Bisbee daily review., 1915-11-14
IS MAOE
DEFENDANT IN
BIG SUIT
Clarence A. MaCkay, of Telegraph
Fame, Sued BY Claus A. Spre-
GELS, Sugar Millionaire, in Co.
ChSe Superior Court.

TOMBSTONE, Ariz, Nov 13-
(SpeciaD Charging Clarence A. Mac
kay. head of the Mackay telegraph
and cable companies and William w.
Cook, general counsel for the Mackay
interests having persistently blocked
the development of the property of
the property of the Federal Planta-
tions company Of which he is presi-
dent, Claus A. Spreckles, president Of
the Federal Sugar Refining company
of New York today filed suit in the
superior court here against the Fed
eral Plantations company, and Mackay
and Cook. the controlling stockholders.
/ Spreckles asks that a receiver be ap-
pointed that the affairs of the COM
pany be wound up, and the property,
consisting of 10000 acres OF land in
Cuba be sold Suit was filed against
the company last week by the attor-
ney general of Arizona, complaining
of violations of the corporation laws
of the state, under which the company
. is organized, and asking that it be
dissolved
/ Spreckles complaint sets forth that
since the company was organized
thirteen years ago it has taken no
steps TO cultivate or develop the land,
or otherwise to turn it to account, and
that the land has deteriorated through
it's practical abandonment A major
ity OF the board of directors, he
states, are ready and anxious to pro
ceed with the development of the land
and the cultivation of sugar cane. but
that Mackay and Cook, who hold the
majority Of the stock have persistent
ly refused to concur or cooperate in
any action proposed, or to sell the land
at a profit Spreckles further alleges
that since the formation Of the com
pany it has devolved on him TO ad
vance funds for the payment Of taxes
on the companys property, and salary
of a watchman to care for the land
and that the company is now in deb
to the extent Of several thousand dol
lars which it is unable TO pay.
In 1902 Spreckles, Cook, Mackay and
p b j. Honacker acquired 10000 acre.
I of land i'm the province of Camaguey
I Cuba, the first three named holdini
Z each thirty per cent interest and Hot
2 acker ten per cent At Cooks sugges
s tion they organized the Federal Plan
Z tations company, which was incorpol
e ated under the laws Of Arizona wit
e a capital stock of $4,000 600 Half O
the stock was then issued to Sprech
~ TTaFFaPlrar ID
e four incorporatOrs, and the remainder
retained as treasury stock In 100
Honacker sold his interests in th
company TO Spreckles and retired froI
the directorate, which is now con
IS posed of C. A. Spreckels. Clarence
L. Mackay VIM w. Cook, Pierre
+ Smith and Charles T. Bingham.
t. The purpose for which the compan
st was formed says the complaint wa
m substantially to acqui lands in Cut
n and elsewhere for the cultivation (
70 sugar cane; TO construct, acquire an
operate sugar factories to manufa
ie ture, refine and sell sugar, molass'
d. and other materials and i'm general
k carry on the business of producing, 7
g. fning and selling sugar. The certi
r. cate or articles Of incorporation do n
ne provide. says Spreckels, that the CO
nd poration should have the power
-e. holding land indefinitely for inve
ment or speculative purposes or
s- any other purpose than for the cul
he vation OF sugar and the conduct Of
la active sugar business.
er In 1911 Spreckels proposed to CO.
". that he and Mackay cooperate wi
In him in raising funds 10 enable the co
Continued on page three)