New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-07-18
THE COURTS.
CHARGES AGAINST HIS BROKERS'


Charles A. Hotchkiss began short time ags
an action in the Superior Court against George H. Ken
nedy aud William j. Hutchinson recover SlI5393 AZ
rs damages sustained by him through the alleged fraud
Of the defendants In certain stock transactions aud also
for an accounting In regard certain other
stock transactions between him and them II Ia
ALT ged in the complaint that Mr. Hotchkiss between
July !, 1880, and January 1882, a customer OF
the defendants who Stockholders, and during all
this time had large ,angs them. About Decem-
Der 81 1881, Mr. Hutchinson told Mr.. Hotchkiss that
the firm OF which he member, together with
tain other firms had formed combination for the pur-
chase OF large amount of preferred stock OF the Han.
nbal and ST. Joseph Railway Company Mr.. Hutchn-
further said that he had been engaged by all the
firms make all the purchases Of stock and that he had
the sole and absolute control OF the whole
matter. Prospects Of large profits then
held out to Mr.. Hotchkiss II be would In
vest some money in the purchase OF the stock in
question through the combination which Mr.. Hutchin.
represented Relying upon these representations,
Mr.. Hochkss authorized Mr.. Hutchinson to buy for
him 5000 shares Of the stock Mr. Hutchinson after.
ward told Mr.. Hotcnkss that he had bought the 5000
OF stock for him at aggregate of S406 400
and received that amount in payment for the stock
so have bought. All these represen
tations Mr. Hotcss alleges were false. There was at
no time any combination for the purchase Of
the stock OF the Hannibal and st. Joseph Railway
Company, and neither Mr.. Hutchinson nor his firm
employed to control direct It's purshases More
ever the deendants never IN fact ucnased the $500
stock for winch they received payment by Mr.
H0tchss but the stock delivered 10 MIN was stock De-
longing to the de enOants or la which they bad the Ocne
fetal ownership in whoe or In part. Mr. Ho cnklss as
ser,s therefore, tnat the sales Of STOCK 10 nm were
fraudulent ana void and thaG he was elected TO dsvow
them. On day "a 1852, he demanded oil ths
the stock and pay him $4o3,323 AZ,
the due him after deductng the amount received
diyldends and adding interest on the amount PAID or
the stock. The defendans refused TO comply WIN ms
the the price paid for the SOCK and
its value at tue time OF the discovery of the al
For second cause Of action 1t further alleged that
Mr.. HoIcnkiss July, 1880 employed the defendants 10
mis- brokers the purchase ana sale oi Stock and
To carry Ihe same as iong should have sufficient
amount deposited with tuem as margins 10 protect
tnem from loss. lie agreed u pay the de rndaDla
Oneeghth of per cent ON all purchases aud sales made
BY them his account The transaction under this
agreement lasted from July, 1880 till January l. 1857
During this time the defendants maze Large ana nuer'
sales aud purchases or niil anOunuugln all 10 over
So 100000 The defendants In all THESE traisacuona
charged and Received their commission OF oneelgntn Oh
per The defendants nad from time To time iur
nisued him VIII wnat purported To be statements oil ms
account, put haa never fehaeleu 70 nun any i"n
aud correct account OF the sales r ana p gl-
ments rendered we're incomplete IN not mentioning
tne OF the persons from wnom or to whom the
stock bought or s0d Many OF the TRANSACTIONS re-
pOr. ed statements recty reported aud,
asserted III INSTANCES stocks were cnagod TO
been 0Ou hC the Defendants. In oner Instances,
tue resorted IN the statements to have oeen
a. 80 - ,ss were renore,I "a. have bee aid on ac.
count OF the plalnlin, which not sold, but
by the Geenuants themselves or by some one In
interest.
IL is finally alleged that there "many other
and omissions and Improper charges and insufficient
credits la the s.i4 seCelnenIs Judgment Is
uetnaude d JnaL Ge render all
their purchases sales on Mr.. Hotcnksss account
and that the defendants pay snail DO
proved 10 due upon all accounting Jndge
Iruax yes erday grained oruef directing ar Hotcn-
kiss TO nle an Undertaking the sum Oh 800. as Sc
cury for Le costs vi the action the ground Lnat no
Ia a Ou-resideuJ,