affidavit
when no answer was filed, but the Court
allowed it in a summary proceeding like
this.
Mr.: Lindabury read then the affidavit of
Stephen w. Palmer of Newark, President
OF the Zinc Company. Mr. Palmer recited
the long litigation through which the COM
pany had gone with the Lehigh
Zinc Company in relation to the Mine Hill
tracks, but counsel was Interrupted by the
Vice-C Chancellor who, seizing two large
copies of the revision, explained the diff
Guilty Of the Frank1inite and Zinc ores at
the Mine Hill and said that he had been
retained by the Zinc Company just before
he retired from athe bar
I'm Short" said Vice Chancellor Pitney
your affidavit shows that your Company
had settled all it's difficulties yith the Lee
high Company Now, l want to hear you
on the proposed extension of the stock
and plant"
Counsellor Lindabury, in reply, said at
tho outset that every step taken by the
officers and majority Of the stockholders
was legal, and with due regard to the in
terests of all parties. An adjournment
was taken at noon.