New-York tribune., 1902-03-17
NIXON IN \ POWDER SUIT,
THERE WILL BE \ POLITICAL BLOW UP
IF PLAINTIFFS COUNSEL
KEEPS HIS WORD.

louis Nixon has been ordered by Justice
Reach of the Supreme Court, to appear in Spe-
cia1 Sessions next Monday TO undergo an exam
inatton in a suit brought by DR.. Carl w. Nolney'
involving the disposition Of nearly S4'pc'Vp OF
stock of the International Smokeless fo"uer
and Dynamite Company of which MI Nixon IS
the president NJ Marley Platzek, Mr. Nixon's
attorney has obtained from Justice OGornan
an order to show cause why the order TOT MS
examination should not be set aside. ana TINS
motion will be heard to-day. The plaintiff, DIR.
voIDev charges that the Tammany leader, by
repeated misrepresentations. withheld from him
his share of the stock and profits. He alleges that
he released TO the corporation all his patents Tor
snokeIess powder in exchange for which Mr..
Nixon divided with him $3.50 600 Of stock Of the
conpanv, which DIR. Volney understood was
capitaIized at 81 100000. DR.. Volney afterward
learned according to his affidavit, that the con-
Germ was organized on SlO.UO,oco oasis anu
that Mr. Nixon should have divided with hiih
81 5Oo 600 worth of stock. Dr. Volney further al
laoas that Mr. Nixon agreed TO make him gen
eral manager of the company. at salary OF
$500 a month for the first year and S6tp
month thereafter; that he received the appoint
nent and continued in the position only for
four months. or until he had surrendered MS
patent rights. when he dismissed. Gu
to,,s sta+er,ent in the sworn affidavit of DIR.
I-olra,, is that Mr. Nixon told him that in the
allotment of his share of the stock 1t was neces-
cary TO set aside as a gratuity 'S1o,on OF STOCK
for a certain lieutenant, who was an ordnance
oe,cor Of the United States Government and for
oar,otr pevspaper men," because, as Mr.. Nixon
Co ouaqad In have explained. 1t was necessary
that GOOD accounts he rendered" DR.. Nolney
r,,-s that no does not know whether the persons
e. ,,boD, this money was intended ever re-
ce,vad II but his lawyer. Myer j. Stein. hopes
n find out something regarding its disposition
,,ban Mr. Nixon ia called to the stand. In ad-
dition he saws he will try to learn what be-
can,e of several thousands of dollars in cash
which Mr. Nixon Is said TO have received from
the men who capitalized the corporation. half
of which was to go to the plaintiff.
Mr. Nfxon when seen last night at the Wal
dorf Astoria by a Tribune reporter, character
ized the proceeding "a case OF DlackInali' pure
and simple"
..voInav sold his stock in the company few
months ago" said Mr. Nixon, "and 1 suppose ne
has gone through his money and wants more
yya engaged Dr. Volney as general manager Of
our conDany but he failed to give satisfaction
and ,ve disnensed with his services. His smoke
less noyyder for which he had patents. never
manned ont. and we were unable to sell grain
~ II 70 the government. In fact we never sold
.r1 NJ his production to anybody. We obtained
q large order from the government for Berna
dou-Converse smokeless powder. which We are
now manufacturing
Mr. Nixon was asked why his counsel had OBJ
tatned the order TO show cause why the order
calling for his examination before Justice Beach
should not be set aside.
"I was not aware that he had obtained such