The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1900-02-27

Previous TO January, 1900, the board
Of directors Of the coke company was
composed Of ave members. Upon that
date, at a meeting Of the stockholders
Of the company, the membership Of the
board was Increased to seven, and
Thomas Lynch, h c, Frick George
Lauder, James Gayley, Andrew M.
Moreland, D. N. Clemson and Thomas
Morrison elected members. They now
compose the board OF directors OF tho
coke company. Lauder, eayiay. More
land, Clemson and Morrison being also
members Of the board Of managers OF
the steel company.
Prior to January ., 1900, It stated that
neither Gayiey. Bforeiana, Clemson nor
Morrison were owners Of any stock OF
the coke company, and were interested
therein only by virtue Of their interests
in the steel company About said date
there was transferred out Of the shares
Of the coke company held by the steel
company flve shares OF the coke COM
pany.s capital stock to the four defen-
dants named. These shares, It IS as
serted, are stlll the property Of the steel
company and the transfers we're made
at the dictation Of the steel company
and Carnegie for the purpose Of quail
flying them as directors. It is asserted
that they were so placed to manage the
coke company in the Interest OF the
steel company and Carnegie, and mot
for the interest of the other stoekhold ,
ers Of the coke company, who were not
members Of the steel company. and es-
peclally so that the product Of the coke
company might be sold at prices far
below the fair value of any,market price
thereof. so as to beueft the steel COM
pany at the expense Of the coke COM
pany; ca-negie's Interest being much
greater in the steel company
During the year 1899 the coke com
pany furnished the steel company with
ali it's coke. While the market price OF
coke steadily advanced, coke was sold
to the steel company at prices ranging
from 81 I5 a ton for January, February
and March, 1889, to 81 10 a ton for De
cember, 1893. The shipments being q
2ss 764 tons, all of which has been paid
for.
Done Up to the Queens Taste.
To carry out the purpose for which
they were selected, and to secure Tor
themselves and Carnegie an advantage
as members OF the steel company, 1t is
claimed that, knowing OF the loss which
would result to stockholders Of the coke
company who were not members OF the
steel company, or whose prcportiOnate
interests in the coke company were
greater than in the steel company, and
IN utter aud fraudulent disregard ot
their rights and against the vote and
protest Of Thomas Lynch and II. g
Friel. the, other two members OF tpe
board OF directors, and well knowing
that the price OF coke then was up
wards Of s. a ton, and that the market
price would, probably. continue during
the life Of the contract hereinafter
mentioned TO be much greater than the
price named In the contract, the major
ity of the directors Of the coke COM
pany, to wilt, Gayley. Moreland. Glenn
son ana Morrison. on January "a, 1900
at meeting Of the directors OF the coke
company, pretending that more than a
year prevloEsly thereto the coke com
pany had contracted to sell to the steel
company all the coke that the steel
company might require for It's furnaces
for period Of five years, beginning
January !, 1893, at the price OF 81 80 a
ton. voted TO the steel company con-
tract for all the coke 1t would ues fol
fve years commencing january !. 1898
amounting, approximately. to 2'6OO'V0'
tons n year, or about one-third OF the
entire product Of the coke company at
the price OF 81 IS a ton. The persons
named. It is stated. produced at the
meeting and demanded and produced
the immediate signing by the president
of the coke company, OF CONTRACT
which had been previously prepared
and executed by the steel company
The plaintiffs charge that. in truth
and in fart, no such agreement to sell
It's products to the steel company as Is
pretended rs the excuse for making
saId contract, and no agreement what
speyer for deliveries through a period
OF years or at the price named in the
pretended contract WIS At any timp
made by the coke company, or by any
one authorized to act on It's behalf. and
the pretenSe thereof is only the creation
of Moreland, Gayley. Clemson and Nor
rlson. with Carnegie and Lauder nctinE
N the interest of Carnegie and the steel
company. and they so made said con-
tract only for the benefit OF said Car
negie and themselves as members Of tbs
steel company and In bad faith to the
interest OF all other stockholders of the
coke company, and the directors voting
for the contract violated the usages oil
the business and exceeded their author
ity as directors.
Injunction WIN Be Asked For.
WINS F. Mccooh, Of the counsel fol
the coke company, said tonight that
while the bill asks for an Injunction
this point Will not be insisted upon until
the case goes to fiuai hearing. The
coke company win continue furnishing
coke to the steel company as at pres
ent until the contest Is decided when an
adjustment will be made. This win In
sure the steel company It's required sup