The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-03-22
QUARRY TRUST Fight.
Stockholders Object to What
They Call a Freeze
out.

The officers of the New Jersey Quarry
Trust were before Vice Chancellor Emery
this morning in Chancery. Chambers
when an injunction was asked for to re-
strict the New York Trap Rock Company
from dissolving and turning over its as
sets to Hudson River Trap Rock Com
pany, {. newly organized corporation COM
posed of men controlling the quarries in
New Jersey.
The bill read by Judge J. D. Bedle, with
whom was Mr.. Flavel MCGEE, sets out
that the New York Trap Rock Company
is on the eve of winding up its business
and this will do irreparable injury to
Charles A.. Brown of Elizabeth, head of
the firm of Brown & Fleming, New York
city, the New York Stone Crushing Com
pany and others, whom the new company,
they allege, is. trying to freeze out.
The New York Trap Rock Company was
composed of ]. A. Borlker. G.. L. Record,
w. 7. Force J. e. Barber and others,
who started out with a capital stock OF
$l00,0 600 in 800 par value. shares and $4,000
of actual money to control the trap rock
industry in New Jersey and New York.
They Included also Brown & Fleming,
Bouker Contracting Company of Gutten-
berg and the New York Steam Crushing
Company of Snake Hill, all of whom We're
to comprise the trust. The
leased the stone quarry at Fort Lee from
Carpenter & Brothers for $4,000 and
started out to execute contracts and con-
troll the market in trap rock.
The compliments said that all the par
ties mentioned executed exclusive agency
contracts with the company and sub
ccv;ho7 fa,. itc c+ao11 ord +1a Do+ae 81
secure Carpenter & Brothers for the Fort
Lee quarry.
There were no such notes Issued ex-
claimed Mr.. Record, counsel for the de-
PENDANT company.
Continuing, Judge Bedle said that
Charles "A. Brown, of the firm of Brown
& Fleming, paid notes amounting to
$500 when they matured, in payment of
their stock of % shares and their part of
the purchase money Of s10O, 900; but the
company had persistently refused to issue
to them their shares of stock, although
they recognized Mr.. Brown and his firm
by sending them notices of meetings.
Concerning these meetings the complain
ants say no report of the company's at
fa1rs had ever been presented by Jacob
q Sonkllng, Treasurer. or President G.
+. Stainer, in spite of requests to kno
how the company stood.
Afew days 60. complainant says they
received a notice that the company would
time found out that the new company
the. Hudson River Trap Rock Company,
mad been organized and included every
one Of the old company excepting the
complainant.
The intention being" said Judge Bedle,
10 GUST the complainants, freeze them out
company to the new. 1t is a fraudulent
move, We allege that Brown & Flem-
ing and MI. stainer, of the New York
third Of the stock of the old company
which by the statute cannot be dissolved
n 81 p by a two-thirds majority of the
Counsellor George L.. Record read the
company's answer, which at the outset
admitted the formation of the New York
Iraproek Company and its purposes as
q trust; but said hat Brown & Fleming
had violated their exclusive agency con-
tract by undertaking the company.
Brown & Fleming: he said, were instruct
ed to bid for a New York City contract
at 1928 per yard. The company found
hat Brown & Fleming secured the con-
tract for. $2.0T14 and refused to turn over
the contract. as their contract demanded,
to the New York Traprock Company. AS
for the alleged payment of notes to the
company, Mr.. Record said. that Brown
& Fleming owed the company $500 on
nquidated damages for violating the
| agency contract. Brown & Fleming, he
said, did not own the stock they claimed,
! and on every occasion had been an active
competitor with the company.
ITO such an extent" said Mr.. Record,
in closing, that the firms woul not re-
new the agency contract because. Brown
& Fleming secretly underbid and because
of their bad faith the directors of the
New York Traprock Company thought
it best to dissolve the company. There
was no business"
A number of affidavits and counter
aflidavits were read, and the Vice Cham
| cellnr said he would give a. decision later,