The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-21
SUES TO 0YERTURN
SMELTER CONTROL
Karl Eilers Trying to Dust
Guggenheims, Alleging I'm
proper Policies.

An attempt TO Dust the Guggenheims
Simon. Daniel, hurry, Isaac and Solo
mon-from the control of the American
Smelling and Refining Company has
been begun by Karl Eilers, former direc-
tor and vice-president of the company,
who owns or controls 1855 shares of its
stock. He has petitioned the Supreme
Court for Il mandamus to allow him TO
see the stock book and take extracts
from it, Argument Is set for to-horrow.
Eilers says in his affidavit The
purpose for which l desire to inspect the
books and make extracts is to enable
me TO communicate with other stock
olders of said corporation in order to
consult with Ipem re ative TO change
ne management. of the affairs of the
corporation by tne election at the next
annual meeting OF a new board OF d.
rectors for said corporation"
The corporation has an authorized cap
ital stock of 100000. AS owners
of various smelling companies the Gug-
genheims refused TO enter the American
Smelling and Refining Company at its
organization, but in 1901 they Joined the
corporation. obtaining approximately
$40, 900. 900 of corporate stock, according
to Eilers. Daniel Guggenheim was made
chairman Of the Board of Directors and
three of the other brothers became di-
rectors In 1907, Eilcrs asserts. the Gug-
Genheims sold all but a small part of
/ their stock, but he says they continue to
dominate the board
Mr. Eilers is the owner Of 90 shares
of preferred stock and of Il shares of
common stock. purchased from the com
pany, and of 200 shares of preferred ac-
quired from the estate of Franz Fehr.
As one of the executors of the estate of
his father. Anton Eilers. one of the
founders Of the corporation, he controls
2.170 shares of preferred stock. Other
members of his family. of whom he Is
the representative. own 941 shares. His
attorney is William u. Goodbody.
After the sale of most OF their stock.
Eilers asserts. the Guggenheim brothers
ceased TO regard the interests of the
corporation and sought to employ it
solely To serve their own ends" He
quotes one OF the directors of the COM
pany as having said of the Guggen-
helms Simon snaps the whip and all
the rest have to jump" He stated that
Daniel. the retiring president, announced
in circular letter - the stockholders
in January. 1919, that 1t was the ex-
press wish OF the board of directors"
that Simon should be president. There
and Simon became president From 1907
to 1920, as n director. says Eilers, he
could not obtain the adoption OF any
measure in opposition to the Guggen-
helm brothers. lie speaks of the ma
jority of the board as dummies" OF the
all powerful brothers
The petitioner declares that Daniel
and Sol Guggenheim have been drawing
salaries of from $4,000 to $4,000 a
year while they were devoting almost
their entire time and attention to bust
ness matters not connected with the
affairs of the company" He is of the
opinion that the Guggenheims main
tanned their power ito reward the obe-
dent and punish the recalcitrant"
The complaint alleges that hurry
Ciuggenheim directed the sales for future
delivery i'm n rising market and that now
sales are withheld in a falling market.
The loss 70 the company by reason of
this business policy is estimated by
I.iers az $15.000.O00.