New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-04-17
PART ii.
PAGES II TO IA.
COLONEL GROSVEN0R WINS.
DISMISSAL OF TEE ORDER OF ARREST IN
THE LEWIS SUIT.
JUSTICE BEACHs OPINION IS THAT THE DE-
PENDANT HELD THE STOCK or THE
MATRIX MANtFACTUEING COM
rANY ONLY IS TRUSTEE.

PANY ONLY As TRi STEE
ms.ce Beach. in the supreme Court, has va
Gated the order OF arres: granted some time ago
for the apprehension Of Colonel William NJ eros
ye7or in the suit brought against him by J. Y.
Lewis OF Boston, in which he claims that the de-
PENDANT sold him March l6 1881. shares IN the
Matrix Manufacturing Company TO the amount OF
SNe and that II was represented 20 him that
these were 20 be treasury shares whereas ne al
lcc,l that the defendant had sold his OWN stock.
and that the money had not gone into the treasury
Justice Beach dismissed the order on the grounds
ALLEGED by the defendants attorney and held that
the stock was in the name OF the p,antins vile,
and that Colonel Grosveror was acting only as
trustee The Court held further that there had been
no represent alton the part Of the defendant that
what he sold the plaintiff was treasury stock
The statements that follow were in substance
made by the attorney for the defendant. $ +.
Kreeland in his motion to dismiss the order.
The papers show that at the time the alleged sale
Of stock was made. March 16 1891. the company
had been incorporated. nor was IL !e'
determined that any such company Wou'' !"
formed. The original certificate OF incorporation
dated March o. 1891. placed In evidence so
hat at the time the alleged sale was made the
company had no existence, no stock, no trustee
and no treasury. From the records IL Is pioNeu
that the treasurer Head. who signed one OF the
afidavlts on which the arrest made, became
treasurer and one of the original incor2orators on
March 2S and knew all the facts Further II Is
nroved by the opinion of Mr.. Lewis's own at
torney Judge Hoadly, who examined the uueS
10 the property for Mr.. Lewis. that the u'es hao
heon obtained and were held by Colonel Grosvenor
as trustee for creditors and that Lewis was fuily
advised OF the fact by his own attorney before
making with other creditors an advance 10 the
trust fund Further, to the disposition or the
money so received. in answer 10 the charge 'ha'
il was taken and spent by Colonel GrosVehor LOT
his own purposes. the original checks from 'he
trust fund are produced. showing that 2Si5 81 was
no
ton OF the property for the benefit of creditors.
before the company ever received dollar into its
treasury One OF the checks in evidence Tor NSb
was given the very day the check OF Lewis was
received. 10 pay a bill for work at the shopS' J"
order TO release from lien the machines then pelS
.ors,ruc,ed for the benefit of creditors The
checks produced further show that over ASiS OF
the money thus disbursed by Colonel Grosvenor
WAS paid either 10 Head. who made one OF the
affdavits asserting that the money from MI Lewis
was used by Colonel GrosvenOr himself. or through
Head to others doing work for the concern IN
perfecting the machines. 1t appears from the pa
uers that these statements were not denied, and
mat Mr. Lewis was especially informed OF the
necessity of paying Immediately the claim for $3.50
TO the shops in order 10 secure machines for the
creditors.
$ f. Kneeland the attorney for Colonel Gros-
yenor regards the decision OF the Court Nacaung
the order OF arrest virtually deciding IN ad-
vance all the claims up in the suit OF Mr. Lewis
agains, Colonel GrosvenOr. but 1t remains 20 De
on the part of Mir Lewis may be set up against
him and what claims the company may nave
Il was stated by Colonel Grosyenor when the
order of arrest was issued that MI Lewis pro-
10 force him into refranng from suits against
Mr Lewis on notes UNPAID an Ana i9T ha nSTar
once suggested the idea OF any claim aganEt
pressed for settlement OF the amounts due from
him 10 the company