The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1903-08-28
&? FOOLS 70: n i q > us
Sd says New Jetses Juda asy itis apaAE;
Ing Of fwails sitE'slssst.

All Tools are not uead YETI is the
motto Of the Wall street promoterswho
are foisting inflated stocks on the pub
lie, said Vice Chancellor Pltney to tie
attorneys arguing the application OF
Edwin A. N1cAlplnnnd others at New
ark, N.J., for the appointment Of i
receiver for the Universal Tobacco
Company. a
\ Attorney General Robert ii. hfcCar:..
ter, OF counsel for the defendant cor
poration, began the argument. 'fie
said that WHEN George B. and William
II. Butler, w. Bourke Cochran and II.
G. Wiesenger agreed to put money in
the company, which was to be financed
by Tilford, it was with the under
standing that the voting trust should
exist and that Frank Tilford and
Henry II. Wilson were to remain with
them In the attempt to fight tile
American Tobacco Company. But in
stead of doing so, Mr.. McCarter said,
Tilford and Wilson got out when they
had got what they wanted and did not
consider the obligation they were un-
der to others who had joined them in
the enterprise. 4
He claimed that the allegation of in
solvcncy made by the conplainantS
was false. He said that the fact that
the corpora tion wanted more capital
was no proof Of insolvency. FTe asked:
Where are those men WHO haveimade
millions out uf the scheme by selling
out?"
Vice Chancellor Pltney, interrupt
ing, said: Il do not quite agree with
counsel that they made millions.
assume that they made about $780,
900, less expenses What they got
beyond that was by cheating some
body"
At the close of Mr.. SlcCartcr's argu-
ment Wheeler II. Tcckham followed
for the defence. He began by read
ing the text of the new Massachusetts
Corpnration law, but was interrupted
by Vice Chancellor Pitney
''The Massachusetts judiciary is dc.
gcncrating," announced the vice
chancellor, and don't consider their
opinion any more. Thirty years ago
it was different"
When Mr., Peckham resumed By re-
fcrring to the vice cllanccllor's opinion
Of Massachusetts us similar to that OF
the opinion expressed by the Court IA
few days ago regarding Wall street
and stock iniiat ion lie was again inter
ruptcd by the vice chancellor, who
said:
You know and I know aud every
body ought to know that stock is in
Hated TO unload it on the public. l
consider it Il fraud and The people who
buy are fools. The men who initiate
The stock take advantage Of the old
adage, III fools are not yet dead. 1t
may be an old-fashioncd idea, but it is
ground into me and l am afraid can
not shake it OFF,"
Vice Chancellor Pitney suggested
before the hearing Of the argument
began that he was fully decided that
he could not interfere with the Butler
voting trust at this time. and request
cd counsel to address themselves as to
the Courts action in maintaining the
moduS viyend. '4
",rhe important matter to be set
tied now" he said, us to decide upon
action to be taken in the restraining
order now in fUrce against tho bond
isSusc. AS the order stands today it
stops the sale or transfer OF these
bonds"
MIR. Peckham resumed his argument
after the recess. He said that if it
were found, after the organization Of
an industrial combination, that other
concerns could be purchased and the
business enlarged 1t would be wisdom
to take in such firms. This was axact-
ly what was intended in the case of
the Universal Company, with the re.
suit that just as success was in sight
the concern was sold out. There was
at present at issue the protection Of
someone who had been dcfrauded, and
1t was to this that much consideration
must be devoted.