HARDWOOD RECORD 



J\Iuck Rake Department. 



The True Inwardness of the International 

 Lumber & Development Company. 



There is a legend to the eft'eet that wheu 

 certain people fall out, honest men get their 

 due. Apropos of the considerable free ad- 

 vertising that the Hardwood Record has be- 

 stowed upon the International Lumber & De- 

 velopment (Company of Philadelphia, and 

 other places, for some months past, it here- 

 with adds a most interesting chapter to the 

 record of this remarkable institution. 



It seems that one Walter H. Bell, resident 

 of Chicago, has filed before the Chancery 

 Court of Cook County a bill of complaint 

 against John B. Markley, Isaiah B. Miller, the 

 San Pablo Company and the International 

 Lumber & Development Company. The full 

 text of this document will prove of particular 

 interest to stockholders in the International 

 Lumber & Development Company, and to the 

 thousands of others who have been solicited 

 to embark their money in this enterprise, and 

 it is herewith printed in full : 

 State of Illinois, County 



the tlien president of the company, .lohn It. 

 Markley, one of the defendants iu this hill, 

 stating that the business hnd not met the ex- 

 pectations of the management, and that an op- 

 portunity had arisen for the sale of the entire 

 assets of the San I'ablo Company upon reason- 

 able terms, and that the board of directors of 

 said company had recommended such sale, and 

 a special meeting of tlie stockholders liad been 

 ordered to act upon said proposition. 



3rd. That at a meeting of the stockholders 

 of said San I'ablo Company held in the month 

 of August, 1904, the proposed plan of selling all 

 of said assets was adopted, and shortly there- 

 after, as your orator is informed and believes 

 and so states the fact to be. a contract was 

 made by the said company with a trustee for 

 the benefit of said defendant, International Com- 

 pany, in and by which it was agreed that the 

 San Pablo Company would sell sai<l li8.S,000 

 acres of land and ail other assets of the San 

 I'ablo Company at an agreed price of .f450.000, 

 payable in two equal installments, the lirst in- 

 stallment to be due in three years after date of 

 the contract, and the second installment to be 

 due five years after the contract date, said de- 

 ferred payments to Ijeai- interest at 5 per cent 



of Cook, ss. 



In the Circuit Court 

 of Cook County. 



To the Honorable 

 Judges of the Circuit 

 Court, in Chancery Sit- 

 ting: 



Your orator, Walter 

 I-I. Bell, a resident of 

 Chicago, in the county 

 and state aforesaid, 

 brings this his bill of 

 complaint against John 

 R. Markley and Isaiah 

 B. Miller, residents of 

 Chicago, in the county 

 and state aforesaid, the 

 San Pablo Company, a 

 corporation organi zed 

 under the laws of the 

 state of New Jersey, 

 and International Lum- 

 ber & Development 

 Company, a corporation 

 organized under the 

 laws of the state of 

 Delaware (hereinafter 

 for convenience called 

 Intern ational Com- 

 pany), who are made 

 parties defendant tq this 

 your orator complains and says : 



1st. That the said defendant, 

 Company 



I. I & D. C^CDIVIF^AIMV 



Pres., Hon. Wm. H. Abmsteono 



£x-U. 8. Railroad (.'oniraissloner 



Phiiadelphiii, Pa. 



Home Office, 701-716 Drexel Building, Philadelphia, Pa. 



Sec. and Treas., C. M.'McMahon 



Sec. and Treas. I. h & I>. Co. 



I'liiladelphia, Pa. 



Vice-P'res., Col. Artx. K. McClubb 



Ex-Editor ne Txmu 



Pbiladelpiiia, Pa. 



Dividends Paid Since March, I905 



July 31; 1906. a special extra dividend of 2^^ will be paid 

 over and above the regular guarantee. This is the third divi- 

 dend this year ; io% paid last year instead of 8*, as guar- 

 anteed. Next semi-annual dividend period, October i, 1906. 



Eight "Per Cent. Guaranteed. 



(Basis, Land (283.COOAcresj, Luniber,Cattlie, Railroad and Improvemenb) 

 WHAT IT WILL COST YOU 



Five dollars or more a month, for a few months, buys protected intet^est In this ;great 

 enlecprise. 



Each member has equal voting power. In case of death money will be returned to heirs, 

 if desired. (This is not life insurance. ) Let us explain. Space forbids here. 



Fill in and tear off attached card. Put postage stamp on it and mail it. Do it now, as only 

 a limited numberof shares are for sale at par, and soon all shares will be taken. YOU MUST 

 ACT SOON. 



