New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-08-22


nrcspE RE ISSUED AGAINST EACH FOR
An AMOUNT pauAL no THE INJURY
occAsIoNED TO THEIR TRUST.
Inward F. c. Young. receiver Of the National
-.-ass. Company, has begun suit in the United
e..,ss Circuit Court against James NJ. Waterbury.
c.,sbP Marsh. Chauncey Marshall. Frank T. Wall,
,u.,s NJ Fulton and Willard P Whitlock. alleging
...s Of trust and misconduct upon the part Of
-. Attendants officers and directors OF the COM
Nv and asking that they he made to account for
s,,msnaeement OF its affairs The bill Of complaint
...,,ss that the National Cordage Company be
duly organized corporation under the laws
"a the state Of New-Jersey July 20. 1891 its OBJ
IS being 10 manufacture and sell cordage and
.rder Irvine and other similar commodities The
s.,sndants with Michael W. Wall. Daniel p. Whit
LII and John A. Tucker. who is now dead. became
he owners Of nearly all the capital stock OF the
.ornanv and caused themselves TO he elected on
s.rs and directors The capital stock of the COM
-. &C limited by the certificate of incorporation.
n.as g ioo 90 and the company was to commence
,,,,ss With 100000 The defendants were own
>, yar,ous mills for the manufacture Of cordage.
49,, and on or about August l. 1887. they caused
aAs for the term of ninety-nine years OF the sew
-, Lille % he executed 10 the National Cordage
c.,ar, suh-leases we're then given TO the re-
.c,,ve owners Of the mills II being provided that
should he USED SOe!y TOT inc Manufacture
- ,,.,na and cordage for the Cordase Company.
,,,o rooun, Of product and it's price to be fixed
nv the Cordage Company
The defendants SAYS the complaint. utterly failed
. form ,ber duties as officers and directors OF the
r.,us institutions combined under the title of the
>-..,o,sl C,ordage Company. and guilty OF
hoa,bes ~ trust For the purpose OF increasing the
Ito, s,o,k and In order to sell 1t in the market the
.,,i,,n, alleges the defendants caused the prepar-
10, NJ fictitious and fraudulent statements regard
ING the assets OF the company. committee composed
~ f5e defendants made report that the value of the
n-oH,s and surplus assets OF the company amounted
20 SIS 100 600 and that the capital stock should he IN
.5mnsint did ncrease the stock OF the company ny
ne addition OF $500 shares of common stock and
n shares Of preferred stock. and this was fraud
purchasers OF the stock As well as upon the
crsiiiors Of the National Cordage Company.
The bin Of complaint further alleges that the de-
fendants divided large sums of money among them
selves from the proceeds OF the sale OF STOCK tniS
unlawful division being in excess Of $4,000 600, and
being fraudulently alleged 70 be In payment Tor
properties and mills to be transferred TO the Ma
'jonal Cordage Company Mr.. Young also assert
that the defendants In 1890 and 1871 speculated WIN
the company's funds in hemp and other materials.
and lost about s. o00 oo1 and he charges Willard 7.
Whiilock and Elisha NJ. Fulton with having wrong
fully converted certain insurance moneys. the
own use The defendants, he says. caused divi-
derds 10 be paid when the receipts did not warrant
the payment. and by reason OF all these acts on
the part Of the defendants the entire capital and
National Cordage Company was rendered worthless.
the funds pledged 10 creditors disappeared. and the
corpora ton became insolvent."
Mr. Young asks that decree be issued against
injury occasoned 10 the trust administered by
them by reason Of the wrongful acts alleged.