The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1908-11-08
WAS TO CONSIDER REPORT

Yesterdays meeting of the stock
holders Of the Carisa chemical company,
called to consider the report of a spe-
cial auditing committee, appointed a
few weeks ago to look into the affairs
Of the company and report on the al
legged fraud and mismanagement which
have marked its recent history. was set
for 2 O'Clock. Dudley and Meigs, how
ever delayed the calling of the meet
ing for nearly an hour by ushering the
various leaders of the opposition into
their private Offices for conferences as
soon as they appeared at the company's
Offices in the Marine building at Cali
fornia and Front streets. While the
crowd Of about so stock holders waited
impatiently in the general office, the
active heads of the company argued
in an inner room, and it was only the
evaporation Of the crowd. which finally
vented its feelings by stamping and
pounding, that caused the meeting
finally to be called. Even then it was
convened in star chamber session. Dud-
ley and AIeigs resorting to this meas
ure in an effort to prevent the pro-
ceedings from becoming public.
T. Norman Harvey. an active repre-
sentative of the stock holders, was
made chairman of the meeting and at
once the effort of the managers to de-
lay action became apparent through a
statement made by Attorney James II.
Boyer, counsel for the company Boyer
declared that none of the previous
meetings held by the stock holders
was legal because proper notice had
not been given and that the present
meeting could take no action for a
like reason. There was no objection
to a motion that a regular meeting be
held on the evening of November IS.
and it was passed, but the report OF
the auditing committee, which the
stock holders had gathered to hear,
Der of the committee, offered to read
the report. but it was decided to hold
it over for the regular meeting.
Before adjournment was taken, how
ever. Cutler reported that Dudley and
Meigs had signfied their Willingness
to compromise by agreeing to allow
the minority stock holders to name two
members Of the five composing the
board Of directors. He also submitted
stipulation, signed by Dudley, Meigs
and the members of the auditing csm-
mittee, proposing that after an ap-
prevail of claims against the Carisa
chemical company now held by Dudley
and by Meigs & Co. a settlement be
made by the transfer of the proper
lamount of stock in the company to
Dudley and Afeigs & Co. at 70 cents on
the dollar. The action of the commit
tee was Endorsed by an informal vote,
which it was understood should in no
way be binding or an admission that
any claims against the company were
valid. Chairman Harvey voiced the
protest by asserting that the vote
taken should not be construed as an
admission that the company owed any
thing.
ASK FOR INJUNCTION
The suit filed in the superior court
yesterday morning was brought by T.
Norman Harvey, represented by Attor-
ney William A Nunlist. Meigs, Dud-
ley and the members of the directory
/ board Of the concern were named as
! defendants, and in addition to the ac-
counting demanded an application was
made for an Injunction to prevent the
defendants from paying Dudley and
! Meigs & Co. the amounts which. the
latter claim are owed to them.
The suit sets forth that under the
regime of Dudley and Meigs the af-
! fairs Of the corporation have been sub
jected TO woeful mismana cement and
the allegation is made that fraud has
PLAYED a part in bringing about the
present financial tangle. 1t is asserted
that on October !, 1907 the total liabili-
ties OF the corporation were s1,6S6.3O
and that there was on hand $10.54O2O.
but that when the books were ex-
amined by the accountant of the audit
4 ing committee on August 81 of this
year they showed liabilities of s4S.-
1853, with nothing in the treasury.
This depletion, it is claimed, has oc-
CURED notwithstanding the fact that
there has been no development made
in the plant or property Of the com
pany The liabilities consist chiefly of
claims held by Meigs & Co., a corpo-
ration controlled by +. M. Meigs, and
claims held by L. c. Dudley, president
of the Carisa chemical company. The
suit further AYERS that there are no
vouchers or entries showing how
these claims were created and that
even If they were honestly created it