New-York tribune., 1875-12-06
LOCAL MISCELLANY.
ALLEGED FRAUD In ISSUING STOCK.


ALLEGED FRAUD In ISSUING STOCK.
WHAT WAS PAID To TREN0R W. PARK AND OTHERS
FOR USsxrLAINED sEEvIcrs-rHe MANAGE
MENT or rHE NHw-YORx CITY CENTRAL UNDER
GROUND HALLWAY coMPANy-A SUIT BY FIX
PRESIDENT BARNES
An action has been begun in the Supreme
Court in Du;chcss County by oliver W. Barnes against
Trenor W. Park. George H. Brown. John Schultz Jo-
seph Selgman John Hoyt, Andrew Mckinney, Charles
H. Kimblll. Grosvenor p Lowroy, Charles j. Canda and
Abba A. 5oloyer. and s pending The piaintin Id
his sworn complaint states that in 1872 he was Director
and President OF tho New York City Central Under
ground Railway Company and owner Of 40 per cent Oh
contract made by the Company with Francis T. Byrne
for the building OF the road. an interest when
no could have then sold for $l50.000 cash. The
Company indebted to him $4,000 AT tnst
time only III shares Of stock had been Issued, oil
which he held 80 shares. Altogether he states his
interests the Company could have been sold on March
26 1872. for 100000. At that time two Of the de-
fendants made assurances him that they had bona
Gde subscriptions OF s., 100000 which would be paid II
they obtained control and management OF the corpora
on and that the construction OF the road would DO Wig
orouy pressed to completion. IIo induced by these
assurances sell all his interest and his sixty shares In
the corporation they agreeing that In case then pend
ing amendment to the charter OF the corporation was
passed they would pay him bis 800 and deliver MIN
1000 shares OF the capital stock OF the Company
which said stock is to be full paid stock" The pur
chascrs reserved option in case tho amendment was
not passed purchase the rights of Mr. Barnes on the
same terms providing that iii his right had been PAID
they would not issue than 100 shares of STOCK
nor enter into any contract for tho building OF the road
The amendment was not passed. but the purchasers
chose to carry out contract for the purchase paid
the cash and delivered certificates for 1000 shares OF the
stock the plaintiff and board OF directors was
elected and plaintiff says knew nothing further OF the
internal arrangements the Company until in 1874 ho
obtained access the minute-book Of It's Board OF
Directors.
He now charge, that the 1000 Aaros we're not they
prpored be- and what he received them for bona fds
full paid stock absolutely worthless being una n.
fully issued without plaintiffs knowledge and with IN
tent deraud nim that the 1000 shares OF stock were
all Issued To Trcnor W. Park. John O. HOyt, George H.
Brown, and John S. Schnltze paintin Is informed,
without any value received by the corporation, and was
afterward all transferred TO Brown without cOnsdeia
ton express intent OF defuding the plaintiff and
to use said worthless and fraudulent stock in payment OF
the obligations OF the plaintiff An extract from the
minutes OF the meeting on Jan H. 1873, at which tbis
stock issued, given in the complaint, and shows
that there present T. W. Park, Geo. H. Brown j. 8
scbutze J. o. IIoyt, A. 4. Selover C. j. Canda G. L.
Kimball. G.. T. LOwrey, A Mckinney. John Schulze
Chairman of the Committee ON auditing bills against tue
Company reported that the following had been presen'ed
to the Company and approved by them: oooo
@ advances 10 this Company s5oooo
Ironor ". ParA services To this Company z9O90
Geo II Brown advances this Company 10000
John = SchultLe. services and advances TO this Com 80
oV'"oV
Total
II was then resolved that the officers OF the Company
be authorized directed TO the stock Of the Com
pany 10 the persons whose bills have been audited and
allowed this meeting for the respective amounts due
them.
The plaintiff charges that Messrs Hoyt, Park Brown
and Schuze had presented bills vouchers aud That
the corporation did any OF them anything,
but this was merely got up 70 gVe ,OcK "hcn uusl to
circumstance. would be worthless TO the plantn 70 de
fraud him The plaintiff further charges that sl0se-
uenty the directors OF the Company Issued 2iOO shares
IN much the way, and that hls rights had not
been extngushcd by he delivery OF fraudulent STOCK,
this was further fraud him by reducing his shares 10
A minority lie asks, therefore, S250OOO damages.
Charles J. Canda examined on Saturday rs wit
ness before tra at length and denied any intont
to defraud cheat the plaintiff but did not sye any par
tcuars OF the debts services for which the 1000
shares we're issued. Hugh h. Cole appeared Tor palnh
MIR Niles for G. j. Cinda and JOEu y. WDitinS aud Jas
T. Iowrcy for others or the doicndants.