The sun. [volume] (New York [N.Y.]) 1833-1916, 1901-12-15
DENYTHEY WRECKED COMPANY
DIRECTORS or ELECTRIC con-
Germs MEET CHARGES.
Demurrcrs and Answer Filed I'm Suits Of
Richard Sieginsn Before Jersey Chan.
Gerry Court Accusing Prominent New
York Men OF Conspiracy and Fraud.


York Men OF Conspiracy and Fraud.
TRENTON, N j., Dec. 1.-two demur-
rers and an answer were fled In the Court
Of Chancery to-day in the suits brought
by Richard Siegman of New York against
the directors Of the Electric Storage Bat
terry Company and Of the Electric Vehicle
Company, on the ground that they par
ticipated in various fraudulent stock job
bling transactions and conspiracy to di-
vert from the treasury Of the Vehicle COM
pany into hat Of the Battery company
certain assets for their personal gain.
The demurrers were filed by Corbin 4
Corbin Of Jersey City, representing Martin
Maloney and others ant George H. Day
and others, the defendants In two Of the
suits. The answer Of the Storage Battery
Company was filed by Lindabury, Depue
q Foulks of Newark. The demurrers
set forth nine reasons upon which it Is
asked that the suits be dismissed. Among
these are that such an actin as Is disclosed
in the bin Of complaint can be brought
only by the corporation itself in an action
at law: that the penalty for which the
action is brought can be enforced against
the directors only In the event OF the DISCO
luton or insolvency Of the corporation: that
IL uOth fOt uDItdT lUdl tnt u~t1tflUdntS NOteU
for excessive and unearned dividends
in bad fai tn, or with the knowledge that
they were not earned.
In the suits of Mr.. Siegman 1t il sought
to hold the directors of the Storage Battery
and Vehicle COMPANIES responsible both
for wrecking the Vehicle company and for
declaring $500 600 Of dividends when the
company had operated at a loss from the
start. Among the Vehicle company's pres
ent or former directors are Col. John Jacob
hstor, Martin Maloney; Albert 4. Pope,
Regain, Daniel II. Shea. Philip T. Dodge.
Arthur Phillips. Herbert Lloyd. Robert
NJ. Alloyd and George Chapman, These
were largely Identical will the directors
OF the Storage Battery Company.
Thu answer Of the Storage Battery Com
pany IL a general denial, together with the
directors version of the various stock trans
actions by which they are alleged TO have
mulcted the stockholders of the Vehicle
company. The answer denies specifically
that any stocks Of the Vehicle company
were at any time diverted into the treasury
of the Storage Battery Company through
any conspiracy among the directors OF the
two concerns, or that in pursuance of such
alleged conspiracy the directors Of the Stor-
age Battery Company procured the incor-
poration of the Columbia Automobile Com
pany.
A similar denial is made that the Columbia
compan was incorporated at the instance
OF the Storage Battery and Electric Vehicle
companies directors, but II is asserted
that the company was formed through
the efforts Of certain large stockholders
OF these companies for the benefit of both
concerns. II Is denied that the Board
OF Directors OF the Columbia company
was controlled by the directors of the
Storage Battery Company or tha they
caused the Automobile company TO sub
scribe for 5000 shares Of the capital stock
of the Columbia company.
Numerous other transactions and trans
fers OF stock are admitted to have taken
place. but In each instance a specific denial
Of fraud, conspiracy or COLLISION Is entered.
The various suits instituted by Mr.. Sieg-
man, all OF which involve practically the
same transactions, but seek TO hold differ
ont individuals or corporations responsible
form one OF the most complicated litiga-
tons which the Court Of Chancery has ever
been called upon to ad Indicate. Before
the case comes up on final hearing the
court viii hear argument and pass pom
the demurrers filed to-day.