New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-05-23
SUIT FOR THREE MILLIONS
1T GROWS OUT OF THE CONSTELLATION
OF THE NEWARK GAS COMPANIES.

| CHARLES A. TURBUsH. OF PHILADELPHIA FILES
BILL AGAINST SECRETARY OF STATE KEEL
sEY AT TRENTON FOR ALLEGED VIOLA
TON OF SECRET AGREEMENT
Trenton, May 22 (SpeciaD.-A bill was filed in
the United States Circuit Court here TODAY
against Secretary of State Henry c. Kelsey, the
Citizens Gas Light Company. of Newark and the
Newark Gas Light Company, consolidated The
bill Is filed by Charles A. Turbuth, of Philadel-
phia, and the suit is brought 10 recover millions
or dollars Of the stock and bonds Of the Newark
Gas Company upon the strength Of an alleged
agreement entered into by Secretary Of State
Kelsey and the stockholders of the Newark Gas
Company before consolidation took place
The bill sets forth that in 1893 John p. Persch
of Philadelphia, and Henry C. Kelsey entered
into a sealed agreement in which Mr. Kelsey
agreed to sell to Persch his assignee the en-
tire capiat stock Of the Newark Gas Light Com
pany and the Citizens Gas Light Company for
the purpose of consolidation. The lice fixed in
the agreement for the stock of both companies
was SI.0OO,OOO. or this sum 81 900. 900 was 10
be paid in cash. Sl000.0O0 in cumulative pre-
ferred stock Of the consolidated company guar
anteeng per cent interest, and 81 100000 Of
the common stock Of the new company. The
agreement limited the issue of the preferred
stock to 81 100000 and the common stock TO
81, 100000 t.. S.. g..
Persch contends that under his agreement with
Mr.. Kelsey he was to have profit Of 81 100000
in the bonds Of the consolidated company. ST.
500.0 900 Of the preferred stock and 100000 in
the common stock This was to be given him.
he declares after he had paid 81 ,000.O 900 in cash
and performed other details toward guarantee
ing the completion Of the deal.
The bill is filed by .Turbach because Person
assigned all his rights to the plaintiff for a con-
sderation
After swearing that the stock Of the Newark
company is to-day worth it's par value and that
pany have refused to carry out their agreement.
although Persch has offered to perform his part
Of the contract the bill goes on to tell how
cheap gas can be made In Newark The manu-
facture of gas in Newark is peculiarly profitable.
the bills says, lowing to the price OF coal and
the favorable situation of the gas plant. Its
cost of manufacture is not only relatively cheap
as compared with the manufacture Of gas in
other cities. but the prices charged consumers
are much higher than In other cities"
The bill also alleges that the agreement be-
tween Mr. Kelsey and Persch bound the Sec
rotary of State ito secure the exclusive priVl-
lege, for the proposed consolidated company, or
supplying all the gas used In Newark for ten
years or more at not less than 81 10 per 900
cubic feet TO consumers and 81 % per 1000
feet for that supplied to the city"
1t said here tonight that S.ooOo or the
common stock of the consolidated Newark com
pany had been offered Persch TO settle the case
and that he refused the offer.
The bill closes with prayer that the plaintiff
be permitted to examine the new gas company
and Mr. Kelsey to the financial condition
of the concern.