The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-11-01
With Gift Stock Michigan Man Serves as Director of
Lumber Company Whose Promoter Is In-
dicted for False Pretenses.
FATHER HANNAH CLAIMS HE Is OUT $4,000
Member of Congress Permits Name to Be Used by a
Concern That Was Scored From the Bench
by Justice Clabaugh.

As startling the revelation of his intimate relations
with the organ of the Washington gas monopoly came the
proof last night that representative Samuel w. Smith,
asking for reelection from the Sixth Michigan dis
trc has for years held gft stock the discred
tied National Lumber Company incorporated the Dis
trict of Columbia. 1t is shown:
That Representative Smith paid nothing for this stock
He allowed the of his and title, however the
prospectus
That on the same day the stock was given him, Mr..
Smith named director and trustee of the lumber
corporation.
That he not dummy but an active director
in its affairs now under investigation by the District Su-
preme Court
That the promoter who gave Mr.. Smith 400
shares Of National Lumber Company stock today under
indictment for false preenses to another stockholder
priest who yielded up approximately $4,000 in hard cash.
believing the investment to be bona fde and legitimate
proposition.
NOT A DUMMY DIRECTOR
As evidence that Representative Smith was an active
and real director, rather than dummy official those
most vay interested in the apparently hopeless task of
reaching satisfactory adjustment of the companys a
fairs know:
That when notified that this disappointed stockhoder
had sued for the recovery Of the money obtained Mr.
Smith instrumental in extending through the receiver
for the offer many thousand dollars below the
money invested, which was refused
That this offer two days before Representative
Smith left Washington to begin his present campaign in
Michigan for reelection.
That the priest declined to withdraw his suit and that
instead the grand jury will be asked go thoroughly
into the affairs of the National Lumber Company and the
manner in which it merged into the Southern Conso
dated Milling Company, of South Dakota
That Representative Smith has retained the stock
given him.
1t is matter of company record that Mr. Smith at
tended several directors meetings. voting upon resolutions
affecting its management, in particular authorizing
the underwriting of $4,000 of its stock
OTHERS SENT STOCK BACK
That Mr. Smiths action in accepting the proer of 400
shares Of free stock not accord with that of other
public This is evidenced by the fact that one Justice
of the Supreme Court of the District two United States Sen
ators and noted preate to whom stock was issued
gratuousy by the company returned the certificates
These certificates then marked as returned or
Cancelled"
The prospectus of the original company the National
Lumber Company, well the later prospectus of the
merger company, the Southern Consolidated Milling Com
pany displays prominently the name of Samuel w Smith
owner of the free stock of its officers and drec
tors.
Organized with $4,000 shares of the par value of S.
each the promoter is shown to have retained all except
$4,000 shares the latter block with par value of 500
being turned into the treasury
Slightly more than $4,000 worth of this stock was
soid the Rev. Eugene A. Hannah, purchasing the bulk
thereof or 5000 shares at the par value of So It is upon
the representations made at this sale that Promoter Robert
d. Partridge also donor of the Smith stock was indicted
for false pretenses.
1t was in attempted settlement of the Rev Mr. ffan
mans large cash claim thaS it understood that during
the past summer after the appointment of receiver for
Continued on Sirtb psosA