Los Angeles herald., 1906-09-02
Secretary Meyer of the General
Securities Company Has a
Word to Say and Says II
CLAIMS THERE is A PLOT
To Ruin the Company on the Part Of
Men Who Know That the Stan
dard Mines Are Good
Property.

The General Securities company last
night made a vigorous denial Of charges
made against the company through two
of the morning papers by men who 1t
is claimed seek to injure the company
and the other companies In which IL is
interested. for Interior motives.
Mr.. Meyer, secretary of the General
Securities company, said last night.
"The company wishes It distinctly un-
derstood that the daily press of Los
Angeles has been mislnformed as to
matters relating to the company and
other companies in which we are in
terested.
1.-THE General Securities company
wishes to go on record as denying all
of the injurious statements made in
the morning papers derogatory to the
affairs of the company. We daclare
that the matter is a diaboical plot on
the part Of those who have ulterior mo-
tives and further that the General
Securities company has nothing to con-
ceal and has taken steps to prove that
the conduct OF affairs of the company
has been regular and businesslilxe
in all matters.
Many stockholders in the company
have received threatening letters of an
anonymous nature, all of the most viii
lainous character, and these letters are
in the Office OF the company and speak
for themselves.
During the past year the Standard
mines have been developed to degree
that has excited the cupidity of men
whose sole vocation is to reap the BEN
efits of the abors of others, and their
ends have always been accomplished
by dishonest means.
1t has been stated that the title of
the company has and is a blind under
which Mr.. Holly and Mr.. Meyer have
organized various companies. AS to
that 1t may be said that the General
Securities company is an Incorporated
company, holding charters from the
state of California and the territory of
Arizona, and that the articles Of incor-
poration are regular and all books per-
tanning to the business Of the company
have been kept in regular and business
like form and are open to interested
parties We wish to state that so
far as an expert accountant finding a
misstatement of facts or shortage of
the funds Of the Standard Mines COM
pany, that 1t was otherwise and that
in so far as the matter of falling is
concerned, that every cent has been
accounted for.
Our auditing committee, consisting of
Daniel Potter of San Diego, who for
several years has been connected with
the audit department of the city of
San Diego; A. j. Plowman, manager of
the Witter water company, and H.
Sarrasin. a prominent orange grower
of Whittier and Rivera, was selected by
the stockholders of the company and
spent several days in the Office of the
company and after thorough investi-
cation of the books, gave a signed
statement emphatically stating that
the report made by the General Sc
curities company was true and correct.
This committee also stated that so
e.. -
is concerned, that Dr. Vaughn had re-
ceived every cent due him up to date,
with the exception of one note calling
for $1,000 which came due July 5. This
note fell due after DR.. Vaughn had alb
solutely refused to carry out his con-
tract with the company and naturally
the company contested payment of the
note, and further, not only had DR..
Vaughn received every dollar due, with
the exception of the note referred to,
but that we have every reason to be-
lieve that money has been received on
the sale of notes not yet due him.
DR.. Vaughn is now dealing with
other parties and is connected with
Theo. Metz and J. B. Hoffman in an
incorporated company known as the
Vaughn Ductile Metals company, and
| the Tempered Ductile Metals company.
on behalf of the stockholders, has
brought suit in the superior court pray
ing for an injunction against the
Vaughn company. This case was to
have been heard August 81, at 10 a. M,
but on account of the inability of the
sheriff's Office and a number Of private
detectives to serve the papers, the case
was not heard, and 1t is believed that
the men are in hiding or have left the
country.
In order to prove to the public. in
general, that the General Securities
company has conducted the business in
businesslike manner a committee or
five of the most highly respected repre-
sentative men of the city have associate
ed themselves and will appoint an ex-
pert to thoroughly examine the books
of the General Securities company and
all other companies in which it is in
| terested.
The committee is composed of gentle
men who have agreed to act in that
capacity. They are ]. r. Newberry
of the Newberry grocery company, J..
Goldwater of the firm OF Cohn. Gold
water & Co.; S. B. Crozier, presi-
dent of the Southern California Lumber
company and Chas A. Meyer. credit
man and treasurer of the L. A. branch
of the Fairbanks Morse company, and
C. A. McStay of the McStay Supply
company.
The report of the expert accountant
will be made to the committee and the
substance of his finding will be made
public by the committee and they will
| take such other action as they may
deem advisable.
The General Securities Company. BY
j. e. MEYER, Secretary.