The times. [volume] (Washington [D.C.]) 1897-1901, 1901-03-22
UNFAIR DEALING CHARGED
Complaints Made by Stockholders
of Local Shoe Company.
Claim They Were to He Frozen Out
by the Parent House Mt baltimore
AIIcge Unlawful Methods - opin-
ions of some of the Share Owners.

Claim They Were to He Frozen oui
by the Parent House Mt baltimore
AIIcge Unlawful Methods opin-
ions of some of the Share Owners.
Discomfort among the minority stock
holders Of the Washington Electus Shoe
Company has led to sharp criticism of the
mana cement of the concern. and to some
rather open charges of unfair dealing.
the smaller holders of stock claim that
the business was practically closed up
without their consent, and allege also that
an attempt was made to freeze them out
Of all ssible reimbursement for their
loss by conhscation of the only asset
of the company the stock of shoes, They
charge that it was the intention of those
at the head of the Washington Electus
Shoe Company, who were also interested
in the Electus Glove Button Shoe Com
pany, to remove the stock of the former
company from this city. without having
rr"ac Il proper statement to the stock
hc ders, or having had a proper meeting.
They insist that the Electus Glove But
ton Shoe Company had no right to re-
move the stock of shoes. and that the act.
which practically wipes out of existence
! the Washington Electus Shoe Company,
was an unlawful one. notwithstanding
any reimbursement, by way of exchange
of stock that the Glove Button Company
may propose to make.
The affairs of the Washington Electus
Shoe Company were wound up last June
in what was said to have been rather
stormy manner. The closing of the
| firms doors was followed by a number of
attachment suits. and other legal compli-
cations. All claims against the firm were
l,
| finally paid up, the company, it was
! claimed. found itself practically bank
| rupt with nothing on hand as an asset
| but Il stock of shoes As result Of this
condition nearly one hundred people. who
| had been induced to invest in the Wash
ington Electus Shoe Company. found
| themselves with nothing to show for their
| money but stock certificates. which
| promised to be worthless. Through the
| efforts of one of the officers of the con-
cern, an arrangement was made whereby
the holders of stock in the Washington
business could have claim upon stock
of the Glove Button Company. Wash
ington stockholders, it is said. are not
satisfied. however, that they will be prop
| crly protected
The Subscribers to the stock were from
Washington. and small towns in Virginia
and West Virginia Ex-senator Faulkner.
W. +. Holtzman, Lorin NJ. Saunders, G.
II. La Fetra. Bushrod Robinson. Milton
Mantz. b. N Berry, Solomon Morris, NJ
T. Cockey, and Julius Lansburgh. are
among those who have been, as some Of
them express it, caught in the deal"
Some of them, however, are by no means
willing to admit that they have suffered
from any unfair dealings, and say that
no IF hs Rnt
pany are carried out. they will be satis-
fled
The history of the dealings of the
Washington Electus Shoe Company dates
from about November 1893. At that time
the Electus Glove Button Shoe Company.
a corporation in Baltimore, owning pat
ent upon clasp button and one on
rubber elastic gore, came to Washing
ton and began to fit up the old Houghton
& Dutton store, now occupied by Marcus
Notes, in + Street While working here
to get the branch started, T.. l.. Tunis.
of the Baltimore firm. succeeded in in
teresting in his patents a number of well
known Washington business men. MIR.
Tunis. with the aid or a Major Anderson
had already begun 10 develop the Wash
ington Electus Shoe Company.
The concern was a corporation insti-
tuted in Delaware, with So, ,0j0 capital,
and ii was to be an entity entirely sep
arate from the Baltimore concern. The
subscriptions, it is said. did not come
in particularly rapidly. 1t was agreed
that the Glove Button Company was to
take . per cent of all stock sold. 1t has
been impossible to get an exact state
ment Of the amount OF stock subscribed
for. Some estimate it at as high as $40
0oe. and others as low as s., 900. The con-
servative estimate is 5000
The company was finally organized. The
board of directors elected was as follows:
l. NJ. Saunders. President; b. y. Berry,
Vice President, afterward succeeded by
ex-senator Faulkner; Bushrod Robinson
Treasurer; NJ. r. Cockey, Secretary; +.
l.. Tuns, and H. II. Tunis. directors, and
]. B. Finster general manager.
Between the parent house in Baltimore
and the Washington company, it is said,
an agreement was entered into that the
Washington house would take all its
shoes from the parent house. paying "A
royalty Of 10 per cent for all shoes taken
as they were sold. 1t is stated that the
entire amount of money collected from
the sale of stock, well as the entire
amount obtained from the sale of shoes
was sent to the Baltimore firm to dis
charge the obligations Of the Washington
company. The Baltimore firm had fitted
out the Washington store in most lavish
style. and asked to be paid back the
amount laid out.
The business of the concern I'm Wash
inSton ran on for several months Dur
ing December, just Sfter the opening OF
the store, the promised dividend OF Der
cent per month was paid after which IL
- claimed, no return was made to the
stockholders. In June the Baltimore men
in the firm, Tunis and Finster are said
to have approached the Washington mem
bers, stating that the store had been
that it be closed that the stock I,e
moved into a smaller store. After a meet
inS of the stockholders, this was agreed
to- as il was seen that the business was
not paying. The stipulation was made
that the business should he resumed i'm
some store in Seventh Street when tn.
fall season opened.
After being removed from the store I'm
Il Street, the snces were placed 18th the
American Security and Trust Company
FOR safekseping.
During the summer Mr Saunders the
president Of the concern, discovered, il is
said, that an attempt was being made
to remove the goods to Baltimore. No
stockholders. meeting having been called
TO consider the step. Mr.. Saunders lodged
a remonstrance with the American Sc
curity and Trust Company against the
removal After some parleyiuG. II is said
an agreement was reached between the
Baltimore people and the Washington
stockholders. that the shoes should be-
removed bat that stock certificate for
&5.O0p, representing shares In the parent
company in Baltimore. should be placed
in the hands of Mr.. Saunders as seCuri-
ty. IT was further agreed that the Bal
timorc company should exchange four of
glts Il. yl4..1. .I..,-