New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-24
WALL-ST. ALLEGATIONS.
A SUIT AGAINST DANIEL DREW.


oNE MILLION OBSERVATION-DISCLOSURES BU-
BINo THE PLAINTIFFS.
An action was begun on Saturday against Daniel
Drew and Others, which in connection with the suit
recently brought against him by stephen III. Alden,
the complaint i'll which published in THE TBIB-
UNE OF Nov 10, illustrates the ways of professional
STOCK operators In Wal-st In the previous instance
Alden sought to recover from Mr. Drew $202 091 %
alleged to have been fraudulently obtained by the
defendant through a conspiracy with Others, by
which he succeeded in deceiving the plaintiff in re-
gard TO the value of certain Quicksilver mining
stock which he sold to Mr. Alden at price far be-
yond its actual value. In the complaint in the
present suit it is alleged that at the same time that
Drew was unloading his Quicksilver stock upon
Alden he consplrng with him and Eu-
gene n. Robinson to unload his Canton stock
upon Biedermann & Co., whom they yictimzed
to the extent Of 81 100000 as is charged The main
facts in the transaction appear in the complaint,
given in full below. The Canton Company was or
gained somewhat more than thirty years ago, for
the purpose of improving certain lands known as
Canton. and lying adjacent to the City of Baltimore
Nearly 81 10000 have been expended by the Com
pany in improvements, grading streets, building
piers &c. and in aiding in the construction of rail-
roads designed to enhance the value of the property
Stock has also been subscribed by the Canton Com
pany in various manufacturing and indus
trial enterprises which it was proposed to
establish their lands. The income oil
the Company arose from sales of lots and
water frontage and ground rents on leased lands.
In November, 1872, the plaintiffs claim that the
capital stock of the Canton Company was S4,4SOOOO
of which Mr.. Drew owned S3.OO0,0OO that he repre-
scented to this plaintiff that this of great
intrinsic value and in view of certain improve
m in If ptiona nd i'm
ton. would advance greatly in a short time; but
that Robinson e. Alden, also stockholders had
become needlessly alarmed and were anxious to sell
out. He added that he would not sell the stock he
held under any circumstances until 1t should
advance to $50 or $500 per share its then market
value being about at par Influenced solely by
these representations, and ignorant of the
actual condition or prospects of the Canton
Con pany the plaintiffs allege that they purchased
Canton stock from Robinson d Alden, in all to the
amount of 1850 shares for which they paid
S1,S07109 %, and they that they believe that
1900 shares of this stock have been the property
of Mr. Drew, which he quietly passed to the PLAIN
tfs through Robinson q Alden, who in this transac-
ton acted as his brokers' The stock never advanced
above the price plaintiffs paid for it, and when
they were compelled to sell in September last they
did SO at loss of about 100000. Hence the pres
ent suit The following is tho complaint in full,
sworn to on information and belief by Jacob
Rubino JUNIOR partner in the firm of Biedermann q
Rubino:
THE COMPLAINT.
Supreme Court City aud county Of Se,o York Ernst
H. Bedermann and Jacob Rubino agt Daniel Drew, En-
gene ~ Robinson and Stephen H. Aden.-The plaintiffs
in the above entitled action complain against the de-
PENDANTS therein aud respectfully show to the court as
follows
FIRST That during all the times and dates hereinafter
mentioned the plaintiffs were copartners In business III
the City Of NewYork, under the firm name and style oil
L. II. Biedermann Co.. and as such firm, were accus
toned 10 purchase and sell stocks and other securities
in the market in said city, business and source OF
profit which fact was well known 10 the defendants,
and each Of them.
secondv. That each OF the defendants we're during
the same time to the plaintiffs 10 be large and
successful dealers ana operators III such stocks ana
securities.
ThirdIy That during the period OF time there
was company or corporation duly incorporated and
existing In the State OF Maryland, called the Canton
Company of Baltimore, which said Company corpora
ton had prior to that time Issued It's capital stock to the
amount Of about sl,43O.000
Fourhly: That during the time the defendants,
or one or more Of Them the holders and owners Of
the stock OF said Company and were interested IN the
sale OF the same; and the defendants Drew and Robn-
son we're active directors OF said Company. and we're
members of the Executive Committee thereof and were
including its prospects, operations, and property
F;nhlp That some time about the month OF Novem !
ber in 1872 defendants wrOngully and fraudulcnty
entered into and formed conspiracy among themselves
fraudulenty and Illegally TO cause 1t to be generally De-
leved by those who accustomed to purchase and
deal in stock and other securities in the market in the
City OF New-York and especially to the plaintiffs
10 believe that OF SAID Company of great
value and would soon greatly increase in its market
price and value, and that the same was and would be
"A means OF profitable traffic, and prove safe and prof
tabe Investment that the object and purpose OF the
defendants in forming said conspiracy TO cheat and
defraud the plaintiffs and such other persons might
purchase the stock OF said Company by inducing them
by divers false and fraudulent to become largo
purchasers ia the market OF the stock Of SAID company
and 10 enable the defendants to raudulenty sell aud
dispose Of the 10 the plaintiffs and others at more
than its real value such OF said stock then
owned and held by them respectively, aud especially to
enable the defendant Drew thus frauduently TO sell
and get rid Of such stock was then held and owned
nv him At prices beyond its value by thus inducing
the plaptfs and others TO buy the that at that
time the defendant Drew was the holder and owner
of about thirty thousand shares OF said stock, ~ the
plaintiffs are informed and believe. which said
shares were of the par value OF one hun
dred dollars each; that the defendant aud
each OF them then well knew the real
condition and prospects said Company, and the real
value OF the thereof and we'll knew that said stock
would not enhance value beyond the value thereof
or thereaDouts and well knew That 1t was worth less
than the prices at which was purchased by the plain
tifs, as hereinafter stated
Srthy: That the purpose OF carrying out said
spiracy and fraudulenty causing the plaintiffs TO be-
neve that the said stock would greatly in is
market price and value, and and would he
Of profitable traffic and safe investment and to induce
the plaintiffs become large purchasers thereof as
herenbefore stated defendants frauduenty agreed
ha mis- inf mad nd
believe that the defendants Alden and Robinson should
falsely and fraudulenty pretend to the plaintiffs to be