The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-06-28


man to be filling the space he does in
the public prints of the day, and had it
not been for some twist in Hanna's ante
convention schemes of 1896. Mr.. AIger
would be shaving notes in Michigan in
stead of taking up good time of news
paper readers with his doings and misdo-
ings and going-to-doings. The latest
presentation Of the best secretary of
war the country ever had," as that re-
markable Philippine bungler, Gen. Mer-
rift. dubbed him, is as candidate for
United States senator from Michigan on
an antitrust platform. Immediately
there rose the old story of the Richard
son Match company, its merger in the
Diamond Match trust and Ayers con-
nection with both. The secretary evil
IDENTIFY regarded the ghost as one to be
laid, and he proceeded to embalm it In
an interview, printed as a special in
morning paper. .'WiL you tell me"
asked the reporter, whom the secretary
called in for an interview, eff you were
ever connected with the Diamond Match
company" mo, SIR responded the
cashiered colonel, ST never owned a dol
lar Of stock, nor was 1 ever connected
in any way with that corporation" And
then he went on to tell how he and his
bank partner had a deal with Richard
son. who owned a match factory: how
they loaned him $4,000 bank credit, and
how they made a profit of $4,000 be
tween US" in two years. What he does
not tell is the most interesting portion
of the story, the full details of which
may be found in the Michigan supreme
court reports in the case of Richardson
VS.. Bull ct al.-Alger being the ct al
from which the pair seem to have let
al"
In 1879 the Richardson Match com
pany, of Detroit. was stocked at SIS, 900
in 5000 shares, of which Richardson was
the owner. Alger and Bull agreed to
become security for Richardson on his
bond to the government for $4,000 and
to indorse his paper for $4,000 AS Sc
curity and in consideration of the credit
Richardson transferred 1900 shares of
stock, and agreed to let Alger and Bull
have half the profits. The company was
reorganized, Alger made president and
the Bulls directors. This agreement held
two years, during which the profits
were $29, 675. of which Alger and Bull got
half, although they had not paid a cent
on account of the guaranty or indorse-
ments. At this time the Diamond Match
promoter came along and proposed to
take in the Richardson factory Alger,
1t must be remembered. was president of
the latter. He assented to the agree
ment Richardson put in his factory at
$4,000 paid for in common stock He
also wanted to buy $4,000 of the pre-
ferred new agreement was made be-
tween Richardson and Alger. Bull and
Alger were to indorse Richardson's pa
per for enough to pay for the preferred
stock, and, after putting up 10000 of com
mon as collateral to a mortgage to an
insurance company, the remainder was to
be assigned to Bull and Alger as Sc
eurity for their Endorsement of his notes
TO the Diamond Match company, and
also as security for the payment to them
of half of the profits that might accrue
to the Diamond Match stock.
The deal was made Alger, president of
the Richardson company, executing the
transfer of the plant to the match trust.
and receiving, with Bull, half the divi-
dends declared upon it. At the time the
suit was brought, in 1883, by Richardson
to recover some $25, 900 received by Alger
and Bull more than their half of the
profits, the Richardson stock in the trust
had earned $114,O00, making, with the
profits prior to the sale, $143,675, less
$9.609 paid as interest on the mortgage
and notes. Alger and Bull had not paid
cent on account of their liabilities as
sumed for Richardson, but raked off
over $4,000 of Diamond Match trust divi-
dends and subsequently received some
$4,000 more, to recover which Richardson
brought his suit.
The court threw Richardson out Of
court on the ground that the Diamond
Match company was formed to create a
monopoly; that the contract with Alger
and Bull was an agreement to partici7
pate in that monopoly. and that the con-