New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-10-06
SERIOUS CH4RGES or FRAU
PAPERS DISAPPEAR MYSTERI0USLY.
ALBERT J. BECKLEY SAYS THAT WINFIELD :
CHAMBERLAIN HAS Sw1NDLED HIM

ALBERT J. BECKLEY SAYS THAT WINFIELD -
CHAMBERLAIN HAS sw1NDLED HIM
L. A. Beckley, Appearing for Albrt J. Becsiay
made motion before the General Term OF the supreme
Court. yesterday morning for an order OF reference
10 disclose who had taken number Of papers from tie
orc. of James VI. Varnum, who appoiDt-c a.
referee in the sult which A. j. Beckey has brought
against Winfield s. Chamberlain. Mr. Eeckloy declared
that these papers extremely important 10 inc
plaintiff and that they had evidently been stolen Dy
some one
Tbe snlt originally brought was for fraud and In
Mr. Bechleys complaint serious charges are nid"'
AGAINST Chamberlain and a number OF othe? men WHO
formed a corporation known the NewJe-sey Coal
saving COMPANY In his complaint Mr.. Beckley SAYS
that on April %, 1886, Chamberlain epresented 70
him that a company had been organized in NewJe'sey
for the manufacture and sale Of appliances FOR the
purpose OF economizing fuel chamberlain Sald tia'
he was a trustee and the general manager OF the
company The company, Chamberlain said, had bought
a license from the Ham Coal saving Company OF New
York which was an exclusive right 10 lTse in New
jersey the article patented by the New-lorh com
pany This right, Chamberlain declared, was OF great
value and tie company was sure 10 MAKE money
The capital stock OF the company was SlooOoo
divided into 500 shares of 500 each The trustees
Chamberlain told Beckey. had taken all the stock at
saO a share except 800 shares, which stu remained
in the treasury of the company and there had been
naid into the treasury $4,000 In cash. After paying
the Ham Coal Company for the license he said that
tbere was still in the treasury enough money to enable
the copany 10 % on successfully and do the business
for which it organized.
After telling him this story Chamberlain asked
RockIev 10 buy the remaining 500 shares. As An in
ducement TO do so Chamberlain toll him that he was
autlrized 10 offer them him at the same price whlch
the trustees Of the company had paid, that IS w
share believing these representations. BechIey says
that on April 81 1886, he purchased FRY shares' pay
ing 81, 900 to Chamberlain for them
Beokley saws that these representations by cram
herlaln were false and fraudulent and made by him
with intent 10 deceive and defraud the plaintIn
These representations did deceive him. TOO BecKley
saws and he lost the 81 900 which lie had invested
Then he declares that 10 was not true ua' inc
corporation had been formed, as alleged ana 1ndO
Chamberlain representa- lions that the trustees or any
other persons had paid $4,000 into the treasury N te
company we're false and untrue Chamber AN s'o'y
that thee WIS onouch moary in tn easury o co r on
the business was also false ard untrue BecAeS
The stock which was Issued 70 him, Bechey ueia'es'
was that which was owned By Cham0erIa'h hihseH
and did not come from the treasury OF the company as
Chamberlain had said. Beckley declares that II uie
Nov-Jerssv Coal saving Company ever had any local
existence It became largely by reason OF the nes9enoe
~ wrong ding Of the defendant. de:urct within a
short period after It's pretended formation; that no
election of officers trustees has ever been neiu '0
the preterded formation In 1856; that no report o!
Che company has ever been lled with the oncer' o.
The state a. required by law, and that II the coa-
ranv is still in any wise existing it Is enufey ~
solvent AID It's stock IS entirely worthless
The defendants answer 10 this long complaint Is
.xoeedprly short This IS the whole Of 1t: tine
defendant appearing in this action By Dili Chahdler
SEYMOUR his attorneys. and answering the complaint
mon information and belief denies each ana every
allegation therein contained. wherefore nc 'eiiai'
rd,nent that the complaint herein be dismissed with
gad hv D..
not BY the defendant the latter, Mr. Dill says Oe'ns
out Of the stale - . ,,,.-
This suit was begun on April -. 1891. Mr. BecSiey
| retaining W L. Flagg, as his attorney. Inc COM
plaint was served on April II, and on thc same Any
Mr. Flag signed stip-lation 20 nave TUE sun ue'4
mined by referee. NJ. Beckley de'lares p'siuIeS
that be never knew anything about this st'puiaHoD
| or consented TO it, NIL,
! The defendant served his answer on April 10. ms
stimulation provided that side should give bona
! for Judgment recovered against MN. M heSNt'
| rave 4 bond I'm the American surety NhAp"nS' "'.
| Chamberalu's snretes never qualied' TIC oru7r u
oserance was entered on April 10, and the t'ai was
! -, batore lanes ~ Varnum April %. on June
n the SHIT was dismissed by the referee and the
,tsrAants took Judgment for costs amounting TO S-oD
po,ttav had deposted 500 with the American surety
Coupany and lie says that all except ~" OF 'na sun
| has been eaten up by the Judgment ana ihemeu''
| -. o,, .Tr,e 10 Mr. Beckley became dissatisfied
! 80 and l. r. Becdey was substituted a. lis
! o,,ornevn On June Il the surety company was sued
| an the bond and two days afterward judgment was
| obtained Then Mr. Beckley got an order requiring
CnTnha~lsin 20 show cause why the siudgneot DIS
iinr the complaint which had been entered BY dc
| ssnIt esh0.ld no, be opened. The motion TO opeh
this defaus was denied by Judge Beach. q motion IN
Il iii In Judge Beach's hands for resetttment Oh
| this order In the meantime NJ. Beckley's attorney
had gone 20 The Office of the referee to get the papers
/ ,rhic6 rad been put In evidence 10 the suit Ineee
,,ried certain books OF the Hahn Coal saving Com
many They cOud not be found Ia Mr.. NsPnihs os'< e
ard Inc rcseree declared that he knew nOneng about
! 1hsm II was 70 Ind ont what had become OF tiese
Rocks that the motion for reference was male peote
lie ConsraI Term yesterday. These books, hr bucA
lv declares were In the custody OF tire supreme SOuIs
ma Come one has taken them surrepttOhsly. Heeh
iv declares that Chamberlain has an ONCE az NO 10
broadway and that within the last nye year he nae
| nroIpOted the following companies al OF whlch arc
now defunct: The New-Jersey Coal saving COMPANY I;
| he Tsedmont coal and Land Company, the Nsaioual
| tias Improvement Company, ana the Empire NAN
| ganese and Iron Company. . ,., ,,.,, -.
The most serious charge Of al which Beckhy MAKES
that The certificate Of Incorporation OF the NewJer
] sev company was altered after IL was hed lie ae-
rISres fiat the words Amount with winch 10 conf
ence business 81 600" not In the or gina Ger
tldrate ana were added after Il had been HE'D Win the
| secretary OF state OF NewJersey.
| Decision was reserved upon the motion for refer
A cree.