New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-08
RAP NATIONAL SALT SALE.
CH4RGES OF FRAUD MADE.
Stoclth, rs Make 1ccuSdti0n of
Encouragement and Deception.

Argument vas heard and decision reserved yes
terGay by Justice Leyentritt, in the supreme Court
on the application Of Nathan s Beardslee and
Frank /. McDerrot;. receivers Of the company.
and Of Samuel j. Halliday. to confirm the sale by
auction on September IS OF the property OF the
National salt Company TO Halliday for SS375oO.
The motion was opposed by Pomroy Brothers
number 81 the holders Of preferred stock In the
company who declare that the sale was made to
the international salt Company in reality. Halli-
DAY being its agent for less than the real value Of
the property.
These stockholders have brought action in the
Supreme Court. asking that the sale should be
enjoinod uutI the facts could be investigated and
passed on 5y the court: that the order OF the Su-
preme Court in the suit Of Chauncey II. Striek-
land against the National Salt Company, entered
on July Is. directing the sale Of all the property
n the State Of New-York, at Ithaca, should be
decrees 70 have been obtained by deception prac-
tised on the court and set aside: that Nathan 5.
Beardslee and Frank p. McDermott the National
Salt Company. Csluncey H. Strickland Samuel
j.. Halliday the International Salt Company,
Edward J.. Fuller and their agents should be re-
strained from taking any further steps TO carry
out the order OF The court; that the receivers be
directed 10 give inventory Of the properties re
ceived by them, and that they be removed as re-
ceivers and others appointed in their stead.
II is charged in the complaint that in 1901 the
National Salt company was controlled by directors
and officers. Who acted in the Wilful pursuit OF
Their own interests rather than those of the COM
erty Of the company, and. to pay unearned divi-
dends. borrowed more than $4,000. The dividends
were to be paid. as alleged. 10 enhance the market
value Of the stock and enable the directors TO
dispose OF their holdings at large prices. these
holdings in several Instances consisting merely Of
promoters profits.
Milo n. Bedding and Edward L. Fuller were, it is
alleged the holders OF a majority Of the stock OF
the Rets0f Mining Company, and Joy Morton Of a
large quantity OF stock Of the National salt Com
p2ny, and by exchanging their securities for those
rically the managers and propTletors Of that cor
pOration Then, il is asserted, they conSplred TO
tional Salt Company, elected q new board OF d.
FecIO-s and then, instead Of using the bonds OF
the International TO aid the National Salt Com
pany perverted these resources TO secure The
properties and plants Of the National Salt Com
pany. They charged with making Beardslee
me president Of the company. and subsequently,
New-Jersey courts for tho appointment Of the re-
coiveTs and The sale Of the National salt Com
The complaint says this was purely wash
sale that Halliday was merely a dummy for the
directors of the Intcrra uOnal Company. and that
81 25e 9l0 and bad. a forced sale. value OF
$4,000 Beardslee aad McDermott, receivers
are alleged TO have been parties 10 the sale, which
IS asked to be- set aside.
ON behalf Of the receivers, William r. Putney
conteuded that the sale was made in good faith,
tillu Ia NSi ~ iiil- 80
was Tho purchaser the properties We're worth 10
more than the amount paid
The application opposed by Mr.. Terry and
William A. keeuer for the stockholders Of the Ma
I. GC0dhuc, a law associate Of Mr. Terry, who
attended the sale. alleged that Nj Beardslee was
ers who were intending purchasers. any infOrna-
ton and informed some that il would be of no use
for them 10 attend the sale. the property would
be knocked down 10 the International Salt Com
pany.