New-York tribune., 1909-06-04
DUDLEY'S NEW ATTACK
PLATT MIKES DENIAL.
Officials Say Suit for Z. S. ErpreSs
ReceiCerShip Is Malicious.

John L. Dudley returned yesterday 10 the legal
attack that he has been directing against the
United States Express Company. IN which he owns
one hundred shares OF stock. lie appeared through
MS counsel Frederick Il. Sanborn, before Justice
Guy. in the Supreme Court. asking for the ap-
pointment Of receiver for the express company
and the dissolution ot ;he association
The principal features Of yesterdays proceed
ings We're the oral arguments of Morgan J. O'Brien
for the defence and the submission OF affidavits
by ex-senator Thomas {. Plat, president Of the
company: Chauncey II Crosby. vce-president and
general manager. and Francis Lynde Stetson. Of
the board Of directors. all defendants in the Dudley
action. in which they deny the charges that the
officers and directors have failed to perform their
duties. that they had conspired to njure the
company to benefit competitors. declaring that the
association has been managed for the best inter
O. tie shareholders, and that the charges are
reckless. malicious and contrary TO the facts.
The hearing on the receivership application also
brought inside facts relating the affairs
Of fhe United States Express Company One Of
these contained in the argument OF ex-Justce
o'Brien that these attacks made on the company
have already resulted in Interruptions to its Euro
pean business in connection with its extensive money
order business. The Hamburg-American Steam
ship Company lawyer said, had intimared TO the
United States Express Company that It will take
any money orders from the latter in the future
The express COMPANY, he pointed out, may lose
considerable amount of money through the attacks
IN court
Another revelation Of the inner workings Of the
defendant company in the affidavit Of Francis
Lynde Stetson, telling how he TO enter the
directorate of the United States Express Company
Mr. Stetson deposed TO the effect that he became
director in April Isl on the invitation of Frank
H Plart and vas elected to offset any possible in
Huenoe or interest of Levi c. Weir, president of
the Adams Express Company. and James & Fargo.
president Of the American Express Company, who
had entered the United States directorate This
statement was in contradiction Of the charge Of
Dudley that the election OF Weir and Fargo 10 the
United States Express board worked to the injury
CT the latter and the benefit of their respective
companies. and which. it was charged, vas con-
sparacy.
INSOLVENCY NOT CHARGED.
There was a disavowal in the argument OF
counsel for Dudley Of any charge that the de-
fendant company was insolvent while eX-Justice
o'Brien said that it had assets Of s1o.oooooe and
that since the actions were begun s5,ooo.ooo in
earnings had been added to the credit Of the COM
pany- Mr. Dudley charged however that the share
holders had voice in the management OF the
company. He further alleged fraud, dishonesty
ma waste. Mr.. O'Bren characterized them all as
.vvilfu and malicious attempts not only upon the
financial standing but upon the very life OF the
company
Going into the connection of Weir and Fargo
with the United States Express Company. counsel
for Dudley explained that prior TO 1901 the Balti-
more & Ohio Railroad had executed contracts with
the United States Express Company, and that the
railroad company had acquired twenty thousand
shares OF stock Of the express company. The
Pennsylvania Railroad took over the Baltimore &
Ohio Railroad and sold the stock Of the express
company. half 20 the American Express Company
and half 10 the Adams Express Company, and their
presidents became members Of the board of direct
ors Of the United States Express Company The
election Of Weir and Fargo the board of direct
ors, Mr.. Sanborn said was followed by loss Of
business the United States Express Company
In explaining the conspiracy charge Mr.. Sanborn
hat III 1arrS ND Slx hPl
hundred shares Of the stock, the Baltimore & Ohio
Railroad twenty thousand shares, while the rest
Of the stock divided among fifteen thousand
shareholders.
holders in thirty-seven years. declared the law
lyer, land if the stock owned by the Baltimore &
Ohio Railroad had been sold in the open market
there would have been little difficulty in the other
shareholders getting possession Of the stock and
then calling meeting for the election Of board
Of directors
AIr Sanborn said the United States Express Com
pany lost the contract on the Lake Shore Road and
the American Express Company got IT, He wanted
10 know how Mr.. Fargo would explain that.
THE United States company lost the ST. Paul
contract May 1 and it went TO the Wells Fargo
Company II was the largest contract the United
States company had. We don't connect the Wells
Fargo Company with this matter said the lawyer
''but We do say that the United States company
lost the contract and the Wells Fargo Company
got it.''
HOW WEIR AND FARGO WERE ELECTED.
Mr. O'Brien said cf the election of the president
Of the American Express Company $ member Of
the board Of directors that the American Express
Company bought six thousand shares Of stock in
the open market and that articles Of any assoc-
alton could prevent il. Weir and Fargo. he stated.
owned shares in the United States Express Com
pany and Were entitled to be the board of direc-
tors
IF IS the president Of a bank is that any
reason why he should not be a director in another
banke" asked the former justice in explanation Of
his argument The situation is the The
only question is, there anything done by Weir
and Fargo that for the best interest Of the
United States Express Company There is proof
ehat they did and the evidence IS that in
years the company has grown from 100000 10
s1sGOo.50O year
IN answer 20 questions by the court how the
United States Express Company lost the Lake
Shore contract. counsel said that was NOT lost
and that -he New York Central made the change
because II desired the express business between
points the Lake Shore road and Eastern points
10 20 over the New York Central The United
States Express Company, he said, made other
/ ssfactory arrangements for The through business.