New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-12
B. COCHRAN REPROVED.
duplication for ReceiUer for Uni
UerSaL Tobacco Company 4rgued.

Vtce-Chancellor Pitney. sitting in the Court OF
Chancery in Newark. yesterday heard argument
Of counsel representing L. A. McApin and the
Universal Tobacco Company on the return of rule
directing the officers of that corporation TO show
cause why receiver should not be appointed on
the complaint Of Mr.. McAlpin and others, who are
owners OF common and preferred stock. The COM
claimants ask also injunction to prevent the
Issuance of bonds to the extent of 100000
In the course of the argument, which continued
until 3 O'Clock. the vice-chancellor passed many
criticisms on the methods of the board of directors
The fun story of the suit. contained in the bill
Of complaint, fled week ago. has been published
IN The Tribune. 1t practically charged the presi-
dent with trying wreck the company. Yester-
day additional affdavitb were presented and filed
with the court. the chief signed by William H.
Butler the president. and the other by Z. A Nc
Apin, one OF the complanants.
CHARGE AGAINST E. A MALPIN.
In Mr.. Buffers affidavit the charge is made that
Mr. McAlpin was asked into the Universal
Tobacco Company because he was supposed to
have inherited the large tobacco business founded
by E. II. McAlpin. his father. The affidavit goes
on TO say that after he elected director in
the company the discovery was made that Mr.. Nc
Alpn sold his interest in his fathers estate
10 the American Tobacco Company. and was IN
fact representative of the trust in the house OF
the trusts only rival.
Mr. McApin's affidavit denied these charges in
detail. lie avered that instead of inheriting the
business he and his brothers purchased their tath-
ers business years before his death, and Quoted
81 successfully instead of a loss, Mr. Butler
alleges He also denied that he is now, in
terested in the American Tobacco Company as MI
Butler charged
There was big array of counsel in court Julen
T. Davies Judge Gilbert Collins and General h. A
McAlpin appeared for the compliments. and Al
torney General Robert H. McCarter, W. Bourke
Cochran, Wheeler H. PeckhaTn. James w os-
borne and Otto T Hess represented the defendants
MR.. DAvIEss ARGUMENT.
The hearing was opened by Mr.. Davies who
read the bill Of complaint and presented amdaVlts
in support of the statements therein made. IN ms
argument Mr. Davies said that President butter
had deliberately forced out the responsible men
among the directors of the company, to obtain en-
tire control of the company's interests. In the
places Of those forced out Mr.. Davies faid Presl-
dent Butler had put in dummies as directors VINO
were ready TO do his bidding He charged that the
treasury fund of 10000 had disappeared he de-
clared that the company was bankrupt and that u
was only Il burlesque to refer 10 100000 OF common
stock All the common stock. he said. amounted TO
100000. The company. he declared, was IN deot
10 the extent of Sl-50o.Go
REPRoVEs Mr.. COCHRAN.
In Mr.. Davies's argument Mr.. Cochran inter
rnted the speaker and was reproved by Vice-Chan-
cellor Ptney who told him he should not interrupt
the proceedings. Mr.. Cochran had not been intro
duced 10 the of the counsel for the
defendants. and Attorney General McCarter mast
ened to explain that this oversight on his
mart He introduced Mr.. Cochran to the court
Vice-C Chancellor Pftney said he glad TO meet
Mr. Cochran hut that what he had said concerning
the interruption the proceedings must stand
The court frequently announced disbelief in mod
ern cooperative reorganization methods, and de-
clared that the common stock of the UnlFefsal
Company was made up of wind He said also that
,yhra he knew BENJAMIN B. McAlpin well, he had
no svrpathy for him if it should be proved that
he lost all the money he had invested in the cor
,,ora+ion They went into this scheme with their
e,.es omen he said. It's fraud on the face of
it and want all counsel here TO understand JUST
how feel about these stock watering schemes
During the recess E. A. S. Lewis representing
Thomas ". Lawson. of Boston. and Camille Wei
denfeld Of this city. were admitted by the vice
Chancellor as co-complainants.
Before resuming the session Vice-Chancelor Pit
ney prefaced the argument of counsel by reitor-
ating his belief that the voting trust plan to which
The compiainants object outrageous, and un-
doubtedly was intended to wreck the corporation
1t was admitted in exchange between the Va
rious counsel and the court that President Butler
and his brother George H, had more actual cash
invested in the Universal Tobacco Company than
any others interested who were represented in
court The vice-chanceTor finally remarked that IT
was unfortunate that some way could not be
for a few months until a consistent and definite
plan OF conducting the business could De deter
III I shall appoint receiver the federal courts
may step in and declare the company insolVent
Mr. Davies cited the statutes applying to bank,
rlIptcy cases. remarking that Judge Collins had
ION Won needn't do that" calculated the Court
81 don't care what the statutes say on the case
struction placed upon the statutes by the fedeTa
court judges. and Judge Kirkpatrick has decioed IN
very express terms that the appointment OF re-
cever is an of insolvency"
The case Will continue tomorrow