New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-06-21
NICOLL ANSWERS COCHRAN
THE LATTER's APPEAL TO JEROME IN
TOBACCO CASES.

CHARGES CONFESSION OF GUILT IN RE-
F1-sAL. TO BE ExAMINED-sHARP CON
TRovERsY BETWEEN LAWYERS,
Before District Attorney Jerome left the city
yesterday, 10 spend to-day and tomorrow II lne
country he gave out letter which ne hau re-
ceived on Monday from W. Bourke COCHRAN
calling attention 10 accusations which hao oeeh
made against James B. Duke, Thomas r Ryan
and other directors of the American IooaC1o
Company in suits brought by George P. Butler
and Susan K Zines M. Jerome said ne hao
referred Mr.. Cockran's communication 10 AS
sfstant District Attorney Rand for examination
together with other documents ii the case
which Mr. Cochran had furnished There hao
been no decision TO present the case 10 INC
grand jury thus far, it was said, but the N
vestigation of the case had not been finished
Mr. Cochran is attorney for the plaintl1s IN
two suits against the directors OF the American
Tobacco Company and the Consolidated To-
bacco Company. to compel them TO account 10
the stockholders for profits made in an alleged
fraudulent conspiracy in obtaining the exchange
of stocks for bonds and to obtain damages equal
10 the difference in value between the bonds
Of the Consolidated Tobacco Company, whlcn
they hold, and the stock Of the American To-
bacco Company, which they parted with IN the
exchange. A motion for the plaintiffs 10 have
Mr.. Duke and Mr.. Ryan examined in the suits
was opposed on Friday OF last week in the
Supreme Court before Justice Clarke De Ian
cey NicoT counsel for the directors. said in his
argument:
OF what have. they accused, these defendants It
charge which is set forth such length. when ex-
cbarge them Win criminal conspiracy with
conspiracy under Section los of the Penal Code;
together for the purpose of defrauding the stock
holders out Of their property
MI Nfcon proceeded to argue that the plain
tifs alleged four overt acts to prove the conspir-
acy: the holding back Of money that should
have beer paid in dividends TO the stockholders
Of the American Tobacco Company and thus
dcceiving the stockholders as to the value Of
the stock; the formation Of the Consolidated
Tobacco Company as a swindIing operation; the
sending OUT Of a circular inviting the stock
holders 70 exchange their stock for bonds and
the issuing Of false reports 10 induce stockhold
ers to make the exchange. Mr. NicoU said that
having charged the defendants in the suits with
conspiracy 10 defraud the plaintiffs could not
move for the examination Of the defendants.
Justice Clarke asked if Mr.. Nicor wished TO
invoke the principle that may not be
called upon 70 incrinnate himself, and Mr.
NicoI replied: Under the circumstances of this
case. yes. sir; I think it is a perfectly fair
thing to do"
Mr. COckran's letter to the District Attorney.
inclosing papers in the case for examination. is
the following:
On Friday last in the Supreme Court, during the
hearing Of a motion 10 vacate two orders for the
examination Of James g. Duke and Thomas r.
them and others directors and officers OF tne
their Stockholders property OF enormous value
without consideration by fraudulent conceaIEnebc
misleading statements Mr.. De Lancey NicoIl, who
appeared as their counsel assigned as one % ms
set forth in plaintiffs papers constitute Grim
ana l; that his Clients could not TESTIFY these
transactions without incriminattng themselves,
De understood as pleading on behalf q
Duke and Ryan J3s P pr + GL PffS9S
haa Tf r 9iy Which taaf formed 54s h SUBJECT Of
the n9ti2n had suGGsed 55 IN ke SGanS Criminal
6