New-York tribune., 1896-01-18
T.. c. BENEDICTS CHARGES.
WILLIAM ROCKEFELLER AND OTHERS
ARE SUED.
AN ACCOUNTING DEMANDED FOR 1000 SHARES OF

A. ,ccor.vTIvG DEMANDED FOR 1000 SHARES OF
GAS STOCK MISREPRESENTATION ALLEGED.
Elias C.. benedict Of Greenwich. Conn. has
brought suit in the United States Circuit Court
AGAINST John G.. Moore. Grant II. Schley William
H. Duff Elverton r. Chapman. Henry II. Thinner
man. Henry II. Rogers. and william ii. cooper,
Of Nev-Yorll City: William Rockefeller, OF
,rarrvtown and the Guaranty Trust Company.
formerIv known as the New-York Guaranty and
Indemnity Company. for accounting for 2co)
shares Of Williamsburg Gas Light Company stoch'
which the complainant alleges were obtained from
him through Misrepresentation and were not used
for the purpose for which he delivered them.
The bill Of complaint alleges that the defendants
we're engaged in a scheme TO consolidate ana ne
con,e the owners Of the several gas companies OF
Brooklyn and that they desired to obtain con-
trolling interest in the Williamsburg Gas L'snt
Company 10 aid them In that purpose. lhey applied
TO the complainant to obtain control or MS shares'
agreeing to loan him Slij.235 81 thereon holding the
shares as collateral and when the consolidation was
effected TO give the complainant securities in the
consolidated company in lieu of those they asked
him TO deliver to them. The complainant deivered
the shares in December. 1894 and received the sum
agreed upon as a loan. The defendants obtained
control Of the Williamsburg company, but did not
carry out the scheme of consolidation
The plaintiff AYERS that. on the contrary they
formed a new organization. known as the Brooklyn
Union Gas Company, having nominal capitai OF
s15O0AO0 and made the Guaranty Trust Company
tho depostarv of bonds. etc, the trust company
being authorized TO deliver shares OF the stock ana
bonds of the new company to stockholders of the
old companies upon the surrender OF their certin-
Gates 10 the trust company In November. 1879, the
Old companies conveyed to the new company theiT
several franchises and properties.
At 4 meeting of the Williamsburg company, Mr..
Benedict alleges his 2CO0 shares were voted by the
defendant Cooper in approval of the agreement 10
sell the franchises and property OF the coinpIhy,
This use OF the shares, the plalntlh asserts, was
without his knowledge or consent, and was wrong
ful. A., 1,-,,,,.
burg comfany's property S.lJ1,0n par value
in bonds OF the new company, and It was PROVIDED
that 10000 Of this amount should De wllhheli LOT
the trust company for the payment or commissions
and Expenses incidental 10 the organization or tne
new company. The complainant says that he has
asks that the defendants be held as trustees Tor
his benefit of the 1000 shares ne dellVered anu
duired 10 furnish accounting, ana that the
plaintiff should be in no way chargeaDle iOr any
part of the expenses attendant upon Iorins h @ vle
new company. The plaintn charges that the sum
alleged to have been applied 10 expenses vas USED
against the interests of the Williamsburg company
and that II could not IN any way nave peeH useu e
legitlma tey. Mr. Benedict further asserts that he
has applied to the defendants for his stock ana
offered them the amount Of money loaned upon
IT, but that they refuse to render an accounting ana
declared that they had never received any shares
or the DEFENDANTS Messrs Moore. Schley. Duff
Chapman and Zimmerman are descrbed IN ,thc
complaint as members or the banking ana proher-
age firm OF Moore & Schley.
Mir benedict when applied to by reporter for
further information. declined to say anythlnS about
said that his firm had not been served with the
papers. and he was not aware that Mr. I'enedict
gas companies. President W. G. Oakman OF the
Guaranty Trust Company, said that MS company
had not received Air. Benedcts complaint and any
way il had nothing TO do win the matter, beyond
receiving the old and distributing the new STOCK.