The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-10-14
President Hoey, of the Adams Express
Company, Dismissed from His Office.
vice.President Clapp Spooner Allowed to Re
sign. and Henry Sanford and Frederick
Lovejoy Elected to Their Places
Both Accused of Being Partners in q
Syndicate That Robbed the Company.
Purchased the Boston Despatch and the Kins-
ley Express for $50, 900 and Sold Them
10 the Adams for $S50.000

NEW YORK, Oct 12-The dismissal OF
President John Hoey, of the Adams Ex-
press Company. came as q complete surprise
TO the business community. Many men
prominent in business affairs did not hear
of the dismissal until to-day. although the
decisive action was taken by the board Of
directors Of the company at q meeting held
late yesterday afternoon. Vice-president
Clapp Spooner. at the same meeting, hand
cd in his resignation. Both men are charged
with malfeasance in Office. The alleged
malfeasance In Office for which President
Hoey was removed and Vice-president
Spooner allowed to resign was the sale, by
the two officers and others. of the Boston
Despatch Express Company and the Kinsley
Express Company to the Adams company
for SS50,0OO.
AT meeting yesterday the members OF
the board present besides President Hoey
were Vice-president Spooner. of Connect
cut; Henry Sanford. Of Connecticut; Waldo
Adams. of Boston; John Q. A. Herring. OF
Philadelphia; w. b. Dinsmore, of New
York; l.. c. Weir, of Cincinnati; John Dam
sci, of ST. Louis. and Clarence A. Seward.
of New York. general counsel for the Ad-
ans Express Company. It was during Mr..
Hoey's absence in Europe that an investi-
CATION was made. which resulted in the
action taken yesterday. The president Of
the company returned from his trip abroad
on Wednesday last. and was notified the
day following that q special meeting of the
board of directors would be held, and his
presence was particularly requested.
KNEW WHAT WAS COMING.
It's presumed that he knew what was
coming. for he consulted one of his close
personal friends in the board and, 1t 10
said. sought to gain promise OF support.
Whether this promise was given or not is
not known. At all events. there was not @
single dissenting voice when tho question
came TO a vote. The meeting was neces-
to feel free to say what they pleased. From
all accounts they did not mince mattera
Mr.. Sanford led the assault by reciting the
allegations made In the Sherburne suit, aud
Mr. Seward asked some pointed questions
1t required @ very few minutes of that
sort of thing to satisfy Mr. Hoey. He
arose from his chair with flushed face.
saying that he did not propose &C. be.sub-
jected to impertineht questions about some
thing that the courts had been called upon
to decide. He then left the room. He had
scarcely closed the door when q resolution
that had previously been prepared was in
troduced and adopted. It was to the effect
that the office of president of the Adams
Express Company be declared vacant.
and that the position OF trustee, held by
Mr.. John Hoey, De also declared vacant.
Vice-president spooner had beer shifting
uneasily In his chair during these ominous
proceedings. Was there anything in store
for himf He did not wait 10 learn. The
expulsion of his chief rendered it impossi-
BILE for him to remain in Office. as the strict
n.
piled to him. Rising in his seat, Mr..
Spooner asked the board 10 accept his
resignation. The board did. quite formally
and gracefully, it is said, but with alacrity.
HENRY sANDFoRD CHOSEN PRESIDENT.
A meeting of the board of directors of the
Adams Express Company was held here to-
day. Henry Sandford was elected presi-
dent. and Frederick Lovejoy yice-presi-
dent. to succeed Messrs. Hoey and Spooner.
The position of trustee, vacated by Mr..
Spooner. was left vacant until the next
meeting of the board. All of the members
of the board were present. with the ex-
ception of Mr.. Spooner. Mr.. Hoey was
present. He eluded the reporters. Clar-
ence A. seward presided. Mr.. Sandford
arose and asked Mr. Hoey to resign hIs DO
sition on the board of directors. Mr.. Hoey
fatty refused. He said the directors could
put him out of the presidency, but it was
beyond their power to dsplace him as
director. He is reported TO have made
quite q speech. No objection was made 90
his sitting as q member, and casting his
vote. Some of the board are of the oDin-
ion that they have the power TO eject him.
This matter will be referred to the counsel
for tho board for his opinion.
Mr. Sanford was nominated for president
by w. Il. Dinsmore, and was elected by a
majority of votes. l.. L. Weir received
votes. Frederick Lovejoy was unani-
Il
has been connected with the company for
the past forty-fve years, ard was at one
time its general superintendent He is an
old resident OF Bridgeport. Conn. Lovejoy
was for O long time superintendent of tho
Pennsylvania division of the Adams Ex-
press Company. In 1886 he resigned TO ac-
cept the presidency of the Denver a. Rio
Grande railroad. He resigned this position
two years ago and retired from business.
President Sandf0rd at once assumed
charge and appointed Messrs. Lovejoy and
Dinsmore as q committee to inquire into
the financial status OF the company. They
will report to the BOARD at its next meeting
on the 2Sth. The meeting was protraoted
one, yet the directors claim that the eiec-
tion Of officers was the only business trans
acted. Mr.. Dinsmore said: The matter Of
Mr.. Hoey's connection with the company
was not mentioned beyond his being asked
to resign his Office as director. Nothing was
said ebOut bringing suit against him, and
in fact nothing was done beyond the cleo
tl0n or ofncers.
The directory as il now stands is az fol-
lows: Henry Sandford. Frederic Love-
10y, l.. T.. Weir. w. II. Dinsmore, Clarence
A. Seward, VIM. III. Damsel, j. q. A. Her
ring and John Hoey. The trustees are
Sandford and Weir. The third trusteeshIp
remains TO be filled.
THE CHARGES AGAINST MR. H0EY.
The fate which overlook Mr.. Hoey was
foreshadowed last spring in suit brought
by Henry c. Sherburn against him. Clapp
Spooner and Edward A. Taft were code
PENDANTS. The action was brought TO re-
cover sum Of money spproximating $780,
O00 Mr. Hoey then admitted under oat,,
that he had been party TO q transaction
by which syndicate OF three men sold
property which had cost them about $780,
600 TO VIM. Is. Dinsmore, then the president
of the Adams company. For this SlS0.00C
worth they received from Dinsmore, and
Dinsmore afterward received from the
Adams Express Company. the sum of $780,
O00 For this property Mr.. Hoey had
not paid cent but he accepted
One-quarter of the profit they made. which
profit amounted TO 5000 His quarter
was between $4,000 and $4,000. The
suit was appealed. The plaintiff and de-
PENDANTS were interested in the New York
and Boston Dispatch Company. Ii was the
suit which partly led 10 the Investigation
of Mr.. Hoey's official act
John Hoey began a messenger and par
Gel carrier. and Was, up 10 yesterday, not
only the leading man in the express busi-