The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1901-06-29

Never, possibly. before in the his
| tory of the county was there such an
array of prominent citizens partici-
pating in legal proceeding as there
! was yesterday in the first hearing be-
| fore Judge Carpenter in the equity
| case of C. d. Simpson, William Con-
nell and Thomas E. Jones against the
Cherry River Boom and Lumber COM
pany, C. p. Davidson. J. w. Oakford,
| d. r. Hand, c. d. Jones, +. l.. Peck
and others.
Among the witnesses were Congress
| man William Connell, c. d. Simpson
and Thomas II. Watkins, of Simpson
e. Watkins: Major j. w. Oakford. G.
p. Davidson and w. G. Parke. 9th
ers who were interested spectators
were H. H. Brady jr.. c. D. Simpson,
Attorney Ezra II. Connell, Alfred Con-
nell, S. NJ Parke. A. Fl. Law, Walter
Briggs. Charles II. Welles. Thomas
Sprague DR.. d. B. Hand. A. D. Dean,
l.. j. Williams and c. d. Jones, many
of whom are stockholders in the de-
fendant company. Attorney Harmon
and G. f. Randolph, of the Baltimore
| and Ohio Railroad company were also
present as witnesses.
The attorneys in the case are Major
| Everett Warren and James II. Torrey,
representing the plaintiffs. and S. B.
Price, George l.. Peck and Robert
Peck, representing the defense.
Major Oakford. who is one of the de-
PENDANTS. is only such in his capacity
as president of the defendant COM
pany. Personally he stands with the
plaintiffs.
THE CAUSE OF ACTION.
The cause of the action was given
in detail, in The Tribune of June Ia.
Briefly, it is as follows: The Cherry
River Boom and Lumber company was
| organized early last year, to develop a
| n 900 acre tract of timber and coal
land in West Virginia. The incorpora-
tors We're c. p. Davidson, c. d. Simp-
| son, j. w. Oakford, Henry Belin and
F. L. Peck.
The company was incorporated with
capital stock of 81 900, but this was
eventually expanded to $l,000.000. and
the work of putting it out was begun.
Various local investors were interested
and induced to take stock
When the company was about ready
to begin business the directors deemed
it desirable to interest the Baltimore
and Ohio people in the enterprise, and
a committee, consisting of Messrs.
Oakford, Simpson and Peck, waited on
President Cowan, of the Baltimore and
Ohio. and after some months of nego-
tiating. succeeded in making a very
| favorable contract.
AS "a means of helping on the nego-
tiations it was decided to let some OF
| the Baltimore and Ohio officials into
| the company. and Mr.. Simpson was
given three calls for $4,000 worth of
| the stock. al par, the calls to be good
| until the end of the year 1901. Mr..
| Simpson disposed of these calls to
George F. Randolph, of Boston, Mass,
| an official in the land department of
| the railroad, and his being interested
| in the company tended to help along
| the securing of the favorable con-
| tracts.
This action on the part of Mr.. Simp-
son was ratified at a subsequent meet
| ing of the board of directors.
MIR. RANDOLPH HELD CALLS.
Mr.. Randolph held the calls for a
| time and then assigned them to c. S
| White, of New York. Later on, Ran
| dolph bought them back again and dis.
posed of them to the plaintiffs. They
| sought to secure the certificates OF
| stock covered By their call. but not
withstanding that the board of direc-
| tors had ordered the president and Sec
retary to save $4,000 worth of stock to
| meet these calls, the certificates We're
not forthcoming when the calls were
| presented. Major Warren and Mr.. Tor
rey waited on Secretary Treasurer
Davidson, June 1S, and again on June
IL. and offering the par value of the
stock in legal tender and agreeing that
| the tender should he a continuing one
| Mr.. Davidson refused to turn over the
| stock to them, but instead is intending
to turn it over to other parties.
June is, meeting of a majority OF
the directors was held, at which the
action of the previous year in assign
ing $4,000 worth of stock to c. d.
Simpson, to be disposed of to railroad
| officials, was rescinded and it was
| voted to dispose of the stock to friends
| of the directors present, Mr.. Belin and
Mr.. Oakford, the directors who We're
| friendly to Messrs. Simpson, Connell
| and Jones, We're not at the meeting and
received no notice of it. The notices
| We're mailed at $40 p. m. The meeting
was held at $50 o'clock the next morn
ing.
To prevent the company from tuln-
ing over this stock to any parties other
| than the plaintiffs, injunction proceed
ings We're brought, on Tuesday, June
is. Judge Carpenter granted q prelimi-
nary injunction as prayed for and a
rule to make II permanent. The rule
was made returnable yesterday morn
ing.
Before the hearing was begun yester-
| day, the plaintiffs amended their bill
by adding a paragraph setting forth
that they purchased the options on
calls because they wanted the stock In
specie and not for the purpose of re-
| sale or speculation; that compensation
| in damages does not offer an adequate
remedy, and that at all events there is
no certain way of determining the
value of the stock at present. In sub
stance, the amendment is demand fol-
| specific performance of contract.
| ANSWER FOR THE DEFENSE.
yesterday by C. p. Davidson for him,
self, as treasurer and for the COM
pany, Its averments are substantially
set forth in these paragraphs:
Your respondents aver and allege that C. d
| Simpson has not in accordance with the term.
OF the resolution interested outside parties in Tho
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