New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-12
is IT MORE CROOKEDNESS ?
A NEW SUIT BROUGHT AGAINST JOHN HoEY:


STOCKS BELONGING TO THE ADAMS
EXPRESS COMPANY.
The filing Of papers In a new suit against John
Hoey by the Adams Express Company yesterday
marks new phase in the complications which
led ip 70 and have followed Mr.. Hoey's removal
from the presidency Of the company. The papers
are in the nature Of civil suit, though they
charge Mr.. Hoey with the wrongful conversion
Of 10000 shares Of the stock Of the Southern
Express Company, the market value OF which
would probably be 100000.
An injunction is prayed for against Ifoey to
prevent him from collecting the dividends
on this stock, and to restrain him
from transferring or In any way
embarrassing this property. The United States
Circuit Court at Trenton is asked to decree that
the 10000 shares Of Southern Express stock re-
ferred to, have been the property of the Adams
Express Company, since October s, 1887, when
they came into the possession of Mr. Hoey, and
that the settlement made between him and the
company In December. 1888, be set aside. 1t is
also asked that all the mortgages on the we'll
known property of Hollywood, including the
lease Of the Hollywood cottages to Frederick Z.
Hoey, the youngest son of the deposed president,
be declared void, on the grounds that they were
executed to defraud the company and that
Josephine Hoey the wife of John Hoey be de-
barred from all dover right in the mortgagcd
premises.
The rule is returnable Monday. Judge
Green, of the United States Circuit Court. yester-
day granted an order restraining Frederick G..
IIoey from parting with or doing any acts on the
lease which he holds on the Hollywood property
and restraining John Hoey from transferring any
of his property or collecting any dividends on the
shares of the Southern Express Company stock
which in litigation
From the papers in the case, it appears that in
1884 John Hoey, who was then vice-president
of the Adams Express Company, transferred TO
William b. Dinsmore, as president Of
the company Six mortgages various parts OF the
Hollywood property, aggregating Sl56,OOO with
| two other mortgages, one made by Hoey TO one
Philip Fitzpatrick and the other made by one
Charles Chamberlain to John Hoey. These mort
cages together with certain leasehold properties
| in this city, were given to the Adams Express
Company by Hoey to secure the payment of
loan of 81 91 800 and interest.
| After the death of Mr.. Dinsmore and the sue
cession of John Hoey to the presidency of the
| company, o demand was made on Mr.. Hoey for
| the payments of the loan secured by these mort
cages. A settlement was effected in December
Of the year, Mr.. Hoey offering to discharge
the Indebtedness by tranferring to the Adams En-
press Company an equivalent in the stocks of the
Southern Express Company. The full Indebtedness,
with interest amounted at that time to S240 90
The proposition was accepted The par value of the
| Southern Express stock then transferred was
81 and its market value was about S240,-
| 900.
! The transactions In connection with the purchase
| of three New-England express companies by the
Adams Company at valuation vastly in excess
of their cost price, which led to the removal Of
| John Hoey from the presidency and OF Clapp
Spooner from the vice presidency, have been de-
tailed at length in The Tribune. After the election
of Henry Sanford and Frederick Lovejoy to the
places thus made vacant, rigid examination
! into the company's affairs was begun, resulting
| in the suits that had been previously started in
| this city and in New-Jersey, against MIR. IlOey.
Now it is alleged that further discoveries have
| been made more startling than any on which the
previous actions have been based. The present
officers of the company assert. that the 1000
shares of Southern Express Companyis stock with
which Mr. IIoey discharged his Indebtedness to the
company, were already the property of the com
pany, and that 5000 shares in addition, of the
same stock, which was likewise the property of
the Adams Express Company, were obtained by
Mr.. IIocy and converted to his own use. In
other words, they charge that Mr. Hocy took
property of the Adams Express Company, the
par value of which was 81 ,0OO,0 and the
actual value about $500, 900, and used part of
it to repay the company for their loan to him, and
put the rest of it in his pocket
This stock il is alleged, obtained by Mr..
IIoey as president of the Adams Express Com
pany. from the Southern Express Company, as
part consideration for the making Of certain
traffic agreement between the two companies,
whereby the Southern Express Company would
be greatly benefited The agreement Of course, was
between the companies as suCn, Mr.. Hoey acting
only as the official representative of the company,
of which he was president. 1t would seem, how
ever that the transfer of the stock of the Southern
Express Company was made in the name of Mr.
IIoey himself.
In the papers filed yesterday, it is alleged that
at the time Mr.. Hoey received the 10000 sharca
of stock he was advised by the attorney
for the Southern Express Company, that
the stock was rghtfully due to the
Adams Express Company in consideration of the
traffic agreement which had been made. Mr.
Uoey's remarkable reply, it is charged, was, :"
will take the risk of that" The stock then
nut into his control. Two months after
ward he made the settlement with the
Adams Company, in which, if the charge
are accurate he discharged his Indebtedness to
the company by means of the company's own
property.
II appears also that IIoey gave TO Clapr
Spooner, who had been associated with him, in
the negotiations leading TO the purchase of the
lNew-England express companies. 200 shares OF
this Southern Express Company stock, without
any, or with only an inconsderable consideration
On the basis of these allegations the company
asserts that the 0,O00 shares, of the Southern
Express Company stock are the property of that
company and that the company is entitled, IN
| addition to the restoration of the stock, 10 he