The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1901-07-09

wilson, T.. l.. Peck and others, was
admitted yesterday, by f.. IL. Peck,
when he was cross examined by the
plaintiff's side. in the continuation OF
the hearing before Judge j. w. Car
penter. yesterday.
The plaintiffs are suing to prevent
the consummation of deal by which
the defendants will deprive them OF
$4,000 worth of the Cherry River
Boom and Lumber company stock, Tor
which they hold options.
When the company was first pro-
jected IL set aside $4,000 worth of the
stock. divided it into three parcels of
$4,000 each, and authorized G. ID.
Simpson. one of the officers of the
company, to take three calls for this
stock and dispose of it at par to GER
tain parties connected with the Balu-
more e. Ohio road. whom they deemed
il wise to interest in the company.
Mr.. Simpson gave the option to an
officer of the Baltimore e. Ohio, and
while they were in the latter's possess
sion the lumber company, with his
assistance secured q very favorable
contract with the railroad for carry
ing its product to market and for
the construction of a spur from its
main line to the scene of the lumber
company's proposed operations.
DISPOSED OF OPTIONS.
The Baltimore & Ohio party who
held the options disposed of them
some time after the deal for the fa-
vorable contract had been successfully
consummated. The purchaser in turn
put them up for sale and the three
plaintiffs bought them In. However,
when they went with their calls to pur-
chase the stock. the secrctary-treas-
| urer of the company, c. p. Davidson,
would not recognize them, cash
| continuing tender was made by the
| plaintiffs attorneys TO Mr.. Davidson
on July II. last. He admitted that
| the stock was still in his charge, but
would not transfer to the holders OF
| the option.
one week later, a large majority of
| the stockholders met i'm a hurricdly
called meeting, rescinded the action
| by which $4,000 worth of tho stock
| was set aside To he disposed of at par
| to the holders of the options, and
| proceeded forthwith Ia parcel out tho
| stock among themselves, taking it AT
| par value. Offers Of 5000 for each
800 share were at that time being
| made.
This meeting. it Is claimed by tho
| plaintiffs. was irregular, in that IL
Was called by notices marked at 7:3f
o. m, July Il. for $50 o'clock OH the
morning of July IS. when the prcsi-
dent of the company, j. w. Oakford
and Henry Bclin and other directors
| who were supposed to be unfavorable
| to the reputation of the cOmpany's
| former action, were away from tho
| city.
A HURRY-UP MEETING.
ON that same morning the parties tc
this hurriedly called meeting organ
| IL ed a previously projected company
called the United States Lumber com.
pany. a trust concern which was tc
! combine all three of the big lumber
companies. i'm which the Pecks, David
son and others had heavy holdings
namely the ]. j. Newman Lumber
company, of Mississippi; the Lacka
wanna Lumber company. which oper
ates in Potter county, and the Cher
ry River Boom and Lumber company
of West Virginia.
They arbitrarily fixed the price th
|
bring in the new company, depressin,
that of the Cherry River company II
which they were the least interested
and initiating that of the Lackawannt
and Newman companies in which the.
had considerably more extensive hold
ings.
With the $4,000 worth of stock nov
at issue the defendants were enable
h,Sf
scheme. 1t practically is the balanC
of power as between the contendin
parties. For this reason the suit
not for damages but for specific per
formance of the option contracts
Without this stock, the previousl
acquired holdings of the plaintiffs wi
be subject to further arbitrary treat
, ment at the hands of the defendants
, it is claimed. The injunction praye
; for Is therefore to compel the officer
of the company to honor the optic
specifically.
MIR. PECK EXAMINED.
Mr.. Peck, the general manager c
, the Cherry River company, was ur
able to attend the previous hearn
and yesterdays session was particu
Clever questioning by Major Evere
Warren, who, with James II. TOrrey,
: counsel for the plaintiffs, induced NJ
Peck to affirm, reluctantly, but neve
Z theless satisfactorily to the plaintiff
practically all their contentious.
He admitted the authorization to NJ
Simpson to dispose of the options
e question and that as a result of NJ
y | G
cured with the railroad company.
very material reduction in rates, he az
> mitted, was secured to the lumb
5 company's dumping grounds" Wasl
u ington, Baltimore and Philadelphia.
Inquiry into the operations of Il
$ United States Lumber company, Il
c trust organized by the defendants
I absorb the three others, to the disa,
e vantage of the Cherry River cOmpan
e in which they were the least intereste
o Major Warren brought out from NJ
e Peck that the Pecks hold only $1,000
e worth of the $1,000,0O0 stock of Il
u Cherry Valley company which was
e bring only $3.50 a share in the combir
o while in the Lackawanna compan
q which was to bring 5000 a share, tn
j. hold $4,000 of the $3.50 900 stock, al
III lne NtNHdH NplllIldHSi NHl'i y 90
bring $3.50 share, they held 100000
the 100000.
The Pecks and Davidson and the
,c "cronies." as Major Warren dubb
IN them. hold pretty much all of the Lac
nc awanna stock, which was given so d
k' clded a preference.
5, WHAT HE ADMITTED.
Referring TO the meeting of July