The San Francisco call., 1908-11-07
Carisa Chemical Company, Hall
Million Dollar Concern, Torn
by Charges of Fraud
Special Auditing Committee
Makes Report Which Stirs
Minority Stock Holders
Iron Rule of Manager F. NJ.
Meigs Causes Demands
for Explanation
Extravagant Prices for Materi-
ais and Purchase of Auto
Said to Be Allegations

dis dilu uANHdSG vi AutO
Said to Be Allegations
OAKLAND, Nov. 6.-War
has broken out among the
stock holders of the Carisa
chemical company, a $780,
900 concern of San Fran
cisco. The report of a spe-
cial auditing committee appointed
by minority stock holders is ex-
pected to disclose details of the
business which will require ex-
planation. F. NJ. Meigs, man
ager and chief stock holder in the
company. is the center of attack.
A meeting will be held at the Of
fees of the company in the Ma
rine building in Front street Sat
urday afternoon at o'clock. at which
time report will be made that is ex-
pected to force the battle into the
courts.
Minority stock holders. representing
s165. 600. declare that Meigs has domi-
neered the company and stock holders
to such an extent that he has con-
Quoted the business of the big con-
Germ though no other stock holders
were in existence and that he had paid
out large amounts of money without
having given the complaining share
owners accounts to show what the sums
were for. 1t is charged that he bought
an automobile for himself out of the
company's funds and paid too heavily
for machinery and other supplies for
the chemical plant. which is located
near Bakersfield.
HAS 400 STOCK HOLDERS
There are 400 stock holders Of the
company located in various bay cities
and most of them have long been want
ing auditing of the books of the
concern. Several stock holders in Oak
land said today that Meigs had pre-
vented attempts to secure some Of the
books and at a meeting two weeks
ago told the stock holders that he
proposed to run the affairs OF the COM
pany to suit himself. Several of those
| attending the gathering nearly came to
blows.
The minority stock holders represent
shares of stock valued at s165 600. pur-
chased during the four years since the
company was formed. at 40 and so cents
n no
stock valued at about 100000. and the
president, E. c. Dudley, controls $780,
900 shares of this stock.
Meigs is said to control the president
and is credited with appointing a board
of directors that allow him 70 rule.
among the members being his brother.
A. W. Meigs.
The auditing committee was ap-
pointed over month ago. said J. A.
Naismith of Oakland, who is a stock
holder. ''It is composed OF A. D. Cutler.
H. A. Copp and j. W. Wilcox. They
have had a difficult time securing evil
dence of how the accounts of the con- O.
Germ stand and after getting what facts
they could they made report two
weeks ago which ended in a row. Meigs
grew angry and said that he would run
the concern in any way he thought MT.
The partial report of the committee
showed that the bills payable for 1908
exceeded those OF last year by about
$4,000.
AUTOMOBILE FOR SELF
"In most cases there was no mention
of what this money had gone for. but
in one good sized item was the mention
of an automobile for the use of Man
ager Meigs.
when Meigs took hold of the con-
Germ four years ago everybody had
faith in him because 1t was thought
he would carry things along success
fully He was so confident OF the sue
cess he would create that he volun-
teered to manage the concern without
salary, and would be content to get his
returns from his stock dividends. Ac-
cording to the books he has voted him.
self $4,000 a year salary. totalins
$4,000 for the four years.
There will be a lively meeting to-
morrow, and many of the stock hold
ers will be present. This will be diff
ferent from meetings called by Meigs
and his picked few when they de-
cided to do anything they pleased with
out notifying the stock holders. The
report OF the auditing committee, as
complete as 1t can be made under such
conditions, will be read to the stock
holders, and it is probable that some
unusual action will be taken"
w E. Barnard. who was stock sell
ing agent for the firm in Oakland for
nearly a year. told OF the finding OF
huge deposits OF sulphate OF soda in
its natural state in the Carisa plains.
about rs miles east of San Luis Obispo.
by eastern people. He gave a history
Carisa chemical company to put the