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THE MUSIC TRADE REVIEW.
Justice Beekman dismissed the complaint
The disturbance of trade which now pre- commercial and industrial interests as it
that
were made to secure the
has been in disturbing trade, depressing good expenditures
vails is for a time, not for all time.
will of artists and to secure testi-
A little patience and a fair degree of commerce and unfixing values, a national monials in regard to the excellence of the
Steinway piano by saying:
level-headedness, and we will be sure to bankruptcy measure would have been
I think the plaintiff either expressly or tacitly
witness in the near future a better condi- passed long ago.
approved of or acquiesced in them, and has there-
If the Senate adjourns without placing fore made them his own, and cannot now be heard
tion of things, not only in the music trade,
to impeach them.
to its credit a general bankruptcy law it
but in all industries.
This consideration Justice Beekman ap-
It is quifce essential, however, that this will only add another sin to its long list of plies to all of the transactions of the trustees
embraced in the complaint, adding:
feeling of pessimism or want of confidence omission and commission.
The plaintiff was not only a stockholder in the
THE REVIEW has advocated the passage corporation
should be dissipated. That is absolutely
of Steinway & Sons by original sub-
scription, but during all the times when the trans-
necessary in order to build our hopes and of this measure for years, in the interests actions assailed took place he was in the employ-
of the industry of which this paper stands ment of the company, holding a responsible posi-
aspirations on a solid foundation.
tion, and was fully informed in respect to the busi-
as an exponent, and on the grounds that it ness in all its details. He attended many of the
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meetings of the Trustees, was himself a Trustee
for a short period, and was in frequent conference
Last week our esteemed contemporary, is an essential need of our nation.
It should be the duty of manufacturers and consultation with the officers in reference to
the Courier, published more than half a
the affairs of the corporation.
The books were open to him at all times, and
dozen "rumors" about prospective failures and all interested in this question to urge were
frequently examined by him, and at one time
the
Senate
to
take
favorable
action
on
this
or another during the period of 16 years within
in the piano trade relative to the Smith &
which the transactions assailed took place, most of
Nixon assignment. Hence it is certainly measure before its adjournment, which, it these acts were the subject of comment by him or
in his presence. In some cases he approved; in
amusing to come across the following squib is understood, will take place around the others he expressed some dissent, but in no case
15th or 20th of the month.
did that dissent take the form of protest or objec-
in its current issue:
tion in any such sense as to justify a belief on the
part of the Trustees that the position of the plain-
" I t is useless, not to say vicious, to pub-
tiff was one of settled opposition to the course they
Steinway & Sons Win.
were pursuing, or that the dissent, which was nev-
lish columns of guesses and prognostica-
er formally made to the Trustees, was more than a
tions concerning this complication which
personal opinion not insisted upon or intended to
considered as an objection which should prevail
have no basis other than prejudice and DECISION BY JUSTICE BEEKMAN AGAINST H. W . be
over the opinion and judgment of the other mem-
T. STEINWAY.
bers of the corporation.
idle rumor."
Of the prosperity of the corporation Jus-
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HE action brought in the Supreme Court tice Beekman says:
Rather than doom the seekers of
This is reflected in the dividends, which, prior
by Henry W. T. Steinway against
Paderewski's generosity to wait several Steinway & Sons and others, as trustees of to the commencement ol this action, have been
from year to year declared and paid to the
years, while the interest of his $10,000 gift the corporation, to obtain injunctive relief stockholders
at the following rales: From 1878
1882, at 6 per cent; in 1883, at 12 per cent. ; in
accumulates to the touching point, William restraining the continuance of certain acts to
alleged to be ultra vires, or to involve ex- 1884, at 10 per cent. ; in 1885, at 12 per cent. ; in
Steinway anticipates the growth of the pre- penditures having no proper relation to the each of the years 1886, 1887, and 18S8, at 15 per
cent.; in 1889, at 18 per cent.; in 1890, at 20 per
mium by an out-and-out gift of $1,500 for business of the corporation, to com pi 1 an cent., and in 1892, at 18 per cent. The evidence
accounting and enforce a personal na^.iUy also tends to show an enormous increase in the value
an earlier prize contest, to take place in against the trustees because ot acts alleged of lands at Astoria, which have become a most
asset of the corporation, and »re now the
to be unlawful, was decided against valuable
March, 1897.
site of a flourishing community, which since 1876
the
plaintiff
yesterday
by
Justice
Beekman.
has increased in population from 300 to about 3,000
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In his decision Justice Beekman is care- persons.
