The sun., 1893-06-01
DEMANDS AN ACCOUNTING.
TROUBLE IN THE CONsOLIDl TED
ELECTRIC JIGHIIvG COMPANY.

Stock older Trendwcii Brinns Suit Against
Two OF the Omcers 90 Compel Them to
Account for o,s0O Shares or the Com
puny's sstoct-Hs Makes Serious Charges.
g. Lenox Treadwell OF 341 West Twenty
third street hos begun suit in the Superior
Court against Hugh II. Garden and Henry G.
Davia. to compel them to account for $500
shares OF ttock Of the Consolidated Electric
Light Company. Mr.. Treadwell. through his
lawyer. W. ". Niles. Jr., OF IL Wall street. says
that he hns discovered transactions recorded
in the minutes Of the Executive Committee OF
the Trustees OF this company about which he
knew nothing. and OF which some OF the m en-
bers OF the Executive Committee were igno-
rant. In fact. Mr. Trendwell thinks that in
some way these minutes have been juCeled to
the disadvantage OF the stockholders aud that
Mr.. Garden and Mr.. Davis should be compelled
to make an accounting. Hugh r. Garden Is
lawyer. aud at one time was President Of the
Southern Society. He makes u general denial
Of Mr.. Trcadwells charges.
The Consolidated Electric Light Company
has not proved gold mine to its stockhold-
ers 1t was organized In 1882 with u capital
stock OF 100000. Mr.. Treadwell owned fifty
shares OF this stock. Mr.. Garden was Vice.
President OF the company and Mr.. Davis was
Treasurer and general manager. Treadwell
says that in 1885 the trustees and officers
voted to issue 100000 worth OF bonds
to pay off the Indebtedness and mining ex-
penses In order to float this new issue Of
bonds. each stockholder was asked to give up
half OF his holding Of stock. Mr.. Treadwell
begins his complaint against Mr.. Garden
with this transaction. He says that Mr.. GAR
den engineered this now issue OF bonds. and
represented to the stockholders that
after the company had cleared up its
indebtedness it could make profitable
arrangement with the Thomson -Hous-
ton Company. Then an additional S125.-
OCO in bonds was issued for this same
purpose. Mr. Treadwell says that the COM
pany reduced It's capital stock to S970.00O. and
prevailed upon the stockholders to give up
on the basis OF the reduced capital.
There was an alleged meeting OF the Execu-
1888. snys Mr. Treadwsll. and he i'm I'M piea il - that
some things found their way into the minutes
of. the meeting that never occurred, The
i. Bnnes. the President; John, Rooney, Edwin
!. Thayer Henry {. Davis. and Hugh r. Gar;
Davis applied at this meeting for IN increase
Of salaries ~ and o. percsntsSge tag q the net earn
vosd At otser
the meeting show that the committee voted
and Davis IRE from sses 0t
and 1t was also voted to give each Of them not
loss than 10 per cent nor more than 10 per
cent. Of the net earnings Of the company. Mr:
earning anything. He did not know that such
action had been taken until he found 1t re-
corded in the minutes. Then he began an In
restigation.
Increase had, been discussed. aud that they
company became very badly involved in Sep
tnmher. 'S7. the trustees applied to George
Westinghouse, for relief Mr.. Treadwell al
leges that on the representations Of Mr.. Gar.
creased to S.. 100000. and the company agreed
to ray S9OO.uUO to the Westin ghouse Company
for plant in Pittsburgh. Mr. Treadwell says
thatthis plnnt was worth about 100000. When
Treadwell. learned that Mr.. Garden and Mr..
Davis were entitled to percentage Of the net
receipts they withdrew from the proposed
rangements. Another special meeting Of the
EXECUTIVE Committee and representatives OF
the Westinghouse Company was held in Fob
over tho accounts OF the company later he dis
covered that $50. 600 In stock WAS missing.
When he made IN inquiry about 1t he found In
the minutes OF the meeting OF February. 1888.
Garden and Mr.. Davis each 1850 shares Of
stock in lieu OF their lercentage.
Mr.. Tread we'll wants to find out by the aid OF
the Court whether such actien was taken and
whether 1t was legal He says that as the
don and Mr.. Davis had not drawn any per-
centa2e. therefore he does not see why tho
Executive Committee should present to them
this stock. Mr.. Gardens lawyers refused to
sented In court. Mr.. Garden has emphatically
denied them