Civilian & telegraph. [volume] (Cumberland, Md.) 1859-1875, 1862-05-29
Order in Chancerv.


ID against
ID AndrewM cha ffe Y Fran
al els Bloodgood, Allen
rs ". Sherman, Luther
y r. Marsh, and all or
g ditors ofthe Cumber-
land Coal and Iron
Company secured by Ia the Circuit Cou
, the deed of trust of for Allepnu
september 10th, 1857, County, sitting
made by said Com Court of Equit
pany to said Mehaf- No. 1881. Eq.
y fey, Bloodgood and
u > n er man, whose
u claims remain up-
X paid, and unknown
:, TO complainant whe-
r. Their the same be re-
;, sidents or non-res-
= dents of the State of
Maryland.
: NHE object of this suit is to procur
}. decree, vacating the trusts created b.
: lne deed OF trust bearing date September 30ti
? 1907, made by the Cumberland Coal and Iro
q company 1.-THE complainanD, to Andrey
4 Mehafiey, Francis Bloodgood and A lien NJ
d sherman, Trustees; directing said Trustees t,
reconvey TO the complainant all the propert,
l conveyed to them by said deed of trust, ant
remaining undisposed of; and to account fol
an monies OF complainant which have CONF
; INTO their hands as such Trustees, or as off
GERS or employees of the complainant or in
: any other capacity; and, as part of the relic
prayed for in the bill, pending this xction
that an injunction might be issued restranin
SAID Meilalfey, Bloodgood and Sherman, their
agents and servants, and each and every OF
mem, from disposing of or ntermedding
WIN any OF the property mentioned in said
deed OF trust, which injunction has been
granted, on bond being filed by complain.
ant, and issued in this cause.
Inc Dill hrst states the incorporation of the
Cumberland Coal and Iron Company and the
purposes for which such corporation was
created, and that its charter authorized the
location OF its principal Office in the CITY of
New York.
That Andrew Mehaney accepted the Presi-
dency of said Company, with fixed salary
| OF $4,000 per annum on March 18th, 1854,
aud continued as President until June 7,
1888, which salary was not increased by its
Board OF Directors during his Presidency, ex-
cept once, when they allowed him two thou
sand dollars additional for the year ending
| March 10th, 1858; and that he also acted as
Treasure: from March 18th, 1854 until Nav
| lst, 1883.
| That on June 9Th, 1854, the Stockholders
| elected Francis Bloodgood n Director, who
continued in such position until April 18th,
1858, when he resigned, and was re-clecte! on
April 18Th, 1885, serving until June 18th, lSaS. /
when he ceased to hold such office; rhtt long
anterior 10 his first election as Director. and
until January LIST, 1883, be WINS an employee
OF the Company at salary Of two thousand
dollars per annum, which was then reduced TO |
sixteen hundred dollars per anuum, by his !
own consent, and that he received such re- |
duced salary until October 23d, 1853. when he |
ceased such employment; that such salary was
adequate and given for tie devotion Of his
whole tine and services 20 the interts SITS Of the
Company.
That Allen NJ Sherman was elected Di-
rector OF the Company on February 2lst,
1855 and continued to fill such office until
May goth, 1858, when he resigned.
The Bill further states, that the Bylaws of
the complainant provide for an Executive
Committee OF three Directors, prescribing
their duties, who are regular salaried officers,
and were paid for their services until January
|, 1858, and all expenses incurred in and ut out
the Compary's business by them.
That on June 10th, 1853, said Sherman.
Bloodgood, and one Joseph Torrey were elect
ed said Committee, MehaiTey being, rs Presi-
dent, a member OF it, and presiding when pre.
sent Mt its meetings. That they continued as
such until Bloodgood's resignation, April
18th, 1858, accustomed one vacancy therein.
and Sherman's resignation on May 10Th, 1853,
A second vacancy in it, neither of which were
filed up until after Torrcy also ceased TO be A
member and Director, al the election of Di. ,
'ectors in June, 1858. !
The Bill further states, that Mealfey, Blood y
,ood, Sherman aud Torrcy, whilst occupying /;
UGH official positions in compliments EN-. j
hoy, exercised and enjoyed the powers and
luteS incident ih' retc, in managing and cor !,
rolling It's property aud affairs, and illegally ,
IN q trutluu lpuily priOr thn dat 4 "A
Iced of trust OF September Both, 1857 invested n
md caused to he invested, at sundry times :
argc sums OF compliments money! in gam ;,
'ling and specuI.stirg in its stock, purchasing I
md selling the same for cash and on credit =
omelinies receiving and sometimes delivering =
lie various numbers Of same SO bought and I
old, but frequently buying and selling :
short," as technically described by brokers. +
n the name of Sherman and in the name of !
Iorrev, and in the name of Mthni!ev, and of /
lehaiiey and Sherman, and in various other /
lames, often simply receiving aud paying the
differences of value, according us there was I
money made or lost in these fraudulent and .
Unauthorized transactions, he result of which ,
n the aggregate Of their operations of Ibis q
character, WAS n total loss OF over fifty thou. +
and dollars, paid by them out of the Com a
'any's monies under their control, no part of I
which has ever been repaid to it, although
acn ana every OF them are liable to il for the 1
anne, and which produced in u great degree :
he embarrassment that led TO the execution =
# said deed. i
The Bill further states. that prior to said |
iced. and at the time it was made, Mehaffev. r
3 Treasurer, got possession OF various sums I
II compliments money, amounting to ut !
east $l3,sU0, which he still owes it, and did n
o owe il when said deed of trust was made. a
nd which he has hitherto retained by the q
onnivance and aid of said Sherman and I
'loodgood which also added te said embar- I
assment at that time That MehafIev, as Pre- n
ident and Treasurer, together with Sherman )
nd Bloodgood, composed three. fourths ofsaid e
Executive Committee, and Torrey, the other L
member, aiding and abelting them, managed c
lmost entirely and exclusively the complain. i,
nt's property and business advising the k
ockholders TO suit their own schemes and X
nat the other Directors from time to time fl
ected, were either ignorant or kept in gno- 81
ince OF the real condition of It's business and II
Hairs, or were interested in and favorable TO I,
ieir nefarous designs upon its property and c.
lterests. NJ
The b i'll also states, that said Mchaf1ey and Il
loodgood, with the fraudulent intent Of bene- I
ting Sherman, at the complainant's ex- n
ense and securing his aid in their own a
hemes against its property, coRspired with b
i'm and others. to obtain for Sherman and n
ne William B. Dean, at ruinously low prices, o
large and valuable portion of complainant's 81
neral estate, of which as between said Sher- OF