New-York tribune., 1900-03-19
WILL SUE TIyTTRE e WARDHELL.
JOSEPH R. MEGRUE CHARGES MIsREPREsESrrA.
TON ABOUT FLOUR TRUST BoNDs-Ma
MINTYRE's DENIAL


Joseph R Megrue. in action 70 be brought IN
tns supreme Court. attacks Thomas A Mcintyre
Samuel Taylor, jr.. James J. Marshall Edward L
Adams. Henry B. Dey and Henry l. WardvelI
composing the firm OF Mcintyre & WardxeII and
the United States Flour Milling Company
The complaint. drawn by John " Gardner OF
the Potter Building. alleges that on May L. 1899
the defendants acting in cooperation with eacs,
other. represented that they owned sixty first
mortgage bonds OF the par value OF 81 600 issued
by the United States Flour Milling Company
secured by first mortgage for the sum OF 81 500
0co upon the property OF the company in different
parts OF the United States.
II was represented 70 the plaintiT. the complaint
alleges that the bonds good and worth more
than par, and that the property upon which the
bonds were issued worth at least S8500oo
IL was also said that the defendants told the
plaintiff that the Flour Milling Company was
doing a profitable business and was earning enough
70 pay the interest the bonds and a dividend
on the preferred and common stock, and that the
bonds would be listed the Stock exchanges.
These statements are all alleged 10 be untrue and
TO have been made with view 20 induce Megrus
to purchase the bonds for $1,000 and pay ~ DO
down Megrue did pay the $4,000. and then learned.
he says, that the property upon which the bonds
several millions less that the bonds not listed
and that the Flour Milling Company had not paid
dividends
Megrue wants his contract cancelled. hts $1,000
back. and the costs OF the action
The answers. which put in by Parsons. Shep-
ard & ogden. except that Of Henry I. Wartwel
consist mostly OF denials. Mr. Wardweu denies
that Is now the time OF the trans
actions complained of general partner OF the firm,
OF Mcintyre & Wardwel He says that he Is a
special partner. The other defendants deny Jnar
they attempted 70 mislead Megrue-
When the Flour Trust. as II Is called. the
United States Flour Milling Company, was formed
in May. 1899. capitalized s25G000o9 In its
circular asking for subscriptions bonds. II said
that an expert had valued its real estate without
the good will az S1O5o00to Mr.. Gardner says that
he had the property appraised in December last,
and he gives it's value little more than S-,O..-
600 The company is now being reOrEanized-
Thomas A Mcintyre said last night thai the firm
of Mcintyre & Wardwen had represented the
property being worth SO 009 but had merely
included in It's circular statement that Western
milling expert had appraised the property at that
figure. He also said that his hrTn had never recx-
no promises had been made that the stock would
be listed.
The company undercap piralized. and there
is undergoing the process OF reorgaulzation-
Those charges OF fraud absurd he declared
Mr. Gardner confirmed the foregoing account OF
what his complaint contains He said ne mad noped
20 settle the by compromise, and that the
papers in the case had not yet been lied IN court
Henry L. Wardwell said last night that ne was a
special partner and therefore not liable, ana taal
he knew hardly anything about the case