The Portland daily press., 1882-04-24
A QUEER SWINDLE.
Collapse of the American Electric
Light Co. of Boston.
A SUGGESTIVE CHAPTER FOR SPEC
ULATORS.

BOSTON, April 22.-The Herald will anounce
| in the morning the collapse of the American
Electric Light Company of Massachusetts.
| The company owes $15 900 and has no assets.
The firm was organized by prominent Boston
gentlemen upon representation OF New YORK
parties who included Col Fred Grant, Stephen
Moriarty, partner of jesse Grant, Edward
M. Fox, Geo. Crosby VIM. Mcmahon, and
Alex Bernstein, the electrician. These par
ties secured a charter about year ago under
the general laws of Massachusetts and sold a
majority of the stock to Edward Ell. Goff for,
it is believed. the firm of Prescott, Hersey,
Hastings 81 Co., which has since dissolved
The company was reorganized with Col. Fred
Grant as president; Edward III. Golf, vice
president; Eugene M. Hersey, treasurer; Ed
ward Fl. Hastings, secretary. Among the di-
rectors were William Window, formerly Sec
retary of the Treasury, and other prominent
gentlemen of Washington A conspicuous of
fee was taken on fremont street, an elegant
display made Of incandescent electric lights
and by a prominent advertisement in the
daily papers. Overtures were made to Cyrus
S. Haldeman, New England agent of the
Pennsylvania Railroad Company, to become
general manager which he finally accepted
and Immediately began operations to push bus
ness on a commercial basis A plant was pre-
pared aud the parent company in New York
called upon for machines and lamps and at the
same time efforts were made to place the capl-
tai stock upon the market to raise funds for
the New York parties. 1t was soon discovered
that supplies could not be furnished and to
utilize the power engaged it was necessary TO
call upon the American Electric Company OF
New Britain, Conn, for dynamo machines
and arc lamps. About this time the stock of
the parent company was advertised for sale in
Boston at very low rates, thereby destroying
the market of the Boston stock so that large
payment became due to Messrs. Grant and
Moriarty which Mr.. Golf found it impossible
S.,, Of h taf i0O
been broken upon him. New contracts were
made and promises renewed to deposit all
stock in the hands of trustee fund and pro-
tect the Boston company. These were again
violated and Mr.. Goff's protest led to an inter
view with the officers of the New York COM
pany when it was arranged by Grant and
Moriarty with Mr.. Andrews as president, j.
M. Fox, secretary, and ex-senator Platt, prln-
cipal director. to virtually consolidate the pa
rent company with the Boston branch, believ-
ing that the enterprise and business ability OF
the Boston management could be made more
available in developing the entire interests,
This, however, failed Of contamination after
several interviews, both in New York and
Boston, on account of discordant elements
which could not be harmonized. During all
this time the capital stock of the New York
company was offering at less than half its par
value while the Boston stock was held and
sold at par until finally the market for it was
broken by New York parties unloading stock
weeks ago Mr.. Golf notified the principal
stockholders, as well as Grant and Moriarty.
that he could not go on with his contracts In
the first place because of the impoSSlbil1ty TO
raise money in large sums under such circum-
stances, and because the parent company had
never given any valuable consideration for the
money already paid; that they had no syste m,
no machines and no lamps of any value nd
that he had never used anything belonging to
it excepting the name, and desired to hand
over all the papers, contracts and stock to
some person authorized to receive it, with the
designations of himself and associates. No at
tention having been paid to his several re-
quests he closed the Office of the company, took
other quarters and organized another company
under the title of the American Electric and
Illuminating Company, based upon contracts
with the New Britain Company in this city.
Arrangements are being made to exchange
stock with the victims of the other company
who purchased through him or his representa-
tiyes with view to their, protection. Only
about two hundred shares of stock have been
sold, through Mr.. Golf all Of which was put
chased from Messrs. Fox, Crosby and McMa-
hon but not single share has been sold from
the treasury stock belonging to the company,
How much has been sold by various New York
parties through brokers is not known, bat as
the company issued 10000 shares of which
1000 belonged to the parent company and 1000
to the Boston company as treasury stock there
are necessarily 5000 to be accounted for, and as
tho stock has been offered lore as low as vi a
share and from that up to $40 it is probable
that large quantities have been disposed of.