The Barre daily times. (Barre, Vt.) 1897-1959, 1905-12-02
Is HIGHEST AWARDS IN EUROPE AND AMERICA

that city. The suit was started by
Maria g. Warren, widow OF the late G.,
c. Warren, and ID. J. Mackey, as execu-
tors Of the will of G. G. Warren. 1t was
declared in the petition that the man
ager, Mr.. L. G. Read, had endorsed
paper aggregating $35,000, and that the
company was mismanaged and so heavily
in debt that it would become insolvent.
The petitioners asked for the appoint
ment of a receiver to protect their in
terest. The court had appointed H.
w. Parsons receiver, and the defend
ants Immediately filed motion for a
| dissolution of the receivership. Mr.. H.
B. Warren, son of the dead president
of the company, told of the contract
by which machines were delivered to
realized being the agents commission.
On one contract known as the Mont
pelier contract, the price paid was $22,-
700, while the company secured only
$14,062 The remainder was the agents
commission. The sale was made by t.
q. Reed, who IL manager Of the com.
pany, as there was credited to him, as
commission, S6,7s0, of which $3.50 was
paid in cash, although the machine was
not yet completed.
When Mr.. Read took the witness
stand he told Of sale Of a turbo-
generator to an eastern light and power
company for 1850. The Warren COM
pany got little over $4,000 for the
machine, but MIR. Read as agent, did
not get the rest. He said that be
dickered long time with the president
of the power company, naming both the
company and the president, and the pres
ident finally agreed to let the contract
to him Ii the sale was made on q basis
OF $i9,500 as actual cost, to be billed
in to the company for 1850 and
the president to get the difference as
a Arake-ofi" II was 50 ordered and the
president was sent q present of War
rem Electric company check for ST.
I25o.
/, AS to the matter of getting loans,
Mr.. H. b. Warren testified that for
S., 500 borrowed from the Euclid Avenue
Trust Company of Cleveland, the trust
company charged the market rate Of in
terest, took $3.50 in bonds as collateral
for every dollar borrowed and in addi-
ton charged 10 per cent for making
the loan.
As the result Of the hearing, Receiver
Nv III. Parsons was removed and james
Flynn, r. +. Schuek and John Whit.
worth, three bankers, we're put in charge
of the plant to operate it under the
courts order. The resignation of L. G
Read as manager was at once demanded
Judge Reed, who tried the case. sale
that he had no doubt that under thl
management of the late e. G. Warner
the business grew and the concern pros
pered. He designated it as poor bust
ness" when Il. q. Read was made man
! aged following Mr.. Warren's death. MI
Read was, prior to that time, selling
agent and only short time prior Il
Mr. Warrens death made a Iong-tim
: contract for the entire output Of th
Warren company's plant. His subse
quent election as manager of the plan
made it so that he fixed the price a
which the eompany's products we're sol
to him.
In regard to the S2,250, Manager Rea,
admitted ON the stand he had allowed
the president of purchasing corpora
ton, Judge Reed remarked: Il wa
shocked at the statement of Mr.. Rea'
that he deliberately paid the presiden
of this company S2,2s0 as an induce
ment to buy. It may be the usua
thing in business, but / give very littl
credit to the word of man who admit
he bribed an officer of another corpora
ton. lie does not come into c0ur
with very clean hands and is entitle
to very little consideration at my hands.
An effort was made by Mr.. Read no
to have his testimony in regard t
the bride 20 on record. lie asked tn
court to have it stricken out "Ml
Read" was the courts reply, Il wi
have you understand that everything i
this court is open and above board an
there will be no embarrassing here. Th
record will stand"
The court commented unfavorably o
the fact that the company had foun
it necessary to pay bonus of 10 pc
cent in addition to the customary III
terest in order to float a loan. ut cel
tainly shows that the company's cred
was exhausted, or there was very poe
management said the court, "if it wa
necessary to give a bonus of $4,000
order to secure a loan of $4,000, d
has been testified to"
In conclusion the court said he though
the company should be paying instit,
ton. He remarked that it seemed quce
to say the least, that small bills f
two or three dollars would be refuse
payment, when the manager was pa
$4,000 Is commission for sale al
the president of buying company
bribe of $4,000. ssThe management
Mr.. Read has been detrimental sa
the court. ssfor the benefit Of fe
individuals getting rake-oii."