New-York tribune., 1911-03-04
LEATHER MINORITY L0SES|
Court Won't Name Master to
Conduct CentraI'S Election.
WIN ONE POINT. HOWEVER
Company May Not Vote Bor-
rowed Stock-Some Demands
Nav Be Granted,

The minority stockholders OF the Cehtrai
Leather Company lost the first rouho Oh
their fight with the management !es.er~
day when Vice Chancellor Howell, OF new
Jersey. refused TO grant the application OF
]. s. Bache & Co., representing the minof-
wy interests, for the appointment or
master IN chancery TO conduct the annuai
election and removed the temporary IN
junction obtained by Bache q co. last
Tuesday, restraining the management from
holding the annual meeting.
The Vice. Chancellor upheld the conten-
ton Of the Bache firm that the voting ol
fifty thousand shares OF borrowed stock by
the Central Leather Company would be
illegal. but said that owing TO the fact that
the management, according TO its afidaVlt'
controlled 10000 shares OF stock. he would
not take the Atty thousand shares OF bor-
Yowed stock into consideration in deciding
the case. and would not, therefore. enjoin
the election on this ground.
While the court failed 10 make clear
whether or not the management could vote
this borrowed stock at the postponed an
nual meeting, 10 he held this morning IN
Jersey City, Henry Wollman, counsel for
the minority interests, does not believe that
81 will be voted.
"In my opinion" he said, while Vice.
Chancellor Howell did not enjoin the voting
OF the so-called borrowed stock. the Cen
tral Leather Company. IN view OF the fact
that he ruled that the voting OF such stock
would ne illegal, will not attempt TO vote
the stock at the meeting If the manage
rnent do attempt TO vote the stock, how
ever. We intend 10 challenge in every way
. kntr ~ff H. md xf~fn as.or
share of it."
In refusing 10 grant the request Of the
minority representatives for the appoint
. nIent Of master in chancery 10 preside at
the meeting Vice-Chancellor Howell held
. IN substance that any stOckholder had the
right 20 appeal 10 the court from the de-
cision OF the appointed inspectors OF cleo
tion, who In this instance are three en-
! ployes Of the company. The fact, that the
bylaws Of the company give these III
; spectors full power on all questions touch
ing the qualifications OF voters. the validity
OF proxies and the acceptance or rejection
OF votes, does not. the Vice-Chancellor
holds, prevent the right Of appeal from
their decision.
This decision, Il was pointed out. opens
, the way FOR the minority interests 10 OBJ
tain judicial determination OF the cleo
tion II they are not satisfied that they have
received impartial treatment at the hands
Of the election inspectors.
J. :. Bache & co. did not appear a bit
cast down by the fact that the Nice-Chan-
cellor had decided against them In the
injunction proceedings. The fact that he
had decided that voting borrowed stock
vas Illegal and that the decision Of the
election inspectors appointed by the man
asement was subject TO review by the
courts, they regarded as practical victory
FOR their side. They will enter the meet
ing to-day prepared TO night 10 d finish for
their demands. which include representa-
ZION for the minority interests on the beard,
greater publicity In the company's affairs,
certain economies in the management and
perhaps dividends on the common stock
II was reported In well informed quarters
that the MANAGEMENT was ready 10 grant
'he demand OF the minority for greater
publicity as regards earnings etc, but
whether they would go any further than
this 70 meet the minority stockholders could
not Le learned