New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-15
FINANCIAL EPISODES
SLIT AGAINST DANIEL DREW.

SILVER MINING STOCk UNDER FALSE hErhh
sEgrATIOSs.
During the earlier stages OF the panic, when Ken
Won Cox g. Co. suspended, it was freely announced
ON the street that Stephen H. Alden large operator
dealing extensively in stock privileges, known as
puts aud callsp and having bis headquarters at
the Office of Robinson, Chase d. Co. in Broad-st bad
laid down on his puts" Mr.. Alden who, like
other heavy dealers had succumbed to the pressure
is understood to have adjusted his puts to the
satisfaction Of those with whom he dealt.
Having settled this matter, Mr.. Alden has turned
his attention 20 Daniel Drew whom he charges with
inducing him to buy 1l.000 shares OF QUICKSILVER
Mining stock costing $612 262 CO. by means OF iaise
representations that the stock would rapidly appre-
ciate in value and thus insure handsome pronP
Mr. Alden further claims that while be was buying
this stock Mr. Drew was selling it to him, or as 1t Is
termed on the street. was unloading upon him.
Mr. Alden has therefore, begun suit, through his
attorneys Messrs Birdsall g. Friend of Wall-st. to
force Daniel Drew to refund $4,000 which he lost
by acting upon the alleged Misrepresentation APP
pended is copy Of the complaint:
THE COMPLAINT.
Stephen II. Alden. plaintiff. agt. Daniel Drew, de-
feDdant-stephen II. Alden. plaintiff In the Sbove en-
titled action. complains against the defendant thereh'
and respectfully shows to the Court as follows:
That during all the times and dates hereinafter men
TONED the paiutf was accustomed to purchase ana
City OF New-York, which fact was well known 10 tue
III That during eaid times and dates the defendant
was well known 10 he large dealer and operator In such
stocks and In said city and 10 have been sue
III That during the same period the defendant was
either director or the president OF company ouy n-
corporated and called the Quicksilver Mining Company,
which said Company had for time prior to January
1872 the plaintiff IS informed and believes duly exc
cuted and delivered, and caused 10 be duly recorded.
property aud franchises TO secure the first
of $500 0o aud also Us second mortgage bonds 10 the
OF 81 1000, and also its second account 10 the
amount S636l7l which said second mortgage con-
ains condition that the same shall he paid Dy any sur
Plus moneys in the possession OF the Company before
they declare or paw any dividend on ther stock,
and the SAID mortgage mortgages were valid lien or
liens upon such property and franchises ana sad COM
pany had also Issued its capital stock 10 inc amount OF
100000 in shares OF $1OO each That during the same
period he defendant from time TO time engaged In
Der Of the shares of the capital stock Company,
and was largely interested In tue sale OF said capital
stock IN the market and inducing ana causing others
TO purchase the that from about the month OF
January 1872 until about the list OF June following the
stock Company upon the market IN the Guy
OF NeW-York, TO limited extent, and the plantin,
during that period made small purchases ana sales OF
the same which Tact well known 10 the defendant;
also fact known 10 the defendant that the
planif was person " large means ana acc usomea
10 purchase stocks and other securities in large amounts
w. That about the LIST OF June, 1872 the plantl was
the Of only 90 shares OF the STOCK OF sald Com
pagy; that about that date, and at various times
between that month and the mouth OF July 1873 the
1raudulentlT Illegally c0nrriVln1
tending 1T 10 be generally believed by those VINO
were accustomed 10 purchase and deal Ia Stocks IN
cuding the plaintiff that the stock or said Company was
OF great value and would soon greatly Increase In IT'S
market price and value and that tue same was ana
would eG means OF p,ohtaIe LIAM and Oh Se ~
tue plaut and others In the SAID City OF New-fork
oa that IN sport time ali VI the first mortgage bonds
OF The said Company would be paid and canceed that
dividends on IT'S capital stock; that the said Company
was such prosperous condition that its stock could
not fan In market, aud that said Company had suf
Client money on hand IN gold pay It's first mortgage
| bonds and have surplus Of tloo,0D TO apply toward
paying the dividends on ITS capital stock that said Com
pany was about 10 begin paving said bonds and begin
| paying dividends on It's preferred STOCK DIV the lst
500 900 OF the stock Of said Company, and knew all
about Its condition. that he thedeendnt desired TO pur
chase more stock that he was about To- advertise
that said Company was ready TO pay tue nrs morgage
bonds thereof and that said stock would then go very
| high In the market price; that said Company would
certainly paw dividends both its preferred and COM
mon stock and advised this plainn 70 maze large pur-
chases OF such stock, and 10 sell what - known as
nnfsp of the same That the said defendant frsudu
ently and illegally contrying and intending 10 cause
10 be believed by the plaintiff and Others, as herenbe
fore stated that the stock OF said Company and
would of great value aud that the same was means
Of profitable traffic ana OF safe investment as hernbe
tm stated did 1t to he advertised in one more
OF the pubc newspapers in the City OF Newfork during
tho period aforesaid, that the said Company was pre-
Jared TO pay first mortgage bonds, and d authorize
one OF more persons in said city to make BIDS OF per
Company that he represented would be paid on such
stock during the month OF Nav 1873 and thereby caused
said ciy that of the bonds Of said Company had
| been paid in gold. .
that each the Statements representations,
acts and practices Of the said defendant we're false and
purpose OF inducing plaintiff and others 60 make
Of the stock OF SAID Company; except that the
sd Company did its first mortgage bOnds but the
plaintiff IS informed and believes that it borrowed the
money or portion thereof 70 enable II " make such
VI Tnat because OF the said false and fraudulent acts
practices, statements aud OF zoe aeenI
among chose who accustomed to purchase stocks
aud securities in the market and was believed 1y
fhia plaiutn that stock OF SAID Company was OF
great val and means OF profitable traIc and OF
investments thatas believing ana ON the Iatn anu
credit of false and fraudulent acts ana pracces
and representations OF the Defendant OF Tue
fasty and fraud whereof the psiniif was Ignorant ne
wear 1917 and divers times and dates between that
day aud the 81 day Of July 1873 purchase esrncatSs OF
thc stock said Company 90 the extent 0l about O
shares paid therefor about the sum OF slS2oa Co.
er that Al one tme during the period the de-
PENDANT did hold and Town large hummer OF tue safes
~ te stoek of said Company aud during that pert
| od aud while making the said false and fraudu
lent statements aud representations berenOefote al
iages ami while he was guilty OF the said false
Sandleul acts and praetlces and while he was endeav
oug induce the pslniin and Others 10 believe thaI
and he source OF profitable traffic aud OF
ment engaged IN selling and disp0siug VI the
and causing the plaintiff anu others 10 purchase
Will Aud the plaintiff that the stock OF
f aa eaints did not materially increasc in Its market
price and value during period Aforesaid out on the
contrary depreoated aud became less ana !ess vaua
be aud became worthless the market than the prices
which the plaintiff paid for h,s said stock and was not
at any time intrnscay worth its market price, which
facts were at ali times well kno to the defendant
| TX That By of said false and fraudulent acts
and prac tees statements and representations OF the
sad and by OF the premises herein
be- stated the plann, sustained damage the
231 day OF October, 1873 the amount Of s02c9l o.
| Wherofore tho plaintiff herein demands Judgment
against the said defendant for the sum OF s0sl 70 FOR
ms damage susta ned Aforesaid, together with the
interest thereon from 23d day Of October, 1914,
uether with the OF this acton.
BIEpsAIL d FIIESD, plaintiffs attorneys,
No. VI DiexeI building.
A DECLINE IN STOCKS.