New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-02-07
WILL Buy OUT HIS ASSOCIATES.

HOW J. EDWARD ADDICKs INTENDS TO SETTLE
a BUSINESS DISPUTE.
Perth Amboy ~ J.. Fen. (Specian.--J. Edward
Addicks is in trouble With his associates In the
Staten Island Clay Company. He was the prin-
cipal owner of the Staten Island Terra Gotta Lum-
Der Company. which ne and Erastus Wiman or
gan.zed about fifteen years ago. and when the
company failed In March. 1895. Mr.. Addicks was
made receiver. with John v Bacot, Of the firm OF
Bacot & Record. JERSEY City lawyers.
AT FIRST Mr.. Addcks welcomed the receivership.
AZ it would apparently enable him TO get rid OF
some Of the smaller stockholders and TO hold the
creditors at bay. The recevershp continued more
than two years, during the greater part Of which
Mr. Bacot and Mr.. Addicks disagreed as 10 the
policy 10 be pursued In managing the works
This led the termination OF the receivership on
an order from Chancellor McCill. In order 20 pro-
tcct his possessions Mr. Addicks formed the Staten
Island Clay ompany and bought the plant OF the
old concern at Spa Springs near Perth Amboy
Before the Court sanctioned the sale It exacted
from Mr. Addicks bond that the other creditors
would he paid. This Mr. Addicks objected 10. but
he finally compromised by settling the claims OF
some OF the banks which held paper % the defunct
company and certificates issued by the receivers
and admitting representatives OF these creditors 10
his company II arranged that while Mt.
Addicks owned all bat ten shares OF the Cay COM
pany's stock and all but onc-seyenth OF its issue
OF $4,000 o, bonds the management of the affairs
OF the company should be left with board OF di-
rectors OF seven members. 81 whom the minority
should appoint five. The president TO be an
Addcks man, and Charles -. Thompson. attorney
for Mr.. Addicks. was chosen as president Ernest
Merrick. manager under the receivers. made
manager. This arrangement was not TO be changed
for three years and should continue until
claims of the stockholders represented by the ma
jority OF the directors should %. paid.
Last June fire broke out IN the works and did
about $4,000 damage. The Insurance companies re-
Gently paid the claims. and it was over the dispos
ton of this money that Mr.. Addicks and his as
sociates disagreed. Mr.. Addicks published In the
Ncw-York and Philadelphia papers last week a
warning to all persons not 10 accept any contract
agreement. note check or evidence OF indebtedness
issued by the Staten Island Clay Company unless
signed by President Thompson
In reply 10 this warning Mr.. Merr.ck the man
ager said to-day that Mr.. AddCks was respons bile
for the failure Of the old Staten Island company
and TO him due tho failure OF the recevership
He outlined the forma don Of the company
and said that any attempt by Mr.. Add!cks TO de-
part from the agreement entered into would be Bit
terly fought by the rest OF the company.
Mr. Merrck said also that II Mr. Addcks will pay
the old debts he can have the control OF the bust
ness and interests OF the present COMPANY II is
understood that Mr. Addicks contempates buying
out his associates.
II IS estimated that the plant here is worth about
10000, although more than three times thal
amount has been expended on II. When II is work
ing in all Of Its departments more than six hundred
men are employed.