Telegram-herald., 1888-02-22
ANOTHER BIG SUIT
NOW THE HYDRAULIC COMPANY.
AIR. Crow Files = Complaint in the so-
psrior Court. Charging the sleek
holders of the Loan and Dsr
possg Company with Fraud.


In the Superior Court yesterday bill OF
complaint In chsncery was filed by M. X.
Grow. President of the Grand Rapids Hy-
draulic Company. charging Stanton ID.
Loring. of Nentoa. Mass. and others With
fraud aud attempting 10 deprive himself
and others Of their interests ia the Hydrsu-
tic Company. The complaint sets forth
that STATION u. LoFing. Chas. 4. Rogers, K.
z. Young. Joshua Loring and Elijah b.
Phillips, all Of Massachusetts, applied 70
him 10 secure the stock, or controlling in
lerest in it, OF the old Hydraulic Company;
that that stock, authorized, Is $50, ,OOU, that
an agreement TO accomplish this plan was
made, and included the building OF sui
ficient system of water works for this city
with forty miles of mains, ETC.. 10 be in
operation Dy October l, 1887; that bonds TO
the amount of 81. 10000 should DC issued
10 DO this, 10 be secured by Deed OF trust
or mortgage 10 the American Loan and
Trust Company, OF Boston, Lorins and his
associates to furnish enough cash on those
bonds to do the work; that Loring et al. were
10 have $50 of the coo shares of the original
stock, Glow l6O, Isaac NJ. Weston fifty, and
the original stockholders about sixty shares;
these facts were represented to the original
shareholders here, and Mr.. Crow secured
the controlling interest Is desired, he getting
l64 6-l0 shares for himself; that Crow, Geo.
b. Sidelinger, John u. More, l.. Pason and
Joseph Penney were elected directors; that
SideiInger /. related by marriage 70 Loring,
and PasOn was connected IN business with
him, but has resigned. and Robert l. Shoe
maker was chosen q director IN mis- place.;
that he. Grow. is President, More Is Vice
President and Secretary and Sidelinger Is
Treasurer OF the company; that all the
shares of the stock but i've were assigned or
transferred in trust TO Lorlng. at his sug-
gestion, To enable him the better to raise
The means for carrying out the plans OF con-
struction, ETC.. this was the basis of agree
ment with the Trust Company. Of Boston.
and up n il that company issued, under its
deed of trust. certificates OF interest in or
shares OF stock, 10 the various owners thereof,
the total number OF shares being placed at
IL 900, and the individual interests at: Crow
3 $50, Willard K. Inman go. Chas. A.
Rogers 1850. +. b. Phillips l.O5O. Geo. b.
Sidelinger 100, L. NJ. Weston 1000, l.. ii.
ithey l00 estate of l.. II. Whitney 172, K.
p. Lorang 1850, Elisb Parker $3.50, Eilao
Parker, Trustee. 2S4, esi ate OF f. f. Fuller
| 344. John Il. More 100, Alfred .. Seke.l
| loo and Edwin +. Sweet 100; that
fl,-V
| planned, 10 run thirty years, at per
| cent, to fund the Indebtedness of the
| company, and TO extend and better its
| works, the mortgage accompanying was
| also executed that Loring actually owned
| certain OF the Stocks, $50 shares-but
transferred it to Eliab Parker, his conhden-
] tial clerk, to Mold in secret for him; that
!, from l25 to $50 of the 81. 900 bonds OF the
1 company have been issued, of which thirty
| three are held, on purchase In good taitn,
| by John Hull Browning, and The remain
| der are held by Loring and his associates,
and that all OF the bonds 80 held. save those
| in BrowniDgs possession, have been ac-
| ouired without any lawful consideration"
| save as after mentioned that Loring et al.
then conceived plan OF getting control of
| the stock TO defraud Crow and Others the
| assignment of stock, trust deed. etc, being
| a part of II, through the issuance of bonds
| OF the company to such persons AS LOring
| ct sl. might direct. through q promise in
bad faith TO furnish means 10 build the
| works; that q board of managers OF the
| trust, cousisting of Rogers, Phillips, Parker,
| Weston and himself, was made under the
| trust, of whom the three first named
| were under the control OF Loring ct al;
that putting his stock out of his
| possession. Loring then secured contracts
/ for furnishing labor and materials on the
| work. for about $ll0,O ,OO0. the real value OF
| which did not excscd about $4,000. and
| thereupon caused to be issued about $780,
| 600 of the Companys bonds TO him,
| though Loring has not performed his work,
| that LOring ct al. want all the remaining
bonds and threaten TO take possession ol
| them, which would ruin the Company;
| that the failure OF Loring ct al. 10 90 a.
| agreed, had lett the Company in bad conci-
| ton financially. and ons of it, creditors
| Browning. has begun suit IN attachment
| because of such condition; that the whole
trust 10 fraudulent, and ali proceedings IN
der it should oe set aside; that because o
all the foregoing he brings this suit TO Sc
cure bis own rights. and those Of th'
corporation Of which he is President. IL
asks, too, for an Injunction against tns
Trust Company. or Loring ct al. that tbeJ
be enjoined from further issuing ans OF th'
bonds n0w held, and that receiver be ap
pointed for the Company.
Hon. j. G. FitzGeraid IL the loos
attorney for Mr. Crow. aud he will be sblJ
assisted in the case by eminent Eastern
counsel.