HARDWOOD RECORD 



17 



M^ck Rake Department. 



Chicago Fake Enterprises. 

 The grilling that Judge Arthur H. Chet- 

 hiin is receiviug before the judiciary com- 

 mittee of the Chicago Bar Association while 

 attempting to explain his numerous financial 

 transactions and to show that his conduct 

 has not been such as to cast reflections on 

 the high office of judge of the Superior 

 Court, is another exemplification of either the 

 greed or carelessness of many men who have 

 achieved high commercial and social promi- 

 nence, but who lend their names to question- 

 able enterprises. Some of these people ap- 

 parently permit their names to be used in 

 connection with undertakings of which they 

 have no knowledge, for the sake of graft 

 ]>iire and simple, while others seem to be 

 coaxed into them through friendship for pro- 

 moters or promoters ' associates in whom 

 tliey have confidence. 



In the case of Judge Chetlain his examina- 

 tion disclosed that he could not even re- 

 member whether or not he was an oflacer in 

 many of the companies of which the record 

 indicates that he was either president or 

 secretary. One of these fake enterprises was 

 the Porto Kico Gold Mining Company, of 

 which the judge was set down as secretary. 

 The company was capitalized at $5,000,000. 

 Chetlain put up $2,500 in cash, gave his check 

 for $7,500, and received $100,000 in stock 

 par value. As an inducement to make this 

 purchase and become a director of the com- 

 pany, he was presented with $600,000 worth 

 of stock. The judge used his influence to 

 get up a syndicate of his personal friends 

 to put up funds for the company to invest 

 in hardwood and coal lands. The promoters 

 used a large part of the money advanced for 

 other jiurposes, without any authority what- 

 ever. Chicago experts report the hardwood 

 proposition as absolutely a fake. The re- 

 mainder of the money advanced, it is al- 

 leged, the promoters appropriated to their 

 own use. 



Another company with which Judge Chet- 

 lain was connected was the Rayon Min- 

 ing Company of Old Mexico. This company 

 was capitalized at $1,000,000, and he was 

 given $50,000 in stock for $5,500 in cash. 

 The judge testified that no stock in this com- 

 pany had yet been sold to the public and that 

 the original incorporators had only put up 

 $50,000. He pleaded that he did not even 

 know who were the officers of the concern. 

 The third company in which the judge was 

 interested was the Chicago International 

 Company, which he says owns 12,000 acres 

 of rubber lands a hundred miles west of 

 Chihuahua, Old Mexico. This company is 

 capitalized at $100,000, and the land was put 

 into the company at that figure. None of the 

 stock was paid for at the time of the or- 

 .ganization. Attorney Baldwin, for the com- 

 mittee, attempted to show that fifty-one per 

 cent of the stock of the Chicago International 

 Company had been hypothecated with four 

 men at JIuncie, Ind., with the understanding 



that they could buy it for ten cents on the 

 dollar, but after investigating the proposition 

 they refused to take it. 



International Lumber & Development 

 Company. 



The methods of exj^loitation and sale of 

 stock used by the International Lumber & 

 Development Company of Philadelphia have 

 received considerable attention in the columns 

 of the Hardwood Eecord. It might be well 

 to say a word about the persons who occupy 

 the positions of figureheads in this corpora- 

 tion. William H. Armstrong, president, is 

 a prominent Philadelphia lawyer, and an ex- 

 commissioner of railroads. He is well known 

 in political and legal life. There is no evi- 

 dence to show that he knows anything con- 

 cerning either the foreign or domestic lumber 

 business. His son, William Armstrong, Jr., 

 is oflSce manager of the company. 



Col. A. K. McClure, vice president, wan 

 editor in chief of the Philadelphia Times 

 from 1873 to 1901. He has divided his life 

 work between a newspaper shop, politics and 

 the law; has been prothonotary of the Su- 

 preme Court of Pennsylvania since 1904. He 

 is now seventy-eight years old, but there is 

 no suspicion that he has any knowledge what- 

 ever of the lumber business. 



One of the directors of this company is 

 Victor Du Pont, Jr., one of the vice presi- 

 dents of the famous Du Pont Powder Com- 

 pany, who has charge of the latter 's real 

 estate department at Wilmington, Del. Mr. 

 Du Pout was interviewed a few days ago 



by a representative of the Hardwood Record. 

