The New York herald., 1869-12-16
STOCK DABBLING LAWYERS
INTERESTING SQUABBLE ABOUT STOCKS.
Two Prominent Lawyers the Combat
ants-Colonel Rush c. Hawkins vs.. Geo.
Bliss, Jr.-Dlissfnl Hopes and Rush.
Ing Business-The Colonel Goes
IN Calamity and Comes Out
Dem0ralized.

1t is not often that Wall street enjoy the plea
sure OF witnessing such a as occurred IN the
Superior Court yesterday. herd Of bears" and
bulls.n who had often been worried by lawyers con-
cernng their financial capers, was present and
waxed frisky the troubles OF stock daDbing
limbs OF the law. Colonel Rush @. Hawkins brought
q suit against George bliss Jr for account OF GER
tain transactions In stocks, and claimed damages to
the neat little amount OF $4,000.
In the complaint the gallant colonel sets forth that
In March, 1854 the defendant represented to plain
ti tnaI he had good investment In stocks, by which
from nfteea to seventeen per cent could be made;
that 1t Was the wyoming Valley and Coal Railroad
Company; that he WAS the counsel and legal ad-
wiser OF the company: that ne knew all its affairs;
that II was In good financial condition, and the
stock was good stock 70 hold. Plainlf, relying on
these representations entrusted the defendant with
discretionary authority direct purchase on tho
plaintiffs account, which purchase defendant did
so dreet, the amount oi s52 563. That all the ma
teria representations were false, and that defend
ant deceived paintir and acted toward him fraudu-
lently and in bad faith. Immediately after the
purchase OF the stock, 1t began rapidly TO decline,
and went down until plaintiff was obliged to sell at
a heavy loss for winch he claims damages 10 the
amount Of s45,0oo
Defendant denies all the material allegations,
alleging that he merely expressed an opinion IN good
faith IN relation to the condition OF the company
aud the value OF its stock as an Investment
SLAP BANG.
Mr. Bangs opened the case on behalf OF the plain
tin, briefly stating the facts substantially set forth
above
The nrst evidence introduced on behalf OF the
plaintiff the deposition OF Mr., Bliss, the defend
ant, taken before trial. which IS substantially as
follOws:- .
That he has known the planun since 1857; that
they were together The committee on arms and
trophies IN Sanitary Fair 1864; that-at that time
he lBss) had been Tor few months counsel to the
Wyoming Valley Railroad and Coal Company; that
he had examined the papers and books OF the COM
pany at that time in realoa TO their title TO the
lands In PENNSYLVANIA, and also as the companys
financial condition; thinks lie was not stocknoider
at that time and cannot nx the time when ne be-
came such; what stock he did purchase was at the
rate oil Ol TO 1867 part this stock lie held Tor eignt
months and some for over year; cannot remember
the Indebtedness OF the company at the time he had
this conversation with the phinti1; Ne nau endeav-
ored to inform himself iully as to
THE FINANCIAL CONDITION OF TIE COMPANY.
some OF tue facts relatln. to Its condition are
that 1t owned nine producing large amount OF
coal; that 1t owned large amount OF real estate IN
and Scranton then valuable, and constantly IN
creasng in value that the price OF coal was such as
TO pay good profit. and the company was ABOUT 10
commence the business of delivering coai az New
YORK and Elizabeth instead OF selling at tne mines;
that In all his Conversations with the pantn he as
closed TO him all the knowledge be had ol me condi-
ton oI tue company together with the TACT that 10
was about to purchase an adJoissfnS nine WHICH
would greatly enhance the value oi the company,s
property; that the anticipated purchase oil STOCK
was to have been made on the completion OF the
agreement with the owner OF the adjoining mine,
and that the purchases, both Of palntin and hinl-
self were made on the Completion OF tnat arrange
ment and tnaG the subsequent rapid decline III the
OF the stock was due TO the decline III tue price
of coal and The Development OF aDloyances and
delay caused by tue Lackawanna Coal Company IN
bringing the coal to market, as the company was
compelled 10 DflnS its coai oNci tue LaSAo" ouA"
Railroad.
RUSH c. HAWKINS
the plaintiff, then called and examined by Mr..
Bangs. lie testified that he had known the defend
ant, Mr.. Bliss casually from 1853 OF 1889 upwards,
but had never known hlm intimately ultll The sprlg
| OF 1864, when they came IN communication IA con-
nection with the Sanitary FAIR IL Fourteenth street,
| we were both IN the Sanitary Committee on Arms
and Trophies; prior to March, 1894 ! mad no know
ledge or Information OF concern known as the
wyoming Valley Railroad and Coal, Company;
ant; Mr.. Bliss accosted me III the Sanitary
Fair Buildiog In a very. familiar way, and
thing IN sIocks9" said, "Yes sonetlmes;n he then
to me, As you, among others, nave oeen IN tie
field, you nave not had an opportunity TO maze
money We who have stayed at home snould
like to see you make something ana this Is good
thing; there is a profit OF either
TEN OR SEVENTEEN PER CENT"
he said. at any rate proht oil ten per cent could
time, that IL was not time yet, or tnat ne did
not know definitely about 1T at tnat tune,
put when the proper time arrived ne would
then .go ln' after that had several conversa-
lions and towards the last Mr. Bliss remarked that
was purchasing the stock, or nad purchased, and
that others were purchasing IL; II was such
GOOD THING;
in the conversation before the last Mr.. Bliss stated to
me that 1t was a coal company, and that
a large bankers and brokers' lrrn HAD taken
an option, or mad made contract to take an
option, OF large portion OF tue STOCK, and II that
option was acted on Is would put the STOCK up to
very large amount IN the market. He further said
that the company were doing well ASIDE from any
speculat0nS, aud had
GOOD PROSPECTS,
before 1t, and II would be dvidend-payng stock.
Inc witness then went on TO state how he had writ
ten order, the faith OF these representations,
which he gave to MIR. Bliss 10 place III the hands OF
his brokers' Messrs. Dibpc Y cambos TO purchase
900 shares OF the stock fifty dollars per share;
In hanang the order TO Bliss witness said to HIM
that he was in no condition to take any
risk, and that ne could not lose any money; Bliss
stated to witness In one Of the earlier conversations
tnat he was counsel for the company. ana that nc
was 'inside'' and knew all about 1t; Bliss gave no
specific description OF the property but stated dis
tinctly that IL intrnslcally valuabe-that 1t was
q company tnat was to pay q dividend or would pay
a dividend. Tne balance Of the witness testimony
may be briefly summed up by saying that the stock
was purchased that 1t soon after deprecisted IN .
terrible manner; that he called Mr.. Bliss atten-
t,on to ihas ,act ous mi VII. siss sst continued 70
"HOLD ON TO IT."
until, finally, plansn ascertained the whole thing
to be worthless and sold 1t at loss Of some
$50 0Oo which ne now seeks to recover.
The witness cross examination by MIR. Cram
did not materially alter his direct testimony.
Bliss to Hawkins IN the form OF printed circular.
in which the
WYOMING VALLEY NINE
was depicted In glowing terms as rich crow TO
pluck. He also read letter from Hawkins TO Bliss
indirectly charging the latter with fraud In the
At this stage the court adjourned until this morn
ing.
CSuELTy 70 The POLICE.
The President Of the :. p. g. A. After a