New-York tribune., 1909-09-10
WIDOW MADE CHARGES
Forced ont of CrdnddN s Cooley
Co.. She Soys-ReceiUer Named.

Justice Lehman. of tho Supreme Court appointed
q receiver yesterday for the Crandall & Cooley
Company. manufacturers of bakers and confection-
ers' supplies The action for the receivershp
brought by Mrs. Elizabeth Mem Cooley whose hus
band founded the firm. She seeks to restrain the
directors from reducing the capital stock from
100000 10 $4,000. Her counsel said that Mrs.
Cooley had been forced out of the concern and de-
prived of more than 100000 in dividends and in
tercst in the last twelve years Counsel argued
that the company had $500 900 cash In bank and
assets OF 100000. Justice Lehman appointed
Charles \. Moran receiver. requiring him TO file a
bond for $500 600.
The company founded in 1871 by William %.
Cooley and Benjamin Zesler a contributor 10
funds for expeditions in search OF the North Pole
William Crandall, the first partner OF Mr.. Cooley,
had retired. and when Mr.. Zieglerl later left the
Arm Mr. Cooley took in one of his employees, Ly-
+. Petteo. as Il co-psrtner in 1892. II
ganized az New Jersey corporation later. and in
1895 changed 20 New York corporation as the
Crandall & Cooley Company.
David Bennett King and William r. Osborn
counsel for Mrs. Cooley. who lives in the summer
at Magnolia. Mass. and in this city in the winter.
told the Court that Mr Pettee had been advanced
by Mr.. Cooley until the latter finally permitted him
10 own one-half OF three -fourths Of the capital
stock which consisted Of s10o 600 preferred and
5000 600 common shares. Mr.. Cooley retaining the
other half OF three-fourths. The remainder. they
said, vas distributed among old and faithful en-
ploves. who were allowed to subscribe for II.
Mr. King said yesterday regarding the action
Mr. Cooley I'll and away from his business
In 1897. Pettee being In charge vice-presdent
and treasurer at salary OF 1900 When Mr.. God
ley returned 20 the ofce thres four months later
he found that Pettee had called meeting of the
directors. had deposed Mr.. Cooley president and
elected himself in his place and refused TO per-
mi; Mr.. Cooley representation the board OF d.
rectors. which was controlled by Pettee and
Mr. Godley's former employees. Mr. Cooley soon
after died.
Since lSSi the business has been absolutely IN
control OF Mr.. T.tt'r. and ne refused 10 permit
the widow reprc t1isi the board of directors
or in tho active fgement of the business. TO
which her stock entitled her. Mrs Cooley received
an annual dividend of per cent her stock. Pet
tee and the employees who had now become directors
received similar dividend, but In addition they
voted themselves additional salaries TO amount
that equalled per cent dividends. making pay
ments to themselves OF amounts equal is per
cent dividends their stock. We say that this
money improperly paid salaries, and was.
In fact. dividends
Last January there was a Are In the warehouse
OF the concern and insurance money collected
10 the amount of si95.Oro. Pettee had two sons,
whom he took into the business, William G. Pet
tee. who became treasurer and Lyman r. Pettee,
who was placed in some minor once. The bust
ness was then removed TO Renwick street. The fire
occurred January z and on January H. Il ap-
pears. the business was reorganized under new
company called the Crandail & Pettee Company"