New-York tribune., 1901-09-06
NEW JERSEY NEWS.
FURTHER FRAUD CHARGED.
A NEW SUIT ENTERED AGAINST DIREC-
TORS OF VEHICLE AND BATTERY
COMPANIES, IN WHICH CON
SPIRACY is ALLEGED

Trenton. Sept. (SpeciaD.-Richard Siegman, of
New-Tork, who few days ago began suit in the
Court OF Chancery against the directors of the
Electric Vehicle Company, to-day instituted sim
liar proceedings against the directors of the Elec-
trio Storage Battery Company. Mr.. Siegman al
leges that the directors of the two companies en-
tered into conspiracy to divert from the vehicle
company into the treasury of the battery company
certain Of the assets and stock of the vehicle
pany. He charges that this done to enrich the
respective directors at the expense of the stock
holders of the vehicle company.
MT Siegman in his bill filed to-day gives all the
details of the various transactions between the
two companies as he says he discovered them. He
says that the battery company which was incor-
porated In 1888, had on January l. 1899 an author
lied capital stock of s3O00OO0 of which sl 900
was issued and outstanding. On March H 1900 the
Following board of directors was elected by the
battery company: Isaac l.. Rice, George H Day.
Thomas J, Regan, Daniel S. Shea Herbert Lloyd
William W. Gibbs Rudolph Ellis Grant b schley
George Phler. Joseph F. Sinnott Thomas Dolan
Peter A. b. Widener, William l.. EIkins Philip T
Dodge and George A. Huhn. OF these, Rice Day
Regan Shea and Lloyd formed majority of the
board OF directors Of the vehicle company Mr.
Rice was president of the battery company until
August. 1899. when he was succeeded by Mr. Day
Mr. Siegman says that In January 1899. the busi-
ness of the vehicle company began 10 attract great
interest among investors. the stock apprecisting
rapidly in value until in March 1899 the common
stock was selling freely at S135 a share and the
preferred at sl30
About this time, he saws the directors Of the
two companies entered into the ALLEGED conspiracy
and procured the incorporation OF the Columbia
Actonoblle Company. capitalized at 50 O0OOAO The
battery company assigned the automobile COM
under its patents and paid its treas
uIS S-S!0o cash, for which the battery company
I.ceiNed A,UpctD OF the automobile cGmpany's ;
Slorh- Inc automobile company at the same time
purchased from the Pope Manufacturing Company
Oh Hartford, Conn. its plant for 81 300 OF its
capital stock and $25OOO0 in cash Shortly after
ward II Is aLeSed, the automobile company which
was controlled by the directors of the battery com
New-Haven Carriage Company for a small sum
"nich Mr.. SieSman believes to have been $5OOO0
ne next step in the alleged conspiracy was the
increasing OF the capital stock Of the vehicle com
pany from H2 600 TO $4,000 O0 and the issuing Of
Z4V9 shares Of preferred and 24O00 shares OF com
mon STOCK 10 the battery company, the vehicle
company, IN pretended payment, receiving one
nait or the stock issued and outstanding Of the
IoluInpia company, which then owned by the
battery company. and which Is asserted O have
oeen worth not more than 10000. BY this trans
$+5uoOO. 10 the corresponding gain OF the battery
company. In December 1907. the capital stock OF
the Vehicle company was increased $40 COO bv
the addition OF 10000 shares OF preferred and
Tor the purchase of the stock and plant Of the
fSlker NehicIc Company. The bill charges spe-
cincally fraud on the part OF the individual direc-
tors. and says that John Jacob Astor. now repre-
sented said board Of directors OF said vehicle
company by his employe, George Chapman. was
elected on July q. 1899. and participated and voted
CURED since his said election In the suits re-
Gently begun against the vehicle company IL was
sought 10 hold its directors responsible both for
wrecking the company and for illegally declaring
atng at loss from the start and had never earned
any profits.