The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-06-01
4 SUIT AGAINST PROMOTERS.
Latest Phase of the Maryland Brew
IN Inr,,nrnx. Cn.n

ing company case
BALTIMORE. June I-Bentou C. Boil
leau and others. in an amended petition
filed yesterday in Circuit Court No. 2, in
the Maryland Brewing Company case,
ask the court to authorize and direct the
receivers Of the brewing company to in
sJitute proceedings against the promoters
OF the COMPANY
Legal proceedings are asked against
Richard 2. Sperry and charles " Jones
jr-, trading as Sperry. Jones & Co; the
Mercantile Trust and Deposit Company
and the Citizens Trust and Deposit Com
pauy, all OF Baltimore, and such others
as may be found to be involved 20 COL
Iect the amount due and unpaid upon the
sromOterS' stock, common and preferred,
issued directly to them by the Maryland
Brewing Company, to have delivered up
and Cancelled or paid for the bonds Of the
brewing company unIawfuIly issued and
delivered to them and to recover from
them such an amount of the proceeds of
the bonds of the Maryland Brewing Com
pany sold by them which should have
been applied for the benefit of the brew
ing Company, but which was misappTo-
pTiated to their own use"
The court is also asked to direct the re-
ceiveTs, through special counsel, Ito en-
quire into the matters referred to in the
circulars issued by Sperry, Jones G Co,
and William II Whitridge, President Of
the Maryland Brewing Company, on file
in these proceedings, and to report the re-
suit OF such enquiry to the court that the
court may direct such action to be taken
with reference thereto as it may deem
proper"
The amended petition was fled by VIII
Hams, Thomas < Williams, attorneys, aft
Ct leave had been granted by Judge Den
mis-
The petition states that the petitioners
hold $500 Of the frst-mortsase bonds Of
the brewing company and $4,000 Of its
preferred stock. 1t recites the agreement
under which the brewing company was
formed, and alleges that there was an lie
gal and excessive issue of s., 6S0,005 in
bonds. $3.50 O40 in common stock, and $780,,
Gt9 in preferred stock, none of which has
been paid for or accounted for The REG
OTds OF the brewing company show, the pc
tition states that the cOmpany's board
OF directors recognized the contracts and
assumed the obligations Of Sperry, Jones
& Co, the promoters of the company. Va
riOus other persons, It is also alleged,
co-0perated with Sperry, Jones & Co in
terms has not bee disclosed, owing to the
refusal Of EpeTTy. Jones q Co. the Mer-
camille Trust and Deposit Company, ard
the Citizens Trust and Deposit Company
to produce the papers or testify in con-
nectiOn herewith
Besides the alleged overissue Of securi-
ties mentioned, il is claimed in the petition
that there is a deficit Of over $4,000 in
the cash capital of the brewing company
improperly applied to the payment of
floating debts and other purposes to be
provided out Of the sale of bonds, which II
IS the duty Of the receivers TO recover
from the parties selling the bonds.
The petition charges that the Mercantile
Trust and Deposit Company, the Citizens
Trust and Deposit Company, and Sperry,
Jones &; Co dropped their differences and
united to prevent testimony Being heard
when the hearing had disclosed that the
trust companies were large holders Of the
promoters stock Of the brewing company
and handled q large amount Of the bonds
through their connection with Sperry,
Jones & Co No order was passed on the
petition.
Judge Dennis went out Of town yester-
day and did not sign the decree authoTiz-
ing the receivers Of the Maryland Brewing
Company to sell the property. The terms
Of the decree were decided upon Thursday.
The judge is not expected back until Tues
day.