New-York tribune., 1903-08-18

company from Issuing bonds, and in reply 10
previous similar attacks in the same case. Mr..
Tilford last night, through his secretary, W. c.
Rader issued statement in reply to the various
allegations of counsel concerning his connection
with the Universal Tobacco Company case. The
statement in part follows:
Toseedngs @ Rs befors Seeh the cbaneeoP and Mr.
lers effort seems TO be to excuse or pal1ade ms b
making charges against myself and others VINO VINO
Company.
made is that was guilty of 'treacheryr to tne
Universal Tobacco Company, in that while di-
ecfing sale Of the 11 " properteS to
Havana commercial Company The sale nrg Gi tne oe
1902 and have not been director of the Universal
that the question of whether Mr.. Gown and acted
rightly or nor In making this sale OF the Cay
whether Mr. Butler has been guilty of mscondact 3
and mismanagement during the current year 1908
THE CLAY-BOCK DEAL.
In the latter part of the year 1901 negotiations
on foot for the purchase of a majority of the
shares of capital stock of the Henry Clay and Book
view to turning over these shares to the Havana
for this purpose. the amount underwritten being
$1,000 This syndicate never accomp,isned CON , Its It's
organized for the same purpose the amount under
Of this second syndicate Mr.. Gown and were
syndicate managers and we sucGeeGed IN acqniLiing
Il was the purpose of the syndicate to purchase.
B 6e hS H Having the ar
chase of the stock several plans were discussed for
plan was adopted there should be cash provided TO
According to Tewspaper interviews. Mr. Buffers
alleged grievance would appear to be that Mr.:
ciay-Bock properties to the Universal Tobacco
NOT and never has been in a position to furnish
any such amount of cash as would have been re-
the stock to say nothing of price large enough
TO afford the syndicate profit r-,,,,.orso, To-
bacco Company alone was never even considered
COMPANY should join with the Havana Commercial
Company in the purchase was at one fiIne 1 under
consideration The Havana Commercial Company
and the Universal Company failed however 3yt to
situation where it held the ownership Of the Clay
Book stock but m vas wa liable upon pod lGa Rave OF baen @
necessary for the members OF the syndicate TO pay pay
Of the Clay-Bock stock unless some sale could be
effected.
THIRTY PER CENT FOR SYNDICATE.
II under these conditions that the SYNDICATE r
mercia Company TO buy this stock for 81 900 in
cash hiSh was sucept @ to pay t 6 6scrbers thS
profit of over 80 per cent There can be no question
the Havana Commercial Company for the Book
shares would have been wholly unJustfaniee on the
part of the syndicate managers and would nave
subjected the syndicate subscribers to a heavy
loss instead of the profit which they actually re-
There has been pending for some time !. suit
Oe1-4--N
which he claims that the amount OF synaicate y1Gs
profits was greater thaR enI and rpeat that the
members Of the syndicate underwrote S,5OO'V9O. Tor
money as a loan was secured upon the underWrlt-
ing and the % proPsy Perence ma between the sum Of
81 eco and the amount expended in acquiring me
sT0d5cate and the only profit that the syndicate
managers received. Every member of the syndicats
has been either paid rendered his proportion OF
tie profits of the syndicate
THE ARGUMENT AT JERSEY CITY.
The argument on the application for the ap-
pontment of receiver for the Universal To-
bacco Company and order to restrain the
company from issuing $1.000000 in bonds was
resumed before Vice-Chancelor Pitney at Jersey
City yesterday morning. Wheeler H. Peckham,
of counsel for the company, opened the argu-
rnent. He accused the compainants of treach-
cry to the defendants their former associates
in business, and said the defendants had been
sold out by the complainants.
". Bourke Cochran for the defence, followed.
He admitted that the company's capital had
been inflated and said it was not the fault of the
defendants.
1T is a legacy" said Mr.. Cochran, "bequeathed
10 them by the persons who bring this action.
Twenty-Five years ago Mr.. Butler invented
cigar. He in the trust, but got out. Tilford
and Wilson formed a syndicate. BY the ad-
dition of another consonant it would become
money they told him syndicate never furnished
lnoney-it got money from others. They sue
ceeded in getting 100000 from Butler He was
10 do the work. they were to have the profits.
had some of the stock paid So a share for IT.
I'D do ii again if they were honest, but 1
wouldn't give So a busheI for it,"
Vice-Chancellor Pitney interrupted Mr.. Cock
to say that he need not waste time abusing
the complainants. the court would pay at
tention to arguments conducted on that line.
At the afternoon session Julien T. Davies, for
the complainants replied to Mr.. Cochran. Both
he and Gilbert Collins. his associate, asked that
they might have the privilege of examining the
companys books
PLANNED TO WRECK 1T, HE SAYS.
Mr.. Davies charged the Buffers with planning
TO wreck the Universal Tobacco Company by
placing a mortgage on it by which they might
reach its trademarks and brands. "-1ven now"
he said. they may have started proceedings 10
collect their claims from the Universal Tobacco
Company. When the Universal Tobacco Com
pany is wrecked then We will see the Common
wealth Tobacco Company, now building up at
its side. take the business of the Universal Com
pany"
The vice-chancellor said he wanted to ask the
defendants IL they would agree not to sue on
their notes before September g. when he would
give another hearing. You have your securi-
ties" he said TO the defendants "and don't
propose to take them away from you"
Mr.. Peckham said the defendants would agree
not TO take any proceeding to enforce the notes
IL nothing was done to alter the situation
The court said he would enjoin the use of the
bonds and stock and adjourn the case until
September 8. In the mean time the complain
ants might examine the books of the company.