New-York tribune., 1901-09-04
COL. ASTOR A DEFENDANT
he AND OTHERS CONNECTED WITH THE
ELECTRIC VEHICLE COMPANY SUED.

Trenton N J. Sept. a-John Jacob Astor. Mar
Tin Maloney of Philadelphia; George H. Day ana
other directors OF the Electric Vehicle Company.
which operates electric carriages In New-fo DIX
City are defendants in two suits instituted in the
Court Of Chancery by Richard Siegman. OF New
York. and other stockholders OF the concern.
II is alleged that the company has paid out about
$4,000 IN unearned dividends while IN reality the
directors have wasted or lost the entire s5.o0oooO
received IN cash for the capital stock from time
10 time, and have. in addition. been compelled TO
raise 81 10000 by mortgage TO prevent complete
suspension Of business. It is sought TO hold the
directors responsible for the alleged illegally paid
dividends and to compel an accounting of the
funds OF the company.
The Electric Vehicle Company was incorporated
September % 1897, with authorized capital stock
of slOOOOOOO. AT the stockholders meeting on Sep
ternber IT, 1900 the following directors were elect
ed: John Jacob Astor, Martin Maloney, Albert A
Pope Isaac L. Rice, George W. Day, Thomas
Regan. Daniel II. Shea, Herbert Lloyd. Robert
McA Lloyd Philip T. Dodge and Arthur Phillips
Mr. Astor resigned last December. and George
Chapman was elected in his place, it being claimed
by the complainant that Mr.. Chapman is an en-
ploye OF Mr.. Astor and represents his interests
Subsequently Mr.. Phillips and Robert McA LLOYD
resigned. and the number Of directors was in
creased by one by the election OF A L. Riker r. T.
Stevens and n. M Byllesby.
On October l. 1897, the vehicle company issued
2OO shares of preferred stock receiving S25o0OO In
cash and on the same day 600 more shares or pre-
ferred stock and the remainder Of its 5oVo shares
Of common stock were issued for which IL received
the entire capital stock of the Electric Carriage
and Wagon Company. together with plant ana
about twenty-five electric vehicles. Ihereupoh II
Is ayerred the vehicle company began to 90 busl-
ness in Nev-York, expending its entire cash caii-
tai Its business at that time consisting IN ahiiie
and renting many electric cabs
+, February 1899 according to the bill, the COM
many issued 1900 shares Of preferred stock reeeN
ing S75OO0O in cash. Two months later a oiNiueiu %
6 ner cent was declared on the lO.0S shaFes o1 %
ts-ra5 stock and a dividend Of per cent on 'Ao
Eoo,o sha-as of common stock making total OF
s,sa 600 Maid TO the stockholders. Ii is alieeeo ~
on April 26 1899, the capital stock OF tle I
Was increased by 10000 shares OF common 80 |
issued to storage battery oolfsrS and on MAY I6
SfIoyVtng the vehicle company Issued lSso s,- com,
OF ITS PredfIiep q go oS and 2OOO shares OF pre-
sferred stock 10 syndicate hea9e9o oy yo1 Iune sO
So Cor which II received S29oleo On 500 S9i Siyi
SSae seDternber g. 1899 and December 81, .pss 20 o
dends OF per cent We're eqsS s56 being paid the
,stockbolders on each date according 10 INC -'
ti9ns 9I r the = 5i 1900 per cent dividend was de
re5 On the preferred stock and SlVoVoo No. he
le declared that the dividends We're palu ~ p
Of net earnings and profits OF the con1paI5s' s3f
e9 eeia1s nrofts TO pay any dividends at all ,o,
n Is further alleged that the business SeS ~ Is al
,lorotad AT a great loss Early IN 1oS5, = -
legged the company purchased the pIaat ~ oI OF al
Halske 05 GncrTed losses Of SooOoo in run
I7i7r this and to sold ii at great oss, = IN IN
charged that while the company has recel1tI ~,
snfnsi cash S. 0OOOO0 this has been @ entirelE
iost and Tbaf 10 prevent a complete suspension OF
bnsiness ii was compelled last April 10 % DorroM TOW
81 500 O9O Issuing bonds aggregallh6 SA'o'''V'0 I'M
mortgaging all its property ,,.s ., ,r,a
The complainant says he has not appheu 10 r ete
directors for relief. believing u would pe a me-
waste of time on account OF their interest," IN ue-
clsrns the dividends and their control OF the COM
nany's stock He says that Of the total issue OF
SIS 500 900 OF stock S6,3oO0D0 is owned by the
storage battery company five OF whose directors
are directors OF the vehicle company. Two nliiioh
dollars stand IN the name Of Daniel n; Shea,
and are owned by the syndicate Of storage battery
stockholders represented by him. nearly S5oNVVo are
owned BY Martin Maloney; over Sl50O0 are owned
bv John Jacob Astor: over $4,000 are owned by
Isaac L. Rice. and 100000 are owned by
Albert A. Pope.
Nr Sieeman says that he was driven TO make
his inquiries concerning the company's affairs by
the great decline in the price of the stock which
was quoted so a share for preferred and % for
common at the time the bill drawn