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Topic: Keely Chronology Stack
Section: Keely's Latest Move. Suits Against Him...
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KEELY'S LATEST MOVE.
SUITS AGAINST HIM MUST BE WITHDRAWN OR HE WILL QUIT WORK.
NYT - PHILADELPHIA, Aug. 23, 1888 -The New York members of the Board of Directors of the Keely Motor Company are placed in a curious predicament by the method adopted by Keely to fight their suit to compel him to turn over to them any inventions of his which may have a commercial value. In a circular issued by Keely to the stockholders of the company he says that unless this suit is withdoamw he will immediately stop work upon his inventions andlet the company make the best of it. As the 100,000 shares issued by the company representprobably not less that $1,000,000 paid in in hard cash by shareholders, the latter feel alarmed over the turn affairs have taken.
In his circular Keely says that he desires to ascertain whether or not the suit by the New-York Directors meets with the approval of a maiority of the stockholders. If it does he proposes to stop his work "as far as it relates to a motive power for running engines." He says he wants to do justice to the stockholders, but they must understand that the existing contracts between the company and himself embrace only his "ether" or vapor force and machinery for its generation and use, and not his "ultimate system," which will be that of "sympathetic attraction." An interest in this latter force may, however, be acquired by the stockholders in the motor company. Keely says that in six months he can now complete a commercial engine on each "system," and if he is left alone will exhibit "progressive experiments" which will immediately send the Keely Motor Company stock up to par. The circular calls for a meeting of the stockholders of the company in this city on Sept. 8 to express their approval or disapproval of Keely's propositions. Accompanying the circular is a plan for the reorganization of the company. The capital is to be reduced from $5,000,000 to $2,500,000, and the number of shares increased from 100,000 to 250,000. Of these 100,000 are to be issued to stockholders, 100,000 to Keely, and 50,000 are to remain in the treasury.
The controlling interest in the stock is held in New-York, where large blocks of it are in thepossession of bankers, capitalists, speculators, and moneyed men of all sorts. It these come to the support of Keely the New-York Directors will be left with so little backing that they will have to give in. The Philadelphia stockholders will, it is expected, be solid for Keely.