New-York tribune., 1891-04-29
EXTENSIVE FRAUD CHARGED.
A SUIT FOR HALF A MILLION DOLLARS.
THE COUNSEL FOR THE ACCUSED MAN SAYS 1T
IsA CASE OF BLACKMA1L.


A large amount Of money ard a good deal oi
veraciy Mt stake in a suit which Joshua D. "iutu
has brought against James F. Oshsughnessy IN INC
Superior Court Mr. Green wants about SJOo'Joo ana
incidentally he charges Mr. Oshaughnessy with ialsely
representing the condition Of the Cotton OH Trust lh
1856 and 1887 On the other hand, Mr. OShausl"ea'J
charges MT. Green with trying to blachmal MN pS
bringing the snt in question. and declares 'hat MI
Green Is indebted TO him to the amount OF Tlo1o'o'
Mr.. Green has several alleged causes for complaint
lie says In the papers in the case that he secured
four leans from Mr. O'shaughnessy for which ne gave
notes and as collateral large blocks OF Cotton Ol
Trust stock
on september 90, 1885, he secured loan OF
100000. he gave his note for that amount ana
pledged ESQ shares of Cotton Oil Trust stock as
collateral. The market valne cf this stock at that
time. he avors, s55 so share making total OF
@01. .57j. The note was not due until March /,
1897 he declares. and yet Mr. O'Shaughnessy sold
the stock on September H. 1856, without giving
notice Of the sale to Green. There arc three Other
transactions OF similar nature, and Mr.. Green de-
mands judgment for s13O,561 SO on account of the
note business.
In the second cause Of action, in which Mr. Green de-
mands judgment for S120.oOO still more serious
charges arc made. lie says that in the latter part
Of 1886, and in the early part OF 1857 Mr.
OShaughnessy J. V. Lewis and John l.. Macau!ey en-
tered into conspiracy wreck the Cotton oil Trust
N'''-'
the three men named issued false statements Of the
earnings Of the Trust with the intent to mislcad the
plaintiff ard others. The trustees of IN" Trust Mr.
Green dcctes reported among other things that the
Trust had cash surplus Of "a 100000 in its treasury
from earnings. These representations were made, he
declares. 20 induce purchases Of the stock, and to
enable the defendants and others to sell the stock at
high price. The trustees also represented accord
ing 10 Mr.. Green's story. that dividend OF at least
4 per cent would be paid for all time on the stock.
The truth of the matter was Mr. Green declares that
there only S75OoOO in the treasury, no part OF
which came from the earnings OF the Trust, and that
one dividend OF per cent all that was ever paid
and this not from the earnings After the trustees had
sold all the stock at high prices and had gone short
on the market for considerable amount more Mr..
Green AYERS that the trustees circulated reports
dcrogatory the Trust and caused the stock TO fall
30 a low figure. Then they bought it all in at the
low price after having sold il for the high rate. Mr.
Green declares that in consequence OF the representa-
tions about the soundness Of the company he was
induced to buy large amount Of the stock and he put
up $685. 600 in cash and deposited stock worth 900
with O'shauglmcssy to pay for his purchases.
O'Shaughnessy gave him option to cancel the pur-
chase lie AYERS. but when the time came he refused
to keep that part Of the agreement.
A good many more allegations of bad faith and con
spracy are made in this part of the complaint aud then
proceeds TO relate the history Of the formar
ton Of the Trust and the alleged conspiracy to wreck
1t. In consequence of this alleged conspiracy the
stock decreased in value TO such an extent that lie
was obliged TO sacrifice 1881 shares and thereby os'
S15OoOO for which he demands judgment.
4 Tribune reporter saw eN-Judge Nelson j. NdteF-
bury who is MIR. O'shaughnessy's counsel, at his
home, No. 13 West Fify-sixth-st, last night MI.
Waterbury declared that IL blackmailng schehlc
on the part Of Green. He said that Mr. OShaugnnessy
had carried stock for Mr. Green for long time ana
lad tried i'm every way to assist him. The allegations
that the stock put up collateral for the notes was SOFA
fore the notes were due he Characterized utterly false
owed his client SlOO,OOO, now, he
and he would recover Judgment for that amount III
this suit Mr. O'Shaughnessy, he said wonld be willing
10 give 90 900 to Mr. Green IL the latter would furnsh
q bond to pay the amount Of the judgment which
would be recovered in this suit