Civilian & telegraph. [volume] (Cumberland, Md.) 1859-1875, 1862-07-10


ditors ofths Cumber-
ComronT secured by In the Circuit Court
the deed of trust Of for Al egany
September 30th, 1857, county, slttlng MS
made by said Com a court or Equity
pany to said Mehaf- no. 1851 Eq'
fey Bloodgood and
sherman whose
claims remain un-
paid, and unknown
TO complainant whe-
Their the same be re-
sidents or non-resi-
dents Of the State OF
Maryland.
THE object of this suit is to procure
decree, vacating the trusts created oy
the deed OF trust bearing date September 3oih,
1857, made by the Cumberland Coal and Iron
Company (the complainanD, to Andrew
MehafTey, Francis Bloodgood and Allen NJ
Sherman, Trustees directing said Trustees 10
reconvey to the complainant all the property
conveyed to them by said deed OF trust and
remaining undisposed Ct; and TO account for
all monies of complainant which have come
into their hands as such Trustees or as olh-
GERS or employees of the complainant, or in
any other capacity; and, as part OF the relief
pcayed for in the bill, pending this action,
that an Injunction might be issued restrainn
said Mehafey, 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 a bond being filed by complain
ant, and issued in this cause.
The bill first 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 MebaGey accepted the Pres-
dency of said Company, with fixed salary
of $4,000 per annum, on March 18th, 1854,
and continued as President until June 7,
1858, 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 May
LIST, 1858.
.- That on June 5h, 1854, tho Stockholders
elected Francis Boodgood n Director, who
continued in such position until April 18Th,
1858, when he resigned and was reelected on
April 18th, 1853 serving until June 18th, 1898,
when he ceased to hold such office; that long
anterior to his first election as Director, and
until January LIST, 1858, he was an employee
of the Company ut salary OF two thousand
dollars per annum, which WAS then reduced to
own consent, and that he received such re-
duced salary until October 3d. 1853, when he
ceased such employment; that such salary was
ADEQUATE and given for tie devotion of his
whole time and services 20 the interests OF the
Company.
That Allen NJ. Sherman was elected Di-
rector of the Company on February 2lst
1865, and continued to fill such office until
May 10th, 1853, when he resigned.
ho fur By-IRWg n
the complain nt provide for an Executive
Committee OF three Directors, prescribing
their duties, who are regular saaried officers,
and were paid for their services until January
l. 1855 and all expenses incurred in and about
the Company's business by them.
That on June Goth, 1855, said Sherman,
Dloodgood, aud one Joseph Torrey wei e elect
dent, a member OF it, aud presiding when pre-
sent at its meetings. That they coatnued af
such until Boodgood's resignation, April
18th, 1885, accustomed one vacancy therein
and Sherman's resignation on May 10th, 1858
second vacancy in it. neither of which were
filled up until after Torrey also ceased to be a
member and Director, at the elccton OF III
rectors in June, 1858.
The Bill further states, that Mchalfey, Blood
good, Sherman and Torrey, whilst occupying
such official positions in compliments en-
ploy, exercised and enjoyed the powers and
duties incident thu retc, i'll managing and con
trolling its property and afars, and illegally
and fraudu lently, prior to the date OF said
deed of trust of September Both, 1857, invested
and caused to be invested, at sundry times
large sums of complainant's money in gam
bling and specializing in its stock, purchasing
and selling the same for cash and on credit
sometimes receiving and sometimes delivering
.be various numbers of same so bought and
sold, but frequently buying and selling
"shor,,"as technically described by brokers,
in tho name Of Sherman and in the name oil
Torrev, and in the name OF Mehatley, and OF
Mehai'sy and Sherman, and in various other
names, often simply receiving and paying the
differences of value, according as there was
money made or lost in these fraudulent and
unauthorized transactions, the result of which
in the aggregate Of their operations of .his
character, was a total loss of over fifty thou
sand dollars, paid by them out of the Com
pany's monies under their control, no part OF
which has ever been repaid to 1t, although
each and every of them are liable to ii for the
same and which produced in great degree
the embarrassment that led TO the execution
OF said deed.
The Bill further states, that prior TO said
deed. and at the time it was made, Mehafey
Hs Treasurer, got possession OF various sums
of compliments money, amounting to at
least ST., 800, which he still owes ii, and did
SO owe IL Wnen Satu uecu Oh trust WIS nlhuc,
and which he has hitherto retained by the
connivancc and aid of said Sherman and
Boodgood, which also added tie said embnt-
rassment at that time. That Mehaaey, as Pre-
sdent and Treasurer, together with Sherman
and Bloodgood, composed three tourths ofsnid
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 interested in and favorable 10
their nefarious designs upon its property and
interests.
The Gill also states, that said Mena1ey and
Bloodgood, with the fraudulent intent of bene-
fitting Sherman, at the complainant's ex-
pense, and securing his aid in their own
schemes against its property, coRspred with
him and others, to obtain for Sherman and
one William B. Dean, at ruinously low prices
a large and valuable portion OF companants
mineral estate, of which as between said Sher-
man and said Dean, Sherman was 10 be the
chief if rot sole owner, together with certain
rights and privileges of transportation ovel
con, Mai uant'a railroad and shiDmeut Mt nd