New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-09
A MYSTERIOUS MILLION
THE ICE TRUST MEETING.
CborOc That Dividends We're Pad
from Sale of Stock.

"a the American iNt Cpilpditsf III iNo 'A"''S
actions with the Knickerbocker Steam Towing
Cor,,snv. virtually sold its own stock 70 get
e onOOoO in its treasury. with which sum it
bad ,sfd dividends, was the charge made at the
Ice trusts annual meeting in Jersey City yes
terdav by James W. Gerard who held a proxy
for Hugh J. Grant and others. Mr.. Gerard was
referring to the purchase of the Knickerbocker
Steam Towing Company. John A. Sleicher'
who was Of the stockholders committee and is
now director admitted the first part OF the
Transaction 70 a Tribune reporter last night.
declaring. however, that he did not know 10
what purposes the money had been put.
As the stockholders report states" said he.
the American Ice Company bought the Knick-
erbocker Company in consideration OF an ex-
change Of stock and S1.OO0.OO0 in cash. under
stand from the expert accountant we employed
that the 81 900. 900 had been paid into the treas
ury"
Asked il the money had been employed to pay
dividends Mr. Sleicher said: II assume IT was
used for the ordinary purposes Of disbursement"
The directorate elected yesterday will proba-
bly, hold its first meeting to-day.
The annual meeting Of the stockholders Of the
American Ice Company held in Jersey City yes
terdav. was harmonious compared with the
meeting that preceded it. There were some
strong accusations and personalities. but the
acrinony was in homeopathic doses. The efforts
Of tine minority to establish reforms that were
intended to dvest the directors Of their power
and vest il I'm the stockholders were defeated
II was shown that it would be a violation OF
the statutes of New-Jersey.
The special committee that appointed
last wear submitted a report and recommended
a number Of changes in the bylaws TO facilitate
business deprive the president Of some power
and REQUIRE "A closer surveillance on the ac-
QUESTION Of property. Some OF the stockhold-
ers desired the continuance of the committee,
with the addition OF others. 10 go further In the
inquiry. and especially TO ascertain what had
become Of the 100000 that had been paid by
the Knickerbocker Steam Towing Company
when its stockholders exchanged their stock for
that Of the ice company. and took an additional
block Of stock. 1t was alleged that this transfer
had been made with colored man named James
as the nominal conveyancer; that II was merely
a scheme 10 defeat the law which prohibits the
payment of dividends out OF money received
from the sale Of stock. and that the money from
this acquisition of the towing company was
used TO pay dividends.
The committee had had enough. IT declared. Of
investigating as It had devoted practically the
entire year to it at a great personal sacrifice
and serious injury to pirate business. The
members added that under the regime they
were confident that the affairs OF the company
would be properly administered. motion was
made to have a new committee appointed. but
the motion was beaten. The promises concern
ing the new administration were kept. and only
ono man who served on the last board Of direct
ors was reelected. The exception was Wesley
NJ Oler who. IL ~ said. viii be elected pTesi-
dent to succeed President Schoonmaker. who
resigned.
The meeting was called to order by Vice Presi-
was 81
as chairman. There were nearly two hundred
stockholders present.
James w. Gerard a potent factor In the
voting. a. ne held three thousand proxies. In
Guiding that OF cx-Mayor Hush !. Grant lie
.zpIainee the absorption ~ the Knickerbccker
Towing Company. This company. through John
4. James. took 1883 shares each Of the COM
mon and the preferred stock OF the ice com
fauv Of the par value 81 S2.Jip6po. and paid
for IL With JGO5 shares OF the towing company,
of the value OF SJG0GOO and S1OOO0OO in cash.
which was turned into the treasury ~ the ice
company between April and May $. 1901 Mr..
Gerard asked II the investigating committee. OF
which John \. Schleicher was the chairman. had
ascertained what disposition had been made OF
the money. Mr.. Schleicher said that the com
nittee should have been apprised OF this trans
action months ago. that II had ascertained that
the money had reached the treasury. but II
had gone no further. as IL did not have the time
20 go into all the details. but would have made
the inquiry IL Il had known that there was any
suspicion about the proceeding.
Mr.. Gerard added that he understood the
money had been illegally used to pay dividends
and that the entire transaction was queer. as
James was a porter in the office OF Poor q
Greenough.
This brought Mr.. Greenough to his feet. He
entered "A vigorous protest against his name
being dragged into this alleged transaction.
The reading Of the minutes of the preceding
meeting provoked jeers when the rosy report
Of President SHOEMAKER was reached Vice
President OIer read the presidents report for
last year II attributed the bad season to cool
weather that prevailed in tho summer.
The report Of Treasurer T.. d. Haley showed
n deficit. IL follows:
ASSETS.