The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-08-17
SUES F. TILFORD FOR 100000.
BUTLER SAYS HE BETRAYED UNI
VERSAL TOBACCO COMPANY
by Selling the Henry Clay-E3ock Company
to the Trust and Taking the Pront
--Tflrord Alleged TO he Hiding NJ the
Wald0rf-AstOria to Elude SUbpOenas.


II was learned yesterday that President
William II. Butler Of the Universal Tobacco
Company obtained an order last Wednesday
from the Supreme Court in this city re.
| quiring Frank Tilford of the firm Of Parh
4 Tilford to show cause why he should moi
pay over to the directors Of the Universal
Tobacco Company certain sums OF money
constituting the profits on the sale OF the
Henry ClayBock Company of Havana to
the American Tobacco Company.
Edwin V. ID. Paul, secretary and treasurer
OF the Universal Tobacco Company, said
yesterday that subpoena servers had been
! on the track Of Mr.. Tilford for three days
and had been unable to reach him.
He is at the Waldorf-Astroia, Mr.. Paul
said, -but he has been keeping to his room
ever since he found out that we had begun
these proceedings. The order is return
able next Tuesday. We shall get at him
in some way before that time.
What we want to know from Mr.. Tilford
is how much he made by betraying his fell
low directors OF the Universal Tobacco
Company when he sold out the Henry Clay
Book Company to the Tobacco Trust. He
was ono of the managers OF a syndicate
formed for the purpose of purchasing that
company and making it a part Of the Uni
versal. The sum subscribed for the pur-
pose was 81 100000 He went down to
Havana with full power to act.
I'VE charge him now, as we have charged
him in the Jersey courts before with hav-
ing used his position TO sell out to the trust
and thus mako a profit of S5OO,OOO That
money belongs to all the members OF the
syndicate. and we are now applying to the
courts for aid In staining from Nr. Tilford
what is coming to us.
Il want to add that regard the charge
of mismanagement brought against Mr..
Butler in the Jersey courts as nothing
but an attempt on the part of Mr.. Til
ford to ward of our proceedings against him.
He knew that we were preparing to moX
and tried to forestall us. | don't think
he will succeed
MIR Butler il represented in these new
proceedings by the same counsel who are
defending the case against him before
Vice-C Chancellor Pitney in Jersey City.
Wheeler H. Peckham and W. Bourke
the hearing is resumed before the Vice
Chancellor to-day, continue their efforts
begun last Saturday, 10 show up the part
played by Mr. Tiford in this matter"
Sun reporter who tried to see Mr.. Til
ford at the Waldorf Astoria vest erday was
told that Mr.. Tilford was too sick to receive
anybody. When, five minutes later, a
note was sent up TO Mr.. Tiford's room, il
was returned unopened, with the eXplana-
tion that Mr.. Tilford was not in.
The charge of betrayal of his former
associates in the voting trust that governed
the Universal Tobacco Company was first
made public last Saturday while hearing
on' the receivership application for this
company was going on in Jersey City.
IL had before that appeared in the sworn
affldavits filed by William H. Butler in OPP
position to the application for receiver.
This ia part of what MIR. Butler said:
While negotiations were pending looking
TO the amalRamation OF the Havana Com
pany and the Universal Tobacco Company
II transpired that rilfOrd and Rafael Gown,
two OF the syndicate managers appointed
by the other directors of the Universal To-
bacco Company TO finance the deal. in direct
violation of their duty to the syndicate mana
gers and without my knowledge. had sold
out the said stock lin the Henry Clay-Bock
Company TO the Tobacco Trust
As a result Of this treachery of Tilford
and Gown, a suit has been commenced and
is now pending in the COURTS Of New York
on behalf Of the members of the syndicate
10 compel them to disgorge the profits which
they made by their breach Of trust in the
sale OF the Henry Clay-Bock Company to the
Tobacco Trust firmly believe that this
suit for the appointment OF receiver for the
Universal Tobacco Company Ia retaliation
by them in some way TO prevent the further
prosecution of that litigation and to force a
settlement Of that suit
The members of the syndicate formed
for the purchase of the Henry ClayBock
Company were william H. Butler, Hollins
4 Co, Frank Tilford and Henry Wilson,