The Washington times., 1913-01-06
Redfield Interrupts.


through him, the right to examine into
every article"
Redfield Interrupts.
Mr.. Redfield interposed, asking: why
do you object to our questioning upon
these matters if you are going to dc
all that?''
Il object to it on this ground, MI
Redfieiu." answered Douglas.
If you are going into each. and every
side issue and collateral matters that
could be anticipated here, this commit
tee could be in session for twelve years,
unless you intend TO drag into the al
fairs of the, investigation the private
affairs of eTery other corporation and
every individual and not allow them any
opportunity 10 defend themselves.
THE purpose of the inquiry" said
Redfield, lis to investigate the history
of some of their associates. representa-
tives and agents, leading up to the
transaction of the increase in value OF
the Southern Building within few days
after its purchase for something over
S400, ,O00."
Aim of Inquiry.
Mr.. Douglas replied: That is the
crux of this whole matter. the scope of
this inquiry, as is stated by Mr.. Red
field, but with all due respect to him,
/ submit that he has misinterpreted, to-
gether with the associates. representa-
tives, ard agents That is, the 'asso-
ciates, representatives, and agents OF
the fire insurance companies, and Tuttle,
Wightman & Dudley. In no sense-and
j now throw down the challenge-in no
sense are the Southern Building Corpo-
ration and the Richmond Realty Corpo-
ration, who have bought some of these
bonds. or their agents, Representatives
or associates, now or at any time in the
past, and to go In to the private af-
fairs OF corporations buying those Sc
curitias, now holding and owing those
securities. is to lay bare upon this table
the private affairs Of corporations. and
/ submit with all Difference to this
committee is beyond its limits and be-
yond its scope, and beyond its right.
Any question that can be asked that
will throw light upon the question,
either of the cost of the land or cost
of the building or the present value
Of them, taken singly or collectively,
is well within the limits of this in
quiry, and perfectly germane to the
ging into the affairs of this investiga-
tion the private affairs of other peo-
pie, and 1 think their rights ought to
be respected, and will be respected.
by this committee"
Mr.. Redfield replied: Mr.. Douglas.
YOU appear as one of the officers Of
the Southern Building Corporation, in
what is alleged to be its original char
ter. Mr.. Carusi is alleged to have been
one of the special committee acting as
counsel of the Commercial Fire In
surance Company in the purchase OF
ing Corporation, of which you were a
director.
Plan To Bare Details.
This committee desires to show in
detail the whole transaction in which
you and Mr. Carusi were associated,
you, on behalf of the Commercial Fire
Insurance Company now, he as on their
behalf now, he in the purchase Of this
building from the corporation Of which
you were a director then, and you.
corporation which purchased the build
ing from parties with whom II Is i'm
portant to know who was associated
We intend to know, or ought to know,
in my Judgment. the whole transaction.
from fits beginning up, who are the
parties interested, what profits have
been made, whether certain stockhold-
ers were forced to sell at 25 cents on the
dollar, whether others by knowing the in
side tracks, sold for so cents on the dol
lar. whether those securing that were
not themselves in a measure defrauded.
These things may not be true. We hope
they are not, but we ought to know
them all, and IL can do 1t. am going
to find II out"
Retort of Douglas.
Attorney Douglas retarded: Now,
Mr.. Chairman, / make this statement
here now. that the suggestion of Mr..
unless 1t is backed up by the
facts In this case, is. to say the least.
mittee is not sitting as court of equity
and a court of conscience, to try quar-
rels that may grow out of the con-
scientious differences of opinion or any
differences of opinion between the stock
holders of the Southern Building Cor
poration and the corporation itself.
''If we start an inquiry of that sort
there will absolutely be no limit to this
I do wonder for one moment If any
body here will sit here quietly and
without protest and hear any suggestion
made OBJ besmirching anybody unless
they ask leave of this committee to
have the same leeway and the same
unlimited right to eb heard in defense
Of the charge against them. or the sug-
gestion made against them.
This committee has nothing what
ever to do, l submit, with whether or
not one stockholder sold at % cents
and is satisfied. another one at 50 cents
and is satisfied
Cost of Big Building.
Bakers preliminary statement re-
yarding the Southern Building Corpo-
ration, which brought on the tilt be-
tween Attorney Douglas and members
Of the committee. traced the history
Of the building from the time of the
purchase of the st. Matthews Church
property to the last meeting of the di-
rectors.
Baker said he thought the ground cost
he corporation about $3.50 foot. or
,41e. 600 for the plot. He did not recall
who held the option. Continuing. he
said:
THE first mortgage was $4,000. The