The sun. [volume] (New York [N.Y.]) 1833-1916, 1901-12-31
ARREST FOR ASPHALT MEN ?
PHILADELPHI4 STOCKHOLDERS
GET ADVICE ABOCT 1T.
No steps Taken Yet In That Direction
Report That the Subsidiary Com
panles Have an Agreement to Keep Up
Prices Can Work Cheaper ThanT Trust.

PHILADELPHIA, Dec. 30.-There was a
persistent rumor on the street today that
there would be arrests and crimina, prose-
cutions springing out of the collapse OF the
Asphalt Trust. No action looking toward
arrests has yet been taken. although Lawyer
James W. NJ Ncwlin, who represents a
number of stockholders of the Asphalt
Company Of America, said tonight tina; he
had advised his clients that there had al
ready been found sufficient grounds upon
which TO institute criminal proceedings.
He declined to say whether or not he in
tended To have warrants issued. saying
that was n matter for his clients to decide.
Directors who were seen tonight do not
seem 10 he at all apprchcnsive. Two Of
them said:
well If we are arrested I guess we Won't
have much trouble getting bail"
No attempt to prevent the company
carrying ont its contracts is expected,
and ~ 1902 Is expected to he a banner year
for the laying Of asphalt streets, the COM
pany will. it is said. be- sure to make money.
Efforts will h. made at once TO reduce ex-
penses, and TO this end it il said tina there
will he "A general decrease in salaries and
that many employees will 10 dispensed
with.
II il unlikely that there will be a meeting
Of H." receivers for several days, az John
NJ, Mack IL confined to his home by illness.
Henry Tatnall, President Of the Franklin
Bank. went to New York this afternoon
and he Will spend tomorrow in the offices
Of tn" National company ~cndcavoring to
ascertain something about the condition
Of affairs.
DVTrEnNnn Do n, m I'll. nl.l~z
Asphalt Company Of Pittsburg il alleged
to hav" partly caused the failure of the
National Asphalt Company. The Globe
company and tho Warner-Quinlan Com
pany competed with the National and Sc
cured contracts for / 900 900 yards of asphalt
paving, ono-half Of the asphalt paving In
IN" whole country. Two of the largest
contracts of the National company were
held up In the Pittrburg courts and were
only recently released. Members OF the
Globe allegc that some Of the largest COM
panies of tho National company are schem-
ing To buy in stock M a low figure, r~eorganize
the company and throw over the bondhold-
~.
The report was circulated yesterday that
no lower prices need be looked for as a
result of the collapse of the trust; that the
paving companies would maintain prices
by a taCit agreement. They can pave at a
profit cheaper than the trust could, though.
reason why the trust must have a hight
percentage to keep up the game IL has been
playing was made known yesterday. 1t
was told that when the Asphalt Company
Of America was formed, each stakeholder
Of the several small companies which the
Asphalt Company Of America bought up
received $500 in bonds of that company
for each 500 OF his stock.
so that while the company in which he
vas a shareholder might very well before
that time have earned n profit on its own
capitalization, IL must under the new ar
rangcmsnt "a m enough to pay interest ON
three timer It's own apita unless some
other company II the holding company
made up this deficit H. other words the
earning powers Of the smaller companies
were capitalized in the holding company
a. though they were stable. aud bonds 81
the holding company were issued against
them.
one ~ the questions asked Yesterday
wa where the l-nrds Of 'h" Asphalt Com
pauv Of America which were bought up,
Y h. laid. hv SOM" Institutions "a Philadel-
pima a wear ago AZ W. OF tl"urHb,uts, came
from The question h. interesting In view
81 ~. fact tbat The huudr arr quoted now
at a third of that yaiIe