The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-06-26
CHARGES OF FRAUD
ARE NOT SUSTAINED
Allegations Against California
Navigation Company Manag-
ers Have Not Been Proved
Especial Dispatch 10 The Call

STOCKTON. June 25.--L. Bleakmore,
who has been making extravagant
charges of mismanagement on the part
of the officers of the California naviga-
ton and Improvement company. SUI
fered another setback today, when
Judge c. w. Norton refused to hold
Secretary S. P. Elliott in contempt for
refusing to permit Bleakmore to make
a further investigation OF the DOCKS
OF the steamship company.
A sensation was caused in CONNER
ciaI circles a few weeks ago, when
Bieakmore first appeared in this city
with a demand that he be permitted
to inspect the books. After being re-
fused permission by the company ne
secured an order of court on show
ing that he possessed FIVE shares OF
stock.
CLAIM OF IRREGULARITIES
Bleakmore carefully inspected the
books and prepared a report In when
he claimed that there had been many
irregularities in the conduct or the
business. Among other things he
charged that $4,000 had not been
properly accounted for, that dividends
amounting to $4,000 had been de-
clared. while loans amounting to $41,-
600 were negotiated by the company,
and also that thousands of dollars had
been paid in rebates by the company.
Two state commissions have been in
volved In the navigation company tam
gle, the bank commission in connection
with loans secured from local banks
and the railroad commission in con-
neetion with the rebating.
1t is said that after the bank COM
mission had stepped in because the
loans were made without collateral.
Bleakmore became active and began an
investigation of the affairs of the COM
pany. According to his report, numer-
Gus rebates were paid to the Stockton
pmilling company, of which Elliott, the
secretary of the navigation company,
is president He also claimed that re-
bates had been paid to the Sperry
-four company of which Ward Smith Is
manager.
WANTED OFFICERS INDICTED
Bleakmore returned the first of the
week asserting that he represented a
majority of the stock holders and that
he intended to have some of the off,
Gals of the company prosecuted for
their conduct He sought District At
torney George F. McNoble and S. B.
Coates. foreman of the grand jury, and
laid before them all the facts he had
RdbH6IeQ- re vas itOPCAut tiistt tAC
grand jury would begin an investiga-
ton.
McNoble and Coates today made an
investigation of the books and de-
clared that there was no indication OF
any crime having been committed.
The navigation company today re-
ceived a letter from Harvey d. Love-
| land of the railroad commission to the
/ effect that the rebating In question Was
not in violation of the law. IT appears
! that the company has been charging
rates from certain river points to CON
| form to the railroad rates and then
making rebates to insure to the ship
pers the river rate.
RETURNS TO SAN FRANCISCO
After Bleakmore was turned down
! by Judge Nutter today he departed for
| San Francisco. 1t is not known
whether he win make a further at
| tempt to secure the indictment of the
/ prominent businessmen of this city
who are identified with the navigation
1 company.
Attorney Dewitt Clary representing
more did not represent the stock hold
ers and that his motive was probably
! to depress the value of the stock in
| the interest of prospective buyers. He
! said that the loans were negotiated
/ in the usual course of business and
that the company had legitimately
earned the profits indicated by the div
! idends.