The times., 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
AIIegc Unlawful Methods - opin-
ions of Sone of the Share Owners.

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
management 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 aIlege also that
an attempt was made to freeze them out
OF all Ir-sible reimbursement for their
loss by a confscation 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 Eiectus
! Shoe Company, who were also interested
/ in the E,lectus Glove Button Shoe Com
pany, to remove the stock of the former
| company from this city, without having
! r1-1c Il proper statement to the stock
| o-ders or having had proper meeting.
! 'rhey 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.
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 number Of
! attachment suits, and other legal Compli-
| cations. All claims against the firm were
settled in full. and when everything was
| finally paid up, the company, 1t was
claimed, found itself practically bank
rupt with nothing on hand az an asset
but a stock of shoes. AS a 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 ono Of the officers of the CON
Germ an arrangement was made whereby
i the holders of stock III the Washington
business could have a 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 r Holtzman, Lorin NJ. Saunders, G.
II. La Fetra Bushrod Robinson, Milton
Mantz. 3. y. Berry, solomon Morris, NJ.
r 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
if the promises of the Glove Button Com
pany are carried out they will be salts
fed.
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 III Baltimore, owning a pat
eut upon Il clasp button and one on a
rubber elastic gore, came TO Washing
ton and began to fit up the old Houghton
q Dutton store, now occupied by Marcus
Notes in + Street While working here
to get the branch started, e l.. Tunis,
of the Baltimore firm. succeeded in in
terestng in his patents number of we'll
known Washington business men Mir.
Tunis. with the aid of a Major Anderson.
had already begun to develop the Wash
! ington Electus Shoe Company.
The concern was a corporation insti-
tuted in Delaware, with S25, go capital.
and il was to be an entity entirely sep
| arate from the Baltimore concern. The
subscriptions, it is said. did not come
! in particularly rapidly. It was agreed
that the Glove Button Company was to
take > per cent of all stock sold. It mas
been impossible to get an exact state
mcnt OF the amount Of stock subscribed
/ for. Some estimate it at as high $40
0oJ, and others as low as 5000. The con-
servative estimate is $500e.
The company was finally organized. The
board of directors elected was as follows
/. NJ. Saunders. President; b. y. Berry
n .
ex-senator Faulkner; Bushrod Robinson
Treasurer; NJ. T. Cockey, Secretary; T.
l. Tunis and H. H. Tunis. directors, ans
J. B. Finster, general manager
Between the parent house in Baltimor,
and the Washington company, it is said
/ an agreement was entered into that thu
| Washington house would take all il,
. | shoes from the parent house. paying
- royalty of 10 per cent for all shoes taken
| as they were sold. 1t is stated that th,
| entire amount of money collected IRON
S the sale Of stock, as well as the entiT.
S amount obtained from the sale of shoes
- | was sent to the Baltimore firm to dis
T | charge the obligations Of the Washington
T. company. The Baltimore firm had tiJtcS
, out the Washington store in a most lavish
| style, and asked To be paid back IN,
The business Of the concern in Wash
! instOu ran on FOR several months. Dur
! ing December, just after the opening o.
-
cent per month was paid, after which, i
is claimed, no return vas made to tn,
20 | Stockholders. In June the Baltimore mel
% in the firm. TuniS and FinSter are Sais
$ TO have approached the Washington mem
| bers. stating that the store had beeI
. rapidly losing money and recommending
1 that it be closed, or that the stock h
d moved into "a smaller store. After a meet
O iu- of the stockholders, this was agree,
- | to. as It was seen that the business wa
. | not paying. The stipulation was mad
, that the business should be resumed il
q | some store in Seventh Street. when tn
q fall season opened
After being removed from the store il
| J. Street, the SuSeS were placed With IN
10 | American Security and Trust Compau
l. | for SafeEoepug.
}. | During the summer Mr.. Saunders. th
l. president OF the concern discovered. it
a | said that an attempt was being mad
h. To remove the goods to Baltimore. \
}. stock holders meeting having been Gale
i. TO consider the step. Mr.. Saunders lodge
m | a Temonstrance with the American s.
p. | CuTity and Trust Company against tn
l | removal After some pafleying. 1t is sale
h. | an agreement was reached between tn
b. | Baltimore people and the Washingto
j. stockholders, that the shoes should b
y | removed but that stock certificate fo
S25,O0o representing shares In the pareU
company in Baltimore, should be place
= in the hands of Mr.. Saunders as secur
= ". II was further agreed that the Ba
timorc company should exchange four {
y its shares to the stockholders of tn
Washington concern for every one hel
by them in their own company. The So
II 600 stock certificate is IN the hands
f. Mr.. Saunders. The exchange Of stool
/ il is claimed has not been made.