Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-02-16
Judge Whitaker Issues Iniunc-
ton Restraining Absorb
ton of Fort Dodge Co.
THE TRIAL WAS SENSATIONAL
Secrets Of the Combine Are Laid Bare
by Witnesses for the Plaintiff, c. J.
embellishments capitalization of
the Trust Without Expenditure of
Any Money.
peciai to Times-Republicar

! Special to mes-RepubicaE
/ Fort Dodge, Feb. 16.-Judge Whit
aker has issued a decree enjoining the
Fort Dodge Plaster Company from
selling its interests to the combination
which now includes four out of the
six mills in Fort Dodge. known as
United States Gypsum Company, the
so-called trust. The decree was in the
case of C. j. Crawford against the Fort
Dodge Plaster Company, in which the
plaintiff alleges that officers of the
United States Gypsum Company We're
manipulating prices SO as to force him
| to sell out his interests in the defend
ant company. The trial occupied the
entire week, and many of the oHcers
of the United States Gypsum Company
were on the stand. The injunction is
sued by Judge Whitaker is perma-
nent.
During the course of the trial Emf.
Durr. treasurer of the United states
Gypsum company reluctantly admitted
on the witness stand the financial con-
dition of the United States Gypsum
company to be substantially as fol-
lows:
The company was incorporated under
the laws of New Jersey with capi-
tai stock of S7,500.o0O, of this amount
S4 100000 being preferred and $S.ooo'-
900 being common stock; that there
is now issued total of $5,S0O,00O OF
this stock in payment for various prop
critics which the company either owns
or controls; that the company is ON
ing to banks the sum of S465,ooo, ana
that the total floating indebtedness is
sS6S,0o0; that it had issued Sl,ooo.ooo
worth of 5 per cent bonds ana tfas
the company had put $25O.o0o worth
of those bonds with one of the banks
rs collateral: that there We're personal
guarantees on its paper to the extent
of S175O00 and that it's quick assets
only amounted to $465,0O0; that MS
company had actually started in bust
ness with out selling one dollars worth
of it's capital stock to provide working
capital. and that the present cash on
hand is about $4,000.
Mr.. Durr claimed that the company
had earned in the past year Z pc:
cent on its accumulative preferred
stock, but admitted, however, that the
company paid no dividends last year
and has not paid any since it's organ
iZation.
b. W. McCausland. president of the
United States Gypsum company. altho
forced to admit on the stand that his
company possessed the power to main
tain prices in any particular district,
alleged that at all times 1t was COM
petition that cut prices and not the
trust. Senator Healy. who succeeded
Mr.. Kelleher in the cross examination,
touched upon the condition that had
prevailed in the Fort Dodge district
in the past year. where prices had con-
tinually declined in plaster to $3.50
a ton. which Mr. McCausland adj
mitted was ruinous price and had
Fort Dodge district, at the time wag-
ing warfare against the Mineral City |
and the Cardiff Gypsum COM
pany, which finally ended in the pur-
chase OF the Mineral City company
for $4,000. The witness WINGED when |
Senator Healy forced him to relate of |
a visit of Mr.. Breen. manager of tho |
Cardiff Plaster company, to Chicago al
which tirle he informed Mr.. Breen of
his determination to raise prices on
January 1, 1903. from $3.50 to SIS per
ton, but professed not to know that Mr..
Breen's company had done the same
thing on the same day Inquiring fur
thsr into the matter of prices, Mr.. |
Healy brought out the fact that the
northern Minnesota territory was
obliged to pay $3.50 at the Fort Dodge
mill. while in the state of Missouri there
was an IS delivered price, whether from
Kansas City or Fort Dodge, except in
the city of st. Louis which brought I
plaster at Sc delivered and in Kansas
City where plaster was bought for $3.50,
while the trust generously fixed up
the work for the worlds fair work The
prices thruout other territories varied
according to location of mill and the
territory in which the product was sold
and delivered.
In the course Of the examination of
c. G. Root, witness admitted in ref
erence to the financial condition Of the
that all but $4,000 worth of
the issue of the million dollars worth
Of bonds was in the vaults of the com
pany. When his attention was called
to the statement of the treasurer that
s250.000 of the bonds had been disposed
as collateral with banks he passed X
lightly, asserting that that amount was
a mere bagatelle. Mr. Root was for
merly connected with the Adamant
mixing plants in Minneapolis and Mil
and he testified that the Adam
ant company was paid for these prop \
critics $450,000 in trust securities and /.
It was afterwards shown on cross ex-
animation of c. F.. Duncombe. local
of the United States Gypsum
company that the cost of mixing !;
plant was between $1,000 and $4,000.
Senator Thomas ID. Healy in his
opening argument yesterday denounced
he methods of the company and its
purpose. and touched upon the liability
Of the company's stockholders in its
greatly inflated securities
Her FOURTH DIVORCE.