The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-06-30
RECORD OF ALCER.
Never Owned Any Stock in the Match
Trust,
BUT HE HELPED ORGANIZE 1T
And Received Part Of the Profits Of
the Combine.
THE COURT RECORDS TO PROVE 1T.
A New Cure for Germ Diseases Is BEING
Experimental WITH
TO SUPERSEDs THE SERUM TREATMENT
IT Is Similar in some Respects,
but the Basic Principle Is
Not the same.
THE COURT RECORDS TO PROVE IT,
A New Cure for Germ Diseases Is BEING
Experimental With.
10 sUpERsEDs THE SERUM TREATMENT
IT Is Similar In Some Respects
but the Basic Principle Is
Not the same.
Special to The Post }

Noenin6lou, June 1y.--lne correspond
ent of the New York Herald wires his
paper the following concerning Ayers at
titude toward the trusts:
Secretary Alger's declaration that he
never owned stock in the Diamond Match
company is technically correct, but he was
largely interested in the company and took
an active part in its organization, as shown
by the record of the case of David NJ.
Richardson against Christian II. Bull
and Russell a. Alger, which was decided
in the Michigan supreme court ten years
ago. Richardson brought suit to restrain
Messrs. Bull and Alger from selling
stock in the Diamond Match company,
held BY them as security. In the lower
courts the defendants were directed TO
restore the stock to Richardson and pay
him a balance of $S5, 2l9.25. In the SUI
preme court the decree was reversed and
the case dismissed.
Chief Justice Sherwood in announc-
complete history OF the transactions which
led up to the suit. He showed that in
1879 Richardson owned or controlled all
the stock OF the Richardson Match com
pany located in Detroit. The plant had
been idle for sixteen months. The cap
ital of the company was $4,000 divided
into 5000 shares. On representations to
Bull as 10 tue earning capacity of the
plant, Messsrs. Bull and AlgerJ became
security for Richardson on his bond TO the
government for $4,000. and Endorsed the
commercial paper OF the company to the
amount Of about $4,000. As security
they received 1890 shares of the stock of
the Richardson company under e con-
tract, giving them a right to vote at all
meetings of stockholders, and to receive
dividends on their stock and to retain
the same with the exception OF one-sixth,
which they were to pay TO Richardson
The 1900 shares gave Messrs. Buhl and
Alger control of the company, and enc
half of the dividends or profits earned
The company was reorganized with Mr..
Alger as president and a director. The
other directors We're Mr.. Bull, two OF
his sons and Mr.. Richardson. The MA
mond Match company was organized on
| December g. 1885, under the laws o. Con.
necticut, "for the purpose of uniting In
one corporation all the match menu,ac-
tories of the United States It's object was
| to control the business OF making all the
| friction matches in the CO rlry .1d
establish the price thereof" Its capital
stock amounted t. 81, 50,00I divided into
| III, 100000 common stock and SCOT, OOn pre-
| ferred stock. The Richardson compan,
was taken into Tie Diamond Ma.ch COM
pany, giving bond in the amount of 500
600 not to engage in the manufacture OF
matches In competition with The Diamond
| company for twenty years. The Richard
son company was put in at a valuation OF
| $3.50 900 in common stock in TIC DiaE,ond
company, and Richardson subscribed Cor
$4,000 of the preferred stock To enable
| him to do this Messrs. Alger and Bull ad-
! vanced the necessary money, and received
as security all except fifty shares of the
common stock issued to Richardson. An
agreement was drawn up and signed by
| Richardson Alger and Bull covering this
| disposition OF the stock, and providing for
! the distribution of the profits among them
/ Tho issue in the case was the proper con-
strubt!on of this agreement or contract
and the four judges sitting in the case
! united In the decision that Richardson
was not entitled to the relief he sought
although they arrived at the conclusion
| in a different way. Justice Champlin. In
his opinion, concurred in by Justice Camp
bell. Ia reviewing the testimony brought
out Secretary Ayers connection with the
Diamond Match company in strong light.
Dr. Oscar Loew one Of the expert vege-
| table Psychologists of the agricultural de-
partment, has developed to what he be-
J lieves practical use treatment for germ