New-York tribune., 1882-04-11
A SUIT AGAINST G. B. FISK.
SERIOUS ALLEGATIONS OF FRAUD MADE.

| GENERAL FISK CHARGED BY r. A. PaGo WITH MIS-
| REPRESENTATION IN CONNECTION WITH MINING
INvEsTMENTs-wnAr THE DEFENDANT SAYS.
| Francis A. Fogg has begun an action against
Clinton b. Fisk to recover $780, .73S So alleged to
have been lost by him ia mining speculations
which the plaintiff was induced to take part in
through the alleged false and fraudulent repre-
sentations Of Mr. Fisk. Justice Donohue, in tho
Supreme Court. Chambers, yesterday granted an
order of arrest against Mr. Fisk, fixing bail at
| $4,000. Thomas T. Buckley and Isaac b. New
combe, of Brooklyn, became suretes for Mr.. Foeg
IN the event Of his losing his suit. John X.
Dos Passos, the attorney for Mr.. FOgg, was out
of the city yesterday but his brother, Benjamin f.
Dos Passos, furnished the particulars of the case.
He said that the reason why application was made
to Judge Donohue for the order instead of to Judge
Barrett, who sitting in Chambers, was that tho
former was the only Judge in the court house when
the application was made.
Mr.. Fogg, in his affidavit, says that he IS broker
in this city, In 1873 he introduced to Mr.. Fisk
by Andrew Pierce, the president of the Atlantic and
Pacific and Missouri Pacific Railroad Companies.
Since that time he has been engaged in many inn
portant business transactions with Mr.. Fisk who
was treasurer of the railroad companies
mentioned and occupied other positions Of
honor and trust. Mr.. Fisk a General
in the Army, a prominent member of tho
Methodist Church, the founder of Fisk University,
Tennessee, and was generally regarded q man Of
irreproachabe character. He was also the princi-
pal member of the firm of c. b. Fisk & Co., bankers
and brokers' with whom the plaintiff kept an
count. About December /, 1879, Mr.. Fisk informed
the plaintiff that he had made large investments in
mines in the Globe District, Pinal County, Arizona,
including mine called the Mack-Morris. He
hbied letters and documents relating to the mines
calculated to impress the plaintiff favOrably with
the investment The persons interested in the
Mack Morris mine had already organized the Mack
Morris Mining Company. of which Mr. Fisk
president. The capital stock of the company was
100, 900 shares of the par value of 800 each,
amounting to SIC, 900. Mr. Fisk offered to sell
the plaintiff stock IN the mine asserting thatit
had been purchased for $4OO, 900, one-half having
been paid for in cash and the remainder in stock,
the owners agreeing to leave $50 900 in the treas
ury of the company for working capital. 1t was
stated that among those interested in the purchase
s SsSs Of s% Nys5FS and and a tou s. I TaS
which was divided with Mr. Stout and
by Mr.. Fisk, had invested 100000, Mr.. Stout
$5O,OO0 and he had likewise invested $50, 600. II!
| informed the plaintiff that no stock could be had
for $4 share, and induced him to purchase 1000
shares at 30 per share. The plaintiff has been IN
formed by John I. Williams, the former partner of
Fisk, that in the transaction mentioned Fisk was
acting the agent Of +. II. Rogers, and
that he collected "a commission of $3.50
from Rogers for selling the, stock at $4
that the statements of Mr. Fisk that the stock cost
81 share. and that he invested $4,000 In the
mine were false.
In February, 1850, the plaintiff purchased from
Mr.. Fisk $500 shares of the Golden Eagle Mining
Company's stock for which he paid So 75O; He was
induced to do this representations from Mr.. Fisk
in sight equivalent to $2o0'oOo in dividends and
hat ftao hah hnar NTH
tai of SIC, ,0OO and that controlling interest
in the company pan had been purchased for 100000;
become interested in the scheme and that Mr.. Fisk
had actually invested in the company $25, 900 In
cash. Every statement and representation Of tho
defendant, the affidavit continues, in relation to
the value of this mine, was unfounded; Mr. Fisk
received his stock for nothing and made a clear
profit of $1,000 and upward out of the transac-
tion.
The affidavit further asserts that the plaintiff was
induced to invest S405OO in the Silver Era mine IN
Arizona on representations made by Mr. Fisk that 1t
was very valuable mine that he had investigated
it thoroughly himself that he had invested $500
Of the money OF his son in tn, the mine and that no
dent the defendant Fisk as treasurer, and John
L. Williams, of Fisk's partners, secretary.
The company so organized. The affidavit as
serts that the representations made by SIr. Fisk
regard to this mine false that he did not IN
vest much money In it as he pretended, and that
he had exhibited a cancelled check for $4,000.
drawn on the Continental Bank to show an actual
payment made, whereas the plaintiff asserts
that the check was cancelled in Fisk's own office
and never deposited and that another check for q
like amount on the National Shoe and Leather
Bank TO the order of H. 5. Saunders and George Is.
Walker, and indorsed by them, was used in sim
liar manner.
The action is brought to recover the sums of money
paid by tie plaintiff to the defendant, amounting
in the aggregate. with interest, to sos, ,73s 80.
1t is further stated in the affidavit that the sources
of information and the grounds OF belief as to facts
arise from information derived from John L.
Williams, former partner of Mr.. tisks as well as
Williams and Colin +. Mackenzie against Mr.. Fisk.
An affidavit of Henry s. Saunders. which is at
tached to that OF Mr togg asserts that he sold tho
Silver Era mine to &. Ii. Fisk for a total sum of
500. .OOO and that this included two other CLAIMS
the Etna and the Caledonia; lie also asserts that
Mr. Fisk presented check TO him for $25, 900
which he indOrsed, but ON which he never received
any money.
WHAT GENERAL FIsK's COUNSEL SAYS
Wheeler H. Peckham, the counsel of General Fisk,
said last evening that there was absolutely nothing
upon which to base the charge of fraud made
against his client. He had not seen the aflidayits
upon which the order of arrest granted. and
therefore did not know what the specific
allegations He knew. however,
how the suit came - be brought,
and thought he understood the animus of those who
were instituting it, General Fisk Mr. Peckham ex-
planned, formed a partnership with j. T. Williams
and G., f. Mackenzie in 1879 to carry the general
brokerage business Mr. Williams had no money
except the So 900 which he borrowed from Mr.. FIsk
for the purpose. Mr.. Fisk also put in $4,000 be-
sides, and Mr.. Mackenzie had his seat in
the Stock Exchange. The partnership was TO run
for three years In January 1851, Messrs. Williams
and Mackenzie began proceedings against General
Fisk for an accounting and a dissolution OF the
partnership, claiming that he had received largo
amounts OF commissions mining investments for
which he had given no account Air. Peckham said
that il WAS with great difficulty that he had pushed
the plaintiffs into completion of their case, which
was being lried before Mr.. Brownell as referee.
Rnt about two weeks ago he had compelled them
TO rest The defendant then proved that the two
other members of the firm just before the close Of