The sun., 1903-08-12
"WATER AND WIND"
vQce-ChancellOr Pitney's Opinion OF the
Stock Of Universal Tobacco Company.

Arguments on the return OF the rule
be appointed for the Universal Tobacco
Company, Of which William r. Butler is
president, was begun before Vice-Chanoellor
Pitney in Newark yesterday. The applica-
ton was made on behalf of Edward A..
McAlpin.
Frequent interruptions by counsel ex-
asperated the Court, and. al one stage OF
the proceedings, W. Bourke Cochran, one
Of the attorneys for the complainant cor
poration, was silenced. Mr.. Cochran had
not been introduced in the case. and while
one OF the attorneys for the corporation
was speaking, he rose and offered some
suggestion.
The Vice Chancellor called Mr. Cochran
to order and announced that those who
had not been introduced to the Court would
please refrain from interrupting. Mr..
Cochran sat down. and Lawyer McCarter
explained that his colleague had not been
introduced. and made the necessary intro
duction.
Il am pleased TO meet the distinguished
counsel, sir. However, that will not alter
my opinion, that there are too many law
yers. l will hear Mr., Cochran at the proper
time"
BY agreement of counsel. Julian r Davies
opened for the complainants, reading
from the affidavit Of William H. Butler,
president and general manager Of the de-
PENDANT corporation, whom he charged with
attempting to falsify the minute books OF
the directors meeting held in March by
inducing the stenosrapher TO alter his notes
30 that il would appear that there was
adopted resolution authorizing the presi-
dent to sell 9O5 shares Of the stock to George
p Butler. his brother, at 81 so per share.
"The significance Of this. said Mr.. Davies,
lies In the fact that the Butler interest
which has dominated the directory of the
company, desired TO establish a price for
market quotations"
1t seems TO me- remarked the Vice
Chancellor dryly. that the common stock
was wind and the preferred three-fourths
water. Under the voting trust arrange
ment the preferred stockholders we're at
the mercy OF the common stockholders,
who had no pec,lniary interest in il at all
Camille Weidenfeld and Thomas W,
Lawson, sometimes called the Boston
Copper King, joint owners of I, 500 shares
Of preferred stock and 900 shares of COM
mon stock, we're admitted as co-complain-
ants just before recess was taken. Mr.
Weidenfeld appeared prominently in the
famous Bower suit In New York +. A, 3.
Lewis Of Hoboken represented these two
complainants
Before resuming the session the Vice
Chancellor prefaced argument of counsel
by Ieiterating his belief that the voting trust
plan, 10 which the complainants object, was
an outrageous proposition and undoubt edly
was intended to wreck the corporation.
THE common stock, as have already
said, the Vice-Chancellor remarked, lis
nothing more than wind, and as ! look at it
now ! don't think it ought to have any stand
ing in court. | don't intend to prejudice
the case: but say this to show what is in
my mind
At point Of Mr. Daviess argument the
Vice-Chancellor said that 1t was unfortunate
that the company could not go on until a
definite plan could he determined upon
"If | shall appoint receiver, he said, ~the
courts may step in and declar, the company
insolvent
Mr. Davies cited the statutes applying
to bankruptcy cases, but the Court insisted
that it would have to be guided by the
Interpretation and construction placed
upon the statutes by the Federal court
Judges, and Judge Kirkpatrick had de-
cided that the appointment of a receiver
is an act of insolvency
The case WAS continued