The daily morning journal and courier., 1896-08-22
coRDAGE TRUST RECEIVER.
Has Sued James M. Waterbury and Others for Breach of Trust-What the Cam nh int A rcnrt.

| Has Sued James M. Waterbury and
 Others for Breach of Trust-What the
 Complaint Asserts
 | New York, Aug. 21-Edward F. c, | Young, a3 receiver of the National | Cordage company, has begun suit In the United States circut court against James M, Waterbury, Caleb P. Marsh, Chauncey Marshall, Frank T. Wall, Elisha M. Fulton and Willard F. Whit lock, alleging breach of trust and mis- conduct upon the rart of the defepd- ants as officers and directors of the company and esking that they be made to account for their management of its affairs.
 The bill of complaint recites that the defendants, with Michael l.. Wall, Dan iel B. Whitlock and John A, Tucker l (deceased), became the owners of near 1 ly all the capital stock of the company and caused themselves to be elected of- | flcers and directors thereof The cap ital stock of the company, as limited by the certificate of incorporation, was $2, 500 900 and the company was to com i mence business with $1, ,000, 900. The de- | fandants were owI CTS of various mills | for the manufacture of cordage, etc., and on or about August 1, 1887, they caused leases for the term of ninety nine years Of the several mills to be executed to the National Cordage com pany. Sub-leases were then given to | the respective owners of the mills, it l having been provided that the mills should be used solely for the manufac- ture of twine and corGage for the cor dage company. The amount of pro- duct and its price were to be fixed by the cordage company.
 The defendants, says the complaint, utterly failed to perform their duties as officers and directors of the various institutions combined under the title of the National Cordage company, and Were guilty of breaches of trust. Tor | the purpose Of increasing the capital stock, and in order to sell 1t in the mar ket, the complaint alleges, the defend | ants caused the preparation of ficti | tious and fraudulent statements re- garding the assets of the company. A | committee composed of the defendants made Q report that the value of the | profits and surplus assets of the com I
 pany amounted to s1S,000,000, and that the capital stock should be increased to $15,000,000. The defendants did in- | crease the stock of the company of S5,- 900 shares of common stock and 50,00C shares of preferred stock, and this was a fraud upon the purchasers of the stock as well as upon the creditors of the National Cordage company.
 The bill of complaint alleges that the defendants divided large sums of mon- ey among themselves from the proceeds of the sale of stock, the unlawful divide l being in excess of 900 and being fraudulently alleged to be in payment | for properties and mills to be tr-tns- ferred to the National Cordage com pany.
 Receiver Young also asserts that the l defendants in 1890 and 1891, speculated with the company's funds in hemp and other materials and lost about $5000, GOO, and he charges Willard P Whit lock and Elisha M. Fuller with having wrongfully converted certain insurance moneys, the property of the National | Cordage company, to their uses.