COPY OF ALLURING POSTAL CARD SENT BROADCAST BY THE INTERNATIONAL LUM- 

 BER & DEVELOPMENT COMPANY. 



bill, and thereupon 



San I'ablo 

 was organized in the year 1900 with 

 a capital stock of $1,500,000, divided into 120,- 

 000 shares of preferred and 180,000 shares of 

 common stock, making 300,000 shares of the par 

 value of $S per share, and that of this stock 

 your orator owns 1.754 shares of the preferred 

 and about 6,000 shares of the common stock ; 

 that said 1,754 shares are reasonably worth 

 par, and that said common shares have no defi- 

 nite value ; that said corporation acquired by 

 purchase 288,000 acres of land situated in the 

 District of Champoton in the State of Campeche, 

 Mexico, having paid for same the sum of $350,- 

 000 in Mexican silver, or about $180,000 In 

 United States money, and that the business that 

 the said San Pablo Company proposed to en- 

 gage in was that of timber, lumber, cattle, dye- 

 woods, chicle, etc., and that said business was 

 carried on by said corporation from about the 

 date of its organization until the middle of the 

 summer of 1904, at which time the business of 

 the company was said to be unprofitable. 



2nd. That upon July 30th, 1904, a proposi- 

 tion was sent out to the stockholders of the 

 said San Pablo Company over the signature of 



per annum, payable semi-annually, and that it 

 was agreed that the net proceeds of all products 

 of the forest or property of any kind included 

 in said sale that should be removed from the 

 said hind until said purchase price was com- 

 pletely paid, and should be paid over to the 

 San Pablo Company to apply on said purchase 

 price. And your orator is further informed 

 that proper conveyances were made conveying 

 all of the assets of the said San Pablo Company, 

 and that a deed was executed to the United 

 Security Life Insurance and Trust Company of 

 Pennsylvania as trustee for said International 

 Company, and that said deeds and other con- 

 veyances were deposited in escrow, with the 

 understanding that the same were not to be 

 delivered and that the title to said property was 

 not to pass until all of the said purchase price 

 had been paid in the time and manner specified 

 in the contract of purchase. 



4th. That since the said sale and transfer the 

 said San Pablo Company has done no business 

 whatever, except to receive from the trustee 

 named in said sale contract such interest as has 

 been paid to it on account of said purchase price, 

 and to disburse among the stockholders of said 

 San I'ablo Company the amounts so received in 



accordance with the proper interest of each stock- 

 holder. 



5th. Your orator is further informed and be- 

 lieves that the stipulations in the said agreement 

 of sale made as aforesaid have been violated, and 

 that there has been a default in the payment of 

 interest due upon said purchase price, and that 

 the products of the forest and other products 

 have been removed from the said 288,000 acres 

 of land without a proper accounting and payment 

 being made for same to the said San Pablo Com- 

 pany. 



6th. That in the fall of the year 1904. and 

 about the date that said sale contract was made, 

 the defendant, John R. Markley, and other per- 

 sons interested with him organized the said de- 

 fendant International Lumber & D'evelopment 

 Company, with a capital stock of $6,000,000 and 

 that said corporation was organized for the pur- 

 pose expressed by the organizers of developing 

 not less than 20.000 acres of land, being a part 

 of the said .28S,tM)0 acres of land above referred 

 to : that the said capital stock was divided into 

 20,000 shares of capital stock of the par value of 

 $300 each, it being represented by said organizers 

 that each of said shares would represent one acre 

 of said land brought to maturity of rubber, sisal, 

 bananas, etc. ; that yoiu- orator is informed and 

 believes that the said 

 contract of sale afore- 

 said made by said San 

 Pablo Company was 

 made for the benefit of 

 said International Com- 

 pany, or was after- 

 wards transferred to 

 said Intern ational 

 I 'ompany. 



7th. That on Feb- 

 ruary 4, 1905, your or- 

 ator, at the request of 

 the defendant, John R. 

 Markley, made and ex- 

 ecuted a promissory 

 note for the sum of 

 $671.30 to the order of 

 City National Bank of 

 Mason (I'ity, Iowa, and 

 delivered the same to 

 said Markley, said 

 Markley agreeing that 

 he would see that the 

 same was paid at ma- 

 turity : that prior to 

 the making of said 

 note your orator had 

 deposited for safe keep- 

 ing with the defendants 

 Markley and Miller the 

 shares of stock and 

 stock in said San 



said 1,754 preferred 

 500 shares of common 

 Pablo Company ; that at the time that said Mark- 

 ley obtained said promissory note, he informed 

 your orator that he had obtained about $1,000 

 from one H. A. Merrill, president of the said City 

 National Bank, and that he had deposited the 

 said stock of your orator as collateral security for 

 $600 of said amount ; that thereafter the said 

 note of $671.50 was delivered by the said Markley 

 to said City National Bank. 



8th. That said note was paid to said City 

 National Bank out of dividends or interest upon 

 the said 1,754 shares of preferred stock ; that on 

 July 6, 1906, said note was received by your 

 orator, duly canceled, through the United States 

 mail from the trustee of the said San Pablo Com- 

 pany, together with a check for the sum of 

 $183.90 made by the said San Pablo Company to 

 your orator's order and purporting to be the bal- 

 ance due to your orator for Interest or dividends 

 upon said 1,754 shares of preferred stock after 

 the payment of the balance due on said promis- 

 sory note; that prior to said last mentioned date, 

 and for a long time prior thereto, your orator 

 was ready and willing and had offered to pay 



