The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-08-18

me. but want the proper spirit shown
have placed the winning card in your hand
'n a SSSSs SSn We t ASEl h,
Court, that we must show our books to- these
men in order TO stop the appointment OF a re;
| ceiver, we retract all that we have promised
In the matter Of suits on our demand notes.
Mr.. Pitney--That statement doesn't ele-
vats you. or the gentlemen associated with
Mr. .Peekham That = a reflection on counsel
words. Don't ,do that sir, Don't invent :
| or Ill commit you, Mr.. Davies, II they beg in
these suits on these notes you can throw
the company into insolvency That's your
| remedy This ends this case until Sept. 9.
when will hand down decision.
All OF the lawyers in court, and especially
those in the case. were dumfounded at the
colloquy bet Mr.. Peckham and Vice.
Chancellor Pitney. They said they had
never seen nytlling like IL, even in New
jersey court, before.
The stock and bond issue which the
company is enjoined from making RI part
OF q scheme to raiee 81 900, 900 by mortgage
| 10 the Union TrUs; Company Of this city,
the money to be secured by the issue. The
company claims that II needs the money
{ o carry on business, Out OF the u ,O0OO QUO
1t is planned to pay the looms made to the
company by the Buffers
Mr.. Tilford issued a statement from MS
apa rtments in the Walcorf-Astoria last
night in which he said that the charge had
been frequently and vociferously maze
that he was guilty of treacbery to the Uni
versal Tobacco Company in ehectinG a
sale of the Cay-Bock properties to the
Ha vana Commercial Company.
As the sale of TIE Clay-Eock properties
occurred in the spring OF 1902, and as he
had not been n director of the Universal
Tobacco Company since the fall OF that
H. g mt hnr q
acted right or not could have no bearing
on the question before Vice-Chancellor
Pitney--whether Mr.. William II. Butler
has been guilty of misconduct and mis-
management during the current year.
In a statement about the Clay-Bock
transaction Mr.. Tilford says that syndi-
cate was formed III the latter part Of 1901
to purchase a majority Of the shares Of
these companies with a view to turning
their over TO the Havana Commercial
Company.
This syndicate was underwritten for
Sl,0OO,on. II never accomplished it's OBJ
ject, ont subsequently another syndicate,
underwritten for 81 100000, was organized
fcr TIE sgme purpose. He and Mr. Gown,
u" save, were the syndicate managers, and
they surtteieo in acquiring the stock
cf tht CLAY and Book companies.
20 &c ;hia they were obliged to secure
:. large loan or he underwriting. Several
plNIL' LOT tlSl 'Ct'n III CI Lnt SJOCK were 'ilS-
cus,el bur il was necessary, whatever
plan was adopted, that there should be
c,.bh provided to pay OF this large loan.
Mr.. Tilford says that the Universal
TcSacco Company w9s not and never had
been in o position 10 furnish any such
amount Of cash rs would have been re-
quiced 70 pay even the actual syndicate
cost Of the stock, to say nothing Of price
large enough 20 AFFORD the syndicate
prcHt.
A sale OF he.o properties to the Universe
company lone. he saws. was never even
considered, although a plan by which the
Universal company should Join with The
Havana Commercial Company in the pur-
chase, WIS ~ one lime Under consideration.
The two companies, however, failed to
agree and Mr.. Tilford says that the syndi-
cate found itself in n situation where 1t held
the ownership of the Clay-Bocl; stock but
was liable uron loan Of approximately
81 500 600, and il would haze been necessary
for the members of the syndicate TO pay up
their subscriptions end take over their
pro rata of the Claw Book stock. unless
some sale could be effected
at was under these conditions" Mr..
Tilford declares that the syndicate man.
ayers received an offer from the Havana
Commercial Company to buy this stock
for s. 600 ono in cash, which was sufficient
to pay off the Indebtedness Of the syndicate
and give the subscribers n profit Of over
so per cent.
There can be no question but that a
refusal of the e-neptioned offer Of
the Havana Commercial Company for the
Book shares would have been wholly IN justi-
fable on the part of the syndicate managers
and would have subjected the syndicate
subscribers to a heavy loss instead of the
profit which they actually received
Mr. Tilford denies the contention ofCamille
WeiGenfeld that the syndicate profit was
greater fhaN he has TOautiCrpd The
members underworld 81 800 900, he SAYS, |
for which they We're not called upon to pay
in money, as Il loan was secured unGer the
underwriting anil the property resold for
$a,O0o,OOO in cash. The e.,act profits, he
says. all Of which have heen divided, are
the difference between 81 ,OGO, 900 and the
amount expended in acquiring the prop
critics