 He was asked how he happened to become a 

 member of the company. He answered: 

 ' • From a sentimental rather than a business 

 reason. I inherited some stock in the Mexi- 

 can Plantation Company of Philadelphia, on 

 the death of my brother, Charles I. Du Pont. 

 This concern is very similar to the Inter- 

 national Lumber & Development Company 

 and was managed by John E. Markley and 

 I. B. Miller. The same contractors were 

 working the plantation of the International 

 company. My brother thought well of this 

 investment, and I therefore became a .stock- 

 holder in the new one. Besides, I have great 

 confidence in Judge Armstrong and Colonel 

 McClure. ' ' 



It developed that Mr. Du Pont holds only 

 five shares in this "millionaire corporation," 

 and that he is paying for them on the in- 

 stallment plan, just as the country preacher, 

 the cross-roads schoolma'am, and the street- 

 car conductor are paying for theirs. How 

 much stock Judge Armstrong and Colonel 

 McClure own is unknown. 



Mr. Du Pont is undeniably an upright busi- 

 ness man, as he is of a family that has 

 been noted for straightforward dealings and 

 a long and honorable commercial history. 

 He apparently knows nothing that is worth 

 while concerning the company of which he 

 is a director, as is evidenced by his interview, 

 but though he owns only five shares of the 

 stock, he is exploited as a director and as 

 being largely interested in the corporation 

 simply to give prestige to the institution and 

 to gain investments from people who have 

 confidence in the Du Pont commercial his- 

 tory and reputation. 



Hardwood Record Moil 'Bag. 



[In this department it is proposed to reply 

 to such inquiries as reach this office from the 

 Hardwood Kecord clientage as will be of enough 

 general interest to warrant publication. Every 

 patron of the paper >s invited to use this de- 

 partment to the fullest extent, and an attempt 

 will be made to answer queries pertaining to all 

 matters of interest to the hardwood trade, iu 

 a succinct and intelligent manner. 1 



About White HoUy. 

 HociiESTKH, .N. v., July :;, I'.IOG, — Editor 

 llAHDwooD Record: Some months ago among 

 the articles which you published on different 

 trees you had one on holly. We tind one of the 

 authorities gives its family as Aquifoliacea;, and 

 classifies it as IJcx opaca, saying the wood is 

 brown, sapwood paler brown ; light, tough, close- 

 grained, susceptible to a brilliant polish, and 

 used for whip-bandies, engraving blocks and 

 cabinet work. We do not see just where the 

 pure white of holly, as it is used in cabinet work, 

 i-omcs in in this description. We use some holly 

 iu our business, and a customer .nsks us for 

 something of a history of certain fancy woods 

 we put in floor work for him. This botanical 

 description does not sound correct for the white 

 holly that we use. Would be glad if you could 

 send us the article we mention, by early mall. 

 Yours truly, Company. 



Holly, commonly known as while holly, 

 is the only high-class commercial wood of this 

 species. It is of the family Aquifoliacece, 

 genus Ilex, species opaca. The description 

 of the tree as quoted by you is far from 



agreeing with the best authorities. A much 

 better one is given in Rogers ' ' • The Tree 

 Book, ' ' published by Doubleday, Page & Co., 

 New York. This is true of holly: To pre- 

 serve the highest and most permanent char- 

 acter of this wood, i. e., an ivory-white color, 

 it must be sawn and carefully handled in 

 cold weather. It almost invariably stains and 

 yellows when felled or sawn in warm weather. 

 This result will always obtain when the logs 

 arc steamed and sliced or rotarj' cut. The 

 wood should never be steamed if it is desired 

 to preserve the fine white color. — Editor. 



Approves Flooring Editorial. 



Detroit, Mich., June 26, 1906. — Editor Hard- 

 wood Record : I have read with great pleasure 

 your very correct editorial headed "Hardwood 

 Klooring Situation" in your issue of June 25. 

 You have certainly set forth the situation just 

 exactly as it is at the present time, and by so 

 doing you have rendered valuable service to the 

 industry. Very truly yours, Thomas For.max. 



Big Rafid.s, Mich.. June 2(i, ino6. — Editor 

 Hardwood Kecord: We read with much inter- 

 est and pleasure your editorial in the issue or 

 June 23, referring to the flooring business. The 

 thanks of the flooring trade is d\ie you as well 

 as thanks from those contemplating going Into 

 the business without providing themselves with 

 ample timber snjiply and fully considering the 



