Fight For Control
In 1901, Kellogg fell seriously ill. His brother-in-law, Wallace De Wolf, proved to be a poor manager. Concerned that the company might fail, De Wolf secretly sold a majority of Kellogg's stock to Western Electric. Easily manipulated by Western Electric executives and legal advisors, De Wolf also helped Western Electric attempt to take over the country's other large telephone equipment manufacturer, Stromberg-Carlson. A bitter stockholder fight ensued, which led to Stromberg-Carlson's reincorporation as a New York state corporation in 1902.
Milo Kellogg recovered his health, and discovered what De Wolf had done. Kellogg sued to stop the sale of his stock. In two separate decisions by the Supreme Court of Illinois—Brown v. Cragg, 230 Ill. 299 (1907) and Dunbar v. American Telephone and Telegraph, 238 Ill. 456 (1909)—Kellogg retained ownership of his company.
Read more about this topic: Kellogg Switchboard & Supply Company, History
Famous quotes containing the words fight and/or control:
“The rebel can never find peace. He knows what is good and, despite himself, does evil. The value which supports him is never given to him once and for all—he must fight to uphold it, unceasingly.”
—Albert Camus (1913–1960)
“Men who have been raised violently have every reason to believe it is appropriate for them to control others through violence; they feel no compunction over being violent to women, children, and one another.”
—Frank Pittman (20th century)