New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-01-25
MAKING A GRAVER CHARGE.
MAYOR CHAPLIN DECLARED. TO BE AN AC-
COMPLIcE IN THE WATER STEAL
MR. zIEGLER IN HIS AMENDED ANSWER A.
sERTs THAT THE THREE BROOKLYN
OFFICIALS ACTED In coLLUsIoN

Mn AEGLER IN HIS AMENDED ANSWER A.
sERTs THAT THE THREE BROOKLYN
OFFICIALS ACTED In coLLUsIoN
WITH STAPLES.
The promised amended complaint in the suft
brought in Brooklyn by William Ziegler against
Mayor Alfred G. Chaplin, Controller Theodore f.
jackson and I. b. Rutan, who was CITY Auditor
last year, and the Long Island Water Supply Com
pany, to annul the contract made by the city
oficials WITH the Water Supply Company TO pur-
chase the property and franchises of the company
for $l,2j0,o0o was served late yesterday after.
noon upon Corporation Counsel jerks, attorney
for the city officials
The charge is distinctly made in IL that the
Mayor and his associates acted in collusion with
the officers of the water company, and whom they
were informed of the facts in the matter hastened
to close the bargain: that the bonds and stock OF
the company were far below par, as Staples, whs
represented the company, well knew when he sold
them TO the city at 800, and the company, in
stead of owning fifty miles of pipe, has only
twenty miles.
The original complaint set forth that on OF
about December %, 1890, the defendant officials
acting in their official capacities, entered into
what they declare to be an agreement with the
company, represented by Mr.. Staples agreeing u
purchase the property and franchises of the COM
pany, the purchaser agreeing to assume the pay.
ment of the bonded Indebtedness Of the company
which is 100000, and to pay $75O,OOO for the
stock, the par value of which is $3.50, 900, there
being $500 shares of 81 90 each. The complaint
alleged that the city officials were about TO exc.
cute and issue bonds OF the city in the form OF
water bonds, and use them or the proceeds OF
their sale pay the consideration of 900, and
to issue other bonds to the amount of 100000
and exchange them for the mortgage bonds Of the
company, and to complete the purchase, although
they had no power or authority to
do so, as the plaintiff believed Also.
that in making the contract the de
PENDANTS took into account, as enhancing the
value the fact that the company had an ex-
elusive franchise in the Twenty sixth Ward, and
that Staples represented that In the last year
the receipts were $685. and the net earnings
of the company enabled it to pay per cent divi.
dend semiannually, and that such representation
was false.
The plaintiff said that the stock, property and
franchise of the company were not worth more
than S25O,OOO, and that Staples, who processes
to own or control 2,400 shares, pur'
chased the bulk of these about fifteen months
ago at $40 a share or $4,000 for the 2,loo
shares. but that he held the shares for several
others he represented, and that the stock had NOS
earned a dividend. Although Staples Is stock
broker and knew the value of the stock, he repre-
sented il to be worth $500 share. IL was also
set forth that to pay the amount mentioned In
the contract of purchase would be grlevous waists
Of the public money and it would he an hleeaa
act on the part of the defendant ofhclals
The amended complaint embraces these add''
| tional points:
First-It is alleged that the defendant officials
acted collusiyely with the agents OF the Long
Island Water Supply Company in contracting 10
| make the purchase, and that when the pialh'i"
| wrote letter to them. which has not yet peeh
made public. asking them to pause and give him
| an opportunity TO be heard. they made no reply
to il. but hurried up the signing of the contra't
and have not answered tie letter TO this day.
Second-It is alleged that the bonds OF tho
water coupany we're selling for so cents before
,he purchase, and if the bonds sold at this
nrce the stock certainly was not worth
par. and that Staples is stock.
broker and we'll knew the value and had sold ana
transferred the stock for year before the negotia-
tions were begun for less than par-the bonds at
so and the stocks at 40 and 50-and had also
mt them on his QUO. alton lists at these values.
Third that Staples and Trecartin, his son-ln-
law the president of the Water Supply Company
represented that il had fifty miles of pipe and the
plant was able at slightly increased expense TO
supply the entire Twcnty-sXth Ward with water
now and hereafter, whereas in fact, the company
has only twenty miles of pipe, ana the pipe covers
only oae-twelfth of :he ward, and that to supply
all the inhabitants of the ward with water II
would cost a much greater sum than that already
expended upon the plant of the company.
Corporation Counsel !enks would not say how
long he would take 70 answer the amended COM
plaint, but he took tho full twenty DAYS
allowed by law before putting m, ms
answer to the original complaint w: D;
Gaynor, counsel for Mr.. Zleger, refused
to make any statement in regard to the matter
when seen last evening. The Injunction con-
tinued by Judge Bartlett. who said that the city
officials made no adequate answer % the aidavits
upon which they were temporarily enJolned. IS
i'm force but an appeal from the decision OF
.Jndce BARTLETT will be heard by the General Term
on the second Monday in February The triai
of the original sSit is upon the calendar tor the
first Monday in FEBRUARY, but the amendment oi
the complaint will probably throw 1t over uhtii
later in the month"; -, ,,o.
The charge of cOllusion on the part OF Mayo,
Chapin with the watOr company, IN whlch se'eru
Democratic leaders are interested, Is regarded as
a grave accusati II against the integrity oil the
Nayor in his puUlic capacity, and much more
eorinus char than the waste Of the pubic lihus
in tho nroposed purchase which was made IN
thc oristnaf complaint. The Mayor was out oi
the city last evening