New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-16
MASSACHUSETTS RAPED.
DEGENERATE.
SO Vice-CkanceIIor Pitney Says an
Universal Tobacco Case.

Argument the application of Edwin A Nc
Alpin and others the appointment of receiver
for the Universal Tobacco Company resumed at
Newark yesterday before Chancellor Pitney, by
Attorney General Robert II. McCarter, of counsel
for the defendant corporation. Mr.. McCarter said
that when George ?. and William Fl. Butler, w.
Bourke Cochran and II. c. Messenger agreed to
put money in the company. which to be
financed by Tilford. il with the understanding
that the voting trust should exist and that Tilford
and Wilson to remain with them in the at
tempt fight the American Tobacco Company.
But instead OF doing so. Mr.. McCarter said. Til
ford and Wilson got out when they had what they
wanted and did not consider the obligation they
under TO the others who had joined them in
the enterprise.
Mr Mc6arter declared that the allegation of in
soIvency made by the compliments false. He
the bare fact that the corporation wanted
more capital was proof OF insolvency. He csked:
Where are those men who have made millions
out OF the scheme by selling out: Instead of pro-
ducing capital as they had agyeed TO when they
drew the others into it. they do not even make a
suggestion"
Vice-Chancellor Pitney, interrupting, said Il do
NOT quite agree with counsel that they made
niilons' assume that they made about S50O,OOo
less expenses. What they got beyond that was by
cheating soraebody''
Wheeler H Peckham. also for the defence, fol-
io"eo- he began by reading the text OF the new
massachusetts Corporation law from an editorial
Tut he interrupted by Vice-Chancellor Pitney,
who said that. in his opinion the judicial and
general public of Massachusetts had degenerated,
compared with what they were thirty years ago.
Mr.. Peckham referred TO Vice-Chancellor Pit
neys opinion of Massachusetts, similar to his
opinion a few days ago regarding Wall Street
and stock imitation. He again interrupted by
the Vice Chancellor. who said:
You know and I know. and everybody ought
know, that stock is inflated TO unload 1t on the
public I consider it a fraud. and the people who
buy fools The men who initiate the stock take
advantage Of the old adage All fools are not yet
dead 1t may be old-fashioned idea. but II is
ground into me, and I afraid cannot shake
# of"
Mr. Peckham. resuming said It made differ
ence to him whether the Vice-Chancellor shook 1t
off
After recess Mr. Peckham said that if it were
found after the organization of an industrial
combination that another other concerns could
be purchased and the business enlarged, it would
he wise to take in such firms. This was exactly
what was intended in the case Of the Universal
company with the result that. success vas in
sight. the concern was sold out There was at
present at issue the protection Of some one VINO
had been defrauded, and ii was TO this that much
consideration must be devoted. He reverted TO the
alleged attempt by the compliments to sell out
the Universal Tobacco Company TO the American
Tobacco Company, and declared that several OF
them gave ,.4eir proxies TO one or two former
members Of the voting trust for that purpose.
M Peckham was still talking when the court
adjourned He will finish when the case is re-
sur1ed in Jersey City tomorrow at 10 o'clock. W.
Bourke Cochran in court all day expecting to
follow Mr. Peckham in defence of the company
also. but he did rot set chance TO SPEAK. II,
In the course Of the argument there wers seXeral
lively lifts between Mr.. Peckham and the wee
chancellor The latter's frequent Interruptions
nettled the New-YOrk lawyer, who answered MIN
IA her CURLY several times. The other. lawyers
present including Mr. Cochran and James w.
Osborne seemed enjoy the proceedings greatly.
Mr. Peckliam attacked Frank I1lford as man
VINO had betrayed the Butler brothers and VINO
should De in the Denitentiary. He contended
strongly that every action of the president Of the
Universal Company and his brother was
honorable.
The Vice. hancellor remarked to Mr.. Peckham
NV way of dra wing a parallel case: Would the
B,ltlers be willing 10 take bonds of the company
AT mar for the Indebtedness to them. providing the
other faction would take an equal amount? The
u-opositiou had scarcely dropped from his Ups
when there was a chorus of, We will, from the
Buffers arI their counsel. The Nice-C chancellor
was nettled over quick reply and shouted that
he had not asked for answer
ON the organization Of the voting trust the court
declared il could take no action on preliminary
hearing TO the validity Of such an arrange
lnent He asked counsel to direct their attention
10 possible action by the court in maintaining the
moGus vivcrd pending his return from his vaca-
ton, with reference TO the A.0OoWO bond issue.