The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-01-30
NEW ASPHALT FRAUD CHARGES
TRUST RECEIVERSHIP ATTACKED
BY A STOCKHOLDER.
say Design WA TO Butcher the American
Company for the Beneft OF the
National Stockholders -Mack and
WIdener syndicates Gravely Accused.

NutOiui StoChnOtutfs- aio
W1dener syndicates Gravely Accused.
TRENTON, N. j., Jan. 2o.-Charges of
fraud and conspiracy against the magnates
OF the asphalt trust are contained in a petit
ton OF Intervention filed In the United
States Circuit Court to-day by Harry
Spinks Of Newport, Ky, In the proceed
ings by which two confessed judgments for
1901 500 each were recently recorded against
the Asphalt Company of America and the
National Asphalt Company In favor Of the
and Title and Trust Company Of Phila-
delphia. Spinks. who was a stookholder OF
the American Asphalt Company, seeks to
be admitted as party defendant and asks
TO nave the proceedings reopened in order
that he may nave the judgment against the
American Company set aside as having
been fraudulently obtained.
The bill Of complaint gives a general
history Of the various transactions In which
the asphalt companies were involved and
which, according to Splnks. were designed
to wreck the American Company for the
benefit Of the stockholders Of the National
Company. He admits the insolvency OF
the National Company, but declares that
were II not for the collision and fraud OF
the officials the American Company would
be able to pay It's just debts.
1t is charged by Spinks that the applica-
ton for a receiver for the asphalt companies
resulted from an understanding between
what he terms the Mack and Widener syndi-
Gates, and was the elimination OF a series Of
fraudulent acts on the part Of these syndi-
Gates and the various directors OF the two
companies, all of whom. he alleges, were
either members Of the syndicates or CON
trolled by them.
The bill declares that from June. 1899,
until October, 1900. the Widener syndicate
owned the bulk Of the capital stock OF the
American Asphalt Company. Chief among
those in the syndicate, the bill says, were
Peter A. b.. Widcner, George d. Widener,
William l.. Elkins, George " Elkins, Sydney
F. Tyler. AMI l. Barber, Avery D.. Andrews.
Ellis A. Ballard. T.. Burgess Warren, William
j. Latta and William II. Croker, The
Mack syndicate. which Spinks says con-
trolled the National Asphalt Company, in
cluded John NJ. Mack, Arthur W, Sewall,
AMI l.. Barber, Joseph II. Mack and Robert
II. Foederer. Spinks specifically charges:
The said fraudulent acts consisted in I'm
lawfully depriying the AmericanCompany
of lis. assets: imposing heavy fictitious and
unauthorized obligations without consid-
e~ration;in concealing it's earnings and finally
fraudulently causing it to appear insolvent,
with the design Of inducing holders OF the
American Asphalt certificates to accept
under contemplated plan of reorganization.
a largely diminished amount Of said certi-
6cates. and thereby give both present and
prospective value TO the large holdings OF
the several classes Of securities Of the Ma
tional Asphalt Company now held by said
syndicatcs, which securities would other
wise be and are substantially worthless
II il further charged by Spinks h a in
pursuance Of said conspiracy and fraud
the said associates had employed various
agents. subordinates and servants and
tools. corporate and individual, some Of
whom your petitioner believes TO be inno-
cent Of the real purposes and intent OF
their acts.
Sninks is the ow ner Of SIPS 900 OF the
American c~ertifica ties and OF 90 shares
capi,al stock Of t he American Asphalt Com
panv. for which he paid sl4 a share In the
omen market in September. 1899. He says
oniv a. a share had been paid up on the
stock and he has since paid an assessment
of S. on each share.
Spinks specifically charges that applica-
ton for "A receiver was the result Of an I'M
d%estanding and collusion between the
Two ryudicateS, a circular OF sep 10
1900. calling for the deposit OF certificates
~ the American Company with the Equit-
able Trust company OF Philadelphia, IN
cKchange for stock In the National Asphalt
company, was, according 10 SpinkH, con-
r.iNtd and founded IN fraud Npinks AZ
s.,t. tLat Al Wa "a fraudulent and oOllu-
siye device 20 enable the stockholders
az the American Asphalt Company, a very
larg. portion II which consisted 81 the
Midrnrr syndicate, 10 escape ther re-
80 80 Il aIn uNIN.NI THRTHN I'm
al rs capital stock by transferring the
,ama collu-lyely 10 the National company,
r.gIyiuy in Iaymeut Collatei al uu-t Ger
ud.ates 81 he Aa'iJuul company .
we'll knowing ihai go" Nalloial com
PAM Wa totally unable 90 meet ttr rnpf-
iu.l- obligations including ~ OO1.O1. i'm
po..i utuu % hN the transfer u the Amen-
can company stock
Tie transfer by the Nidonor syndloats
AT Lst $50 char 81 ths capital stock II tho
American r.upany - the National cum-
nary aud 40 G1 Il luual shane 81 the
Al. uran COMPANY 1ths National oumIanS
hplnlr nayr, Nas m lfaud ~ m" statute
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