Civilian & telegraph. [volume] (Cumberland, Md.) 1859-1875, 1862-06-12


AndrewM ehaifey Fran
els Bloodgood, Allen -
". Sherman. Luther
r. Marsh, and all or =
| d;tors of the Cumber-
land Coal and Iron
Company secured by In the Clrcult Courl
the deed of trust Of for egan y
September 30th, 1851 County, sitting as
made by said Com Court of Equity.
pany to said Mehaf- No. 1881, Eq.
! fey Bloodgood and
Sherman, whose
claims remain I'M
paid, and unknown
to complainant whe-
Their the same be re-
sdcnts or nou-resi-
dents of the State of
Maryland.
| THE object Of this suit is to procure
L decree, vacating the trusts created by
the deed OF trust bearing date September 30th,
1857, made by the Cumberland Coal and Iron
| Company (the complainant, to Andrew
MehaIfey, Francis Bloodgood and Allen
/ sherman Trustees; directing said Trustees TO
rccOnvey to the complainant all the property
/ conveyed 10 them by said deed OF trust and
remaining undisposed of; and to account for
all monies OF complainant which have come
| iEto their hands as such Trustees, or as OH
GERS or employees of the complainant, or in
any other capacity; and, as part OF the relief
I uravcd for in Tie bill, pending this scton,
! thatnn Injunction might be issued restraihin
! said MehatIcv, Bloodgood and sherman their
| agents and servants, and each and every OF
them from disposing Of, or. intermeddling
! with 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.
L.. . ip.p ,,rot tnn nFt IN
| 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 MehafIey accepted the Presi-
I dcncy of said Company, with fixed salary
| of $4,000 per annum, on March lSth, 1854
aud continued as President until June I,
1858 which salary was not increased by its
Board of Directors during his Presidency, ex-
ccpt 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 May
. 1t, 1888.
That on june 9th, 1854. the Stockholders
elected Francis Bloodgood Director, who
continued in such position until April 18th:
/ 1853 uhcn he resigned, and was reelected on
| April 18th, 1858, serving until June 18th, 1853,
| when he ceased 10 hold such Office that Ion <
! anterior 10 his first election rs Director, and
| until January LIST, 1888, he was AN employee
OF the Company al II salary of two thousand
dollars per annum, hich was Then reduced to
sixteen hunured dollars per anuum, by his
own consent, and that he received such re-
! duccd salary until October 23d, S5S when he
, ceased such employment; that such salary was
, ADEQUATE and given for tie devotion Of his
! whole tine and services 20 the interests OF the
COMPANY.
That Allen NJ. Sherman was elected a Di-
rector of the Company on February 2lst
1859 and continued to fill such office until
May 29th, 35S, when he resigned.
The Bill further states, that tie Bylaws oil
the complainant provide for an Executive
Committee OF three Directors, prescribing
their duties, who are regular salaricd officers
and were paid tor their services until January
|. 1888 and all expenses incurred in and al out
the Compnuy's business by them.
That on June Goth, 1885, said Sherman
Boodgood, and one Joseph Torrey we've elect
ed said Committee, Nchatley being, as Presi-
dent, Il member OF it, and presiding when pre-.
sent at its meetings. That they co"tinued as
such until Bloodgoods resignation, April
18th, 1858, occasioned one vacancy therein
! and Shermau's resignation on May 10Th, 1858
IL second vacancy in it, neither of which were
filled up until after Torrey also ceased TO be q
member and Director, ut the election OF Di'
rcclors in June 1858.
The Bill further states, that Mchahey, Blood
good, Sherman and Torrey, whilst occupy ing
such official positions in compaiuauts en-
ploy, exercised and enjoyed the powers and
duues incident III rctc, in managing and con-
trolling its property and atiaivs, and illegally
and fraudu lently, prior to the date OF said
deed OF trust OF September 30th, 1851, invested
and caused to be Invested, at sundry times
large sums OF complainants money, in gam
bling and specializing in its stock, purchasing
and selling the same for cash aud on credit
sometimes receiving and sometimes delivering
tie various numbers OF same so bought and
sod but frequently buying and selling
"Short" us technically described by brokers
in the name of Sherman and in the name Of
TOrrcv, and in the name of Mehaney, and oI
Acnilcy aud Sherman, and in various Other
names, often simply receiving and paying the
differences of value, according as there was
/ money uude or lost in these fraudulent and
| Unauthorized transactions, the result of which
in the aggregate of their operations OF hi.
, character, was Il total loss OF over fifty thou.
sand dollars, paid by them out of the Com
pany's monies under tleir control, no part Of
which has ever been repaid to it, although
each and every OF them are liable to it for the
same, and which produced in Il great degree
the embarrassment that led TO the executi ton
of said deed.
deed and ut the time it was made, Mehaiey
as Treasurer, got possession OF various sums
OF complainants money, amounting to Al
least $l3, 800, which he still owes it, and did
so owe ii when said deed of trust was made
and which he has hitherto retained by the
connivance and aid of said Sherman and
Rloodgood, which also added tie said embat-
rassment al that time. That Mehaliey, as Pre-
sdent and Treasurer, together with Sherman
and Stood good, composed three fourths ofsaid
Executive Committee, and Torrey, the other
member, aiding and abetting them, managed
almost entirely and exclusively the complain
ants property and business; advising the
Stockholders to suit their own schemes and
that the other Directors from time to time
elected, were either ignorant or kept in igno-
rance OF the real condition of its business and
affairs, or were interest ted in and favorable TO
their nefarions designs upon its property and
interests.
The B i'll also states, that said Mehafey and
Bloodgood, with the fraudulent intent of bene-
fitting Sherman, ut The complainant's ex-
pense, and securing his aid in their own
schemes against its property, conspired with
him and others, to obtain for Sherman and
one William B. Dean, at ruinously low prices,
a large and valuable portion OF complanants