Evening journal., 1896-12-08
ACCUSED OF PERJURY.
Serious Charges Made by Elihu
Root Against a Promoter.
MILLIONS AT STAKE ii A SUIT,

Moses Grow. the Organizer OF water Conn
panies, Charged with selling WORTHLESS.
Stock to Mrs. Hotohldss Alleged TO
Have Made False Pretenses
NEW York, Dec s.--Some Of the details
connected with the organization hy Moses
r.. Grow, lawyer. of numerous water
works companies came o. light Yesterday
IN the supreme court before Judge gruax
during the argument of q motion made IN
behalf of the New York and Mestchcster
Water company Cor an injunction 60 re-
strain the Central Trust company, Mrs
Maria II. Hotchkiss, widow OF the gun.
maker, and Joseph Richardson, from dis,
posing of almost S500000O of stock Of
different water works companies.
Mrs. Hotchkiss invested about 81 llGl,-
600 in the New York and Westchcstcr Wa
ter company, the Uppcr New York Water
company and the Now York City District
Water supply company, for which she
holds si,9O9, 200 Of stock Mr. Richardson
is the owner of $3.50, 600 Of stock in the
New York and Westchestcr company and
the Upper New York Water company, for
which he paid 81 1000
MIR Crow wus the organizer of each Of
these companies, which supply water to
towns and villages in and about Westches-
ter county II Is claimed that Mrs Hotch-
kiss and Mr.. Richardson entered into an
agreement hy which they were to advance
$500, GOO 70 finance the companies, and
that they were not to be entitled to the
bulk Of their holdings Of stock until this
agreement was complied with. Their stock
is in the hands cf the Central Trust com
pany The purpose OF the injunction now
sought for is TO prevent them from max
ing amy disposition OF their stock until
they carry ont this alleged agreement
Elihu Root, in opposition to the motion,
in behalf Of Mrs lIOtchkiss, said: "Ths
case presents an example of the most ex
traoidinary, reckless and false swearing
upon the part of the complainant that
have ever witnessed This man Crow got
hold OF Sl,l6l. 600 Of good money upon
questionable water works securities that
he assured her we're as good as government
bonds, and now lac has the impudence to
come into court and ask to restrain her
from disposing of her purchase upon the
vague statement of an imaginary contract
that she was 10 finance the company. /
shall demand that the public prosecutor
take action upon the false oaths that have
been maze in this complaint.
sent Her Glowing Letters.
Mr. Root presented many letters which
Mr.. Crow had written to Mrs. Hotchkiss,
who is 20 years old, giving her glowing
accounts Of the condition Of the cOmpa.
nies. recommending the stock as a safe
and good investment and declaring that
she could get nothing better She met Mr..
I Crow in 1890, ard at once he began to So
lcit her to invest in water stock. Her
/ first advance was s2a, GOO From time Ia
( time he induced her to sell various rail
road bonds in order to raise money 60 IN
vest In his water works companies When
Mrs Hotchkiss asked him on one occa-
sion why his stocks were not put on the
market he explained that they We're too
good, and wor3 cnly held for friends, as
they would ray 10 per cent
Mr. Bien declared that both Mrs.
Hotchkis- and Mr.. Richardson had voted
themselves stock beyond what they hat
paid for, the other directors voting viii
them ON their promise that they would
carry out tine arrangement TO advanc
money for the benefit Gf the companies
This agreement, lac said, was mad ol
July 2G 1885.
Mrs Hotchkiss denies that any sucl
agreement was made states that She mover
voted as q director of tha companies AND
says she obtained most of her stock beior,
the date Of the alleged agreement Mr
Richardson also denies the making Of any
such agreement and declares that he ne
ceived n portion OF his stock for service,
rendered as an expert ON the water works
Mr.. l3ien declared that he had NOR,
than hundred letters from Mrs. H0tch
kiss which would show that she had ~ ad,
an agreement to finance the companies
He was given q week within which 10 FRO
ducc additional ailidavit-. and .lu lg,
Iruax took the papers ANA reserves hil
decision.