New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-10-19
A RECEIVER ASKED FOR.
STOCKHOLDERS OF THE AMERICAN GROCERY
COMPANY AILEGE INCOMPETENT MAN
AGEMENT-PREsIDENT MARsALIs

MAKES A REPLY.
The application for a receiver for tho American
Grocery Company was heard yesterday by Chan
ccllor McC;ill, in Jersey City. The application was
made by Edgar +. Dunning and other stockholders
The petition. TO which was annexed number OF
afdavits. alleged that the company organized
In June. 1894, the of Thurber, Whyland
e. Co. and began business on July of that year
A profitable tr lde done for two years, and the
third year opened auspicousy, but Thomas H.
Marsalis president Of the company, Instituted new
methods. which delayed the filing of orders and
caused the loss Of customers and expert statesmen
who took the trade with them. The petition
charges that the president introduced economical
methods that have been expensive; that he injured
the business by moving into smaller buiidlns'
that the force of employees was reduced until the
number Is inadequate, and the stock Is becoming
depleted for want Of proper care; that he ana MS
friends have prevented the holding Of the annual
meeting for the purpose OF securing a dissolution
Of the corporation: that he permitted Vaiuaoif
trademarks TO be used by rival concerns without
compensation; that he has endeavorod 10 lhJuIe
the company. Al affidavit made by William Nj
Mosler, credit clerk of the company. corrooorates
the allegations set forth In the petition, ana de
clares that Marsalis told him that he wan'cd 10
get rid of the common and preferred stock.
Allan L. McDermott. who represented President
Marsalls read an affidavit made by his chent' IN
which he said at the time Of the transfer OF
81 10000 of the preferred stock and scocV' OF com
mon stock Of that company, the holders OF "h'ch
became entitled to receive stock In the American
Grocery Company under the plan of reorganization
An assessment Of 20 per cent was levied upon 'hs
preferred and 10 per cent upon the common STOCK
of the urber-Whyland Company. the holders OF
payment of such assessments 10 receive In en-
change for preferred stock preferred STOCK OF
the American Company and In exchange for com
mon stock common stock OF the American COM
pany share for share and in addition thereto nra.
preferred stock of the American Grocery company
to the amount OF cash paid under such asses
menl was $4,000 In addition 10 which MhlsdllH a,.a
others paid In cash about SlMVV rcCcINllS ~,
preferred stock for the same There are no" SSueu
and outstanding OF the STOCK of the American gro
Gerry Company Also shares or me mrs -,
g1s shares OF the common stock. ard in addition
to the American Grocer! t5iE 40
sued its promssoIy notes. aggreSdtlhe,
given to The creditors Of the Thurber-W, iah no
COMPANY These notes have been palu 10y tnc
American Company. The assets Of the Ihurpe1,
Whvland Company were estimated at 10000. OF
which $4,000 was for account or notes. only aoou'
SIS COO OF which was collectibe." 49,, or.
He further made the claim that IN ,n1eS w.
he had reduced the debt from s200o0 to $1,000; tina
trade.was bright If II had not been interfered WIN
that the removal to the new building, was a WIZ
one as II brought the company INTO me ceN.lo vi
the wholesale grocery business and saved N Ienla
so5 OOO a wear lie denied that he endeavoreo 70 ee
rid of the common and preferred STOCK, as no
MI McDermott also read number or "a, aind ht,
of prominprt business men. testtfyinS 10 the aoh'S
and probity OF Mr. Marssls.
The Chancellor reserved decision