The passage last Saturday, in the House ful to say that the issues in the action in-
Concluding his decision, Justice Beek-
of Representatives, of the bill to establish volve neither charge of fraud or claim of man says :
bad faith. The inquiry was limited to the
a uniform system of bankruptcy, is one of question of corporate power, and the equi-
Under these circumstances the plaintiff was
bound to make out a very clear case for equitable
ties
which
bore
on
the
plaintiff's
right
to
the few commendable things which our
relief to call for the interference of the court.
impeach the acts of which he complains.
This, I think, he has utterly failed to do, for the
legislators have done this session. The
The evidence, the decision said, covered reasons which I have stated. Nor do I find any
vote on the bill, 157 to 81, showed a major- sixteen years, the entire period of the cor- evidence of a purpose on the part of the defendant
Trustees to conduct the business, or any part of it,
ity in its favor much greater than its friends porate existence of Steinway & Sons, and in excess of corporate power, or otherwise, in
the chief ground of complaint was the vast violation of their duty, to justify an injunction.
anticipated.
sums of money expended in developing
This bankruptcy measure has been de- the property of the corporation for purposes
Another Attachment.
manded by the business interests of the having no immediate relation to the objects
for which the firm was incorporated.
country for years. The leading trade
Reciting the incorporation of the com-
W. DODGE, a young musician at
papers and commercial bodies have persist- pany for manufacturing and selling piano-
Hudson, Mich., has invented a man-
9
fortes and other musical instruments, and
ently advocated its passage, but some sinis- the
large scope of the business before such dolin attachment for the piano. By the ap
ter influences have been at work to ensure incorporation, Justice Beekman relates that plying of a lever the piano will pass from
its being pigeon-holed just when success the incorporators, William Steinway and its natural tone to an almost perfect mando-
his brothers, C. F. T. and Albert Steinway,
seemed certain. Even now the bill is not transferred all the assets of the firm for the i i n effect. The inventor thinks he can
sure of passage through the Senate, al- greater part of the capital stock, which was make a piano do the work of a full orches-
$1,500,000. Of the assets were real estate
though it has been carefully drawn to pro- in this city and 400 acres of land at Astoria. tra of guitars and mandolins.—-Detroit,
Mich., News.
vide a fair and equitable system of bank- The Astoria land was destined to be used
for the entire manufacturing plant of the
ruptcy, which is alike just to creditors and concern.
S. G. OWENS, piano and organ dealer,
This policy has almost been
debtors.
carried out, and the Astoria property is Lancaster, Pa., is reported to have given
The Senate owes it to the business inter- virtually a Steinway colony, with a church, judgment for $500.
a school, a free bath, and other independent
THE demand for these excellent organs
ests of the country to follow the example adjuncts of civilization.
manufactured by the Weaver Organ and
of the House. There is no measure so bad-
Of the accommodation account attacked Piano Co., York, Pa., continues unceasing-
ly needed as a fair and impartial law of on the trial, Justice Beekman finds it has ly, and 'he factory is at present running
been a source of much profit to the corpora-
bankruptcy. It'will replace the many con- tion, and that supposing this line of busi- over-time to fill orders.
THE Leckerling piano, manufactured by
flicting and unsatisfactory insolvent laws ness was in excess of corporate power, no
Otto Wissner, Brooklyn, will be sold in
damage
is
shown
to
form
the
basis
of
a
re-
which now obtain in the different States.
Boston by the Oliver Ditson Co.
covery against the Trustees.
If Congress had been as solicitous of the
T
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