, 1875-03-19
Alleged False Representations
Regarding Its Bonds.
The Accused Denies the Truth Of
the Allegations.
Statement OF the Partners In Tho New
York House.
lss Relations with Tho Cook County
National.
Altcn's Cllnrgcs Denied.
CAPlAS SUITS.

Aliens ClinrECB Denied.
cAPlAs SUITS.
ALLEGATIONS OF C0Sri.A1TASTs.
Two suitz wcro begun yesterday against b. r
Alien, the rrcalcnt Of the laso Cook County M.
tlonn1 BANK, fn which! severe allegations arc
made Tho first suit wns brgun by Dcrtllold
Lowcnthal, aud. In tito Affidavit Alcd on which
10 obtain caf;ast tho plaintiff atates that about
the 18th Of Jannnry last. F. L. Fake, note-
broker, applied to llln to iinluce him to p,lrclaae
noto for $4,000. made by A. r. Anlroas 4
Co., dated Ian. 1B 1876 payable In sixty
days, aud indornctl by tl.cu. With the toto wau
offered aa collateral security twenty 1.-Two bo,nl4
Of tie Des hlonce Gas Company for e1,000
each, iesuod Eov. i, 1879. aud payable Nov. l,
1882, and numbered from to s, D, 10, IL to Is,
II, 49, 20 a. %. 90 20, so, ii, 81 to 81, 49, and
40. These woto all rtgncd by u. r. Allos, A.
President, and Harry West, aa Secretary, Of saitl
Gas Company, boro interest at 10 per cont pcz
nnnun, and purported to DO secured by n trust
tloed and trst Hen OIL all tt,e property and fran
chisos OF tho Company. Each boal contained
tho following clauae:
This ID orc Of 1crics nj flrst- -nortgnGs bohs Num-
gale to 500 oo ali Of tycn tlsie herewith aud tecurol
by decd ct trust !htel Feb IT, 1875 conveying TO F.
Java, I'll ho 1sb ill., M and tes:.t u nsh c shs's e All It
Des atainca Gus Company has afall hereafter
acquire In md 10 all e personal md real e4tata, r1,
franchises rents+ aud CaseiHruts OF sa!u Gas COl,any
1u srat fur tho cnet of the holders Of all Of ta ,,st.
rlortEagu honda aud coupons, with power. III O.
my Of tein, posserson at au.t sell tho sauc,
nnl 10 apply the proceeds to the payment Of said
bonds fha bond to 10 valid only whc, authenticated
Tr:tee. + ss''''a'' 'ppe'ue' hereto signed 's said
,Ir. Lowcnthal statca that tho bonds ofForcd
to him woro al authenticated as proytied In tito
honds. 1Io, however, declined to discount tho
noto or receive tho bonds until hc was bottcr,
ratatlol Of their va!uo aud validity. Fake TO-
fcr1cd him to .. +. Atlon, and that gentleman,
on being questioned, nsaurad Lowcnthal that tho
bonds were valid that he bud signed them, uud
knew their yaluo TINT they Ncro wo:th at least
par, md wore secured by n frat lien on tho Gas
Company's property. Actlugon these represent.
asionu. LoNeuthnl discounted tho note olferod
hy Fake, aud took tho bonds As collateral no.
curity.
Tho plaintiff now charges that he hna since
leallcd tAat
TWO SETS or noSus
nj liho character mud ailioltllt werc !asuc1, aud
That tho iirst isasoo, OF uhlch lo holds twouty-
lyo, is Unsecured, tho trust-dced necusl1M tic
last isa,lo, all of which aro outstanding. Ilain-
LII hna also discovered that 4. r. At,1tcns /
Go. stEnod tho noto at Alion'H request, and FOR
hla accoInmodatloI. that Fako acted % Alou's
banker, but concealed this fact, and that llo rad
tho amount received from tho discount over 10
Allen. Tho property OF tho Gas COMPANY
IS only worth enough to pay tho trust deed nov
exist1ng a. L. Andrcau. composing Tho firm OF
a. 1; And5eas Y 4 Co., is lnHolvont; 0. i. Allen
Inns left thu atato and Is living In Iowa, and
l.owcnthai therefore asks tint Allen NAV hn
l1rcHtct! aud hcl to bail to sccuro tho payment
9i any iadgmsnt tint nay 10 rendered ngaust
him III tho prcsont suit.
THE hErnyp a1rIT
Iho second suit ~ Cy Jo|sa II. Hammond, who
raln,a $4,000 under like circumstunroa. Tim
pSes H. so!ds issS sro No; Fl &C. 9 10 I'd
4, January laHt r. L. Fako applied to JDhu IL
Hammond 10 hayo him discount uoto for
500o' nado by A. r. Androaa 4 Co.. aud it,
'ofsed a by y y. + Allen Az sccu1ity for tim pay
nsns hnnau ., re nSe fHie offered for dopos a1
!5as Company, aud aigned by u. +. Allen, ey
Prcaldent of tho aama. Hammond, bcforo tlia-
EouMtinG tue note, made inquiry Of Allen cor
co,.ns c,'raa n ino saauo . q the bonas an Allen
lien on: the Gas Works aud secured hhy
= trust'doed Of tho Banlc. uo also atly,ecd hin
tn make thu discount. IA the security was ample,
y y on these assurances =; Hammond discounted
Il Ia claimed, to DO worthless. On this Allon
mas hohl to ball IN the sum of $4,000. Tho
pnLers, however, wcru not soryod until today.
The Operations Of Allen, which led to tIeso
hVto LII 1UllUHhs 4QG no&b fDHtn |
BY A. I. AndGcaa i Co. wns for bis acconmola.
Jon sololF:, and no furnished tic bonds to bo |
used az collateral security. Mr. Fake acted AZ |
esnker 1ip ~ tho transaction. and ua-
tangoment bolpg that Allen waa 10 mcot tic |
note when 1t fell due, Dir. Andlaas was !
nnablc to tako Y up. and was compollol to ask |
tn o1tonBion. II turned ont TINT tho mortgage |
so hoaa wore duplicates having. 1t III ezserod, 10
Bonds to tho amount Of e100,00o had bcon ts-
eued by tho Gas Company aud [,ut upon the New I
aoik market, but sosne objection betl,g naado to
thelr form, a duplicate issuo was made aud for
;waEied. tho frat ,salo being returned for CANCEL
tat!on. 1nBtcad.of destroying thou, Allou. ii IL |
Bald, made use Of thotn for collateral security in
tue lnannor indicated.
burilS whS 4 sops5t %d,. ,,v that Alien has bson
rccdings against him, satisfying tllo claims by
Eifing otbcr and good security, and, 1t is stated
Nth probability Of sreceus.
Mlt- AND1EAB
statad tnht no beeyo9, aB is bthted aloyO, That
Mr. Alien will uuko good tho securijes originally
EVEN bY others which aro ul.auastlouabIy oooI.
Z this IL uot dono, howcver, tllo6o personn tn
whom Mr. Androas u responsible need not have
!ho slightest fear. since sIr. 4. In fnlly sbin tn
pay them threo times over without liz ns,lH;,,sst
Inconvenience.
Last evening aIr. Allen and slr. Obadiah Jack.
n;'na 1n' ano attorney tor A. Hammond loft for Dos
Provo with case shat those bonds aro fuIiy a..
sareq a. stated BY ltm to tho complainsnts, and.
atl JACKSON, believing he will do TO- hns ndyisoI
ola principal to take 10 action uutlI AtB roturn
fso1n loss. '''"A"
AND TKT orHEAs.
Heat1ng OF tuete two aults yestcuf4y after,
ooon, Deputy bhorin Horn served civil sum
s,,s,, Mons on D; 7. Allen, Clar!es stowart, D i.
otInrphy, and Il. @. Mutt citing them 10 appear
~ tho April toru, Of the Bare,ior Court aud
1naWef the suit brought sEainat tllom by the
noaia o. IsAds for tho sum Of $500 00o Tic
99seiug found In 1Ir. Nurply'a oflce'
J 1n's III euat Ia one which grew ous Of the HIur.
FL ses totsefs!ons r. Ihe oook County Bank waa
III anti NJ 'tessng.houaa for margin checks. sud
sas,ns9 nu ., Mas brought BY tho Hoard Of Trals
esrinss sTs s. Allen end tho surcfiea ou h!a bond.
NJ ~ sua same oiacera also served procc.sca on
md f. hIn1al H. sns lnssance Of Issao 4. Foromun
Tho Superior Court sgainst I lin. D'0'Sn' 'a''s IN
THE NEW YORK FIRM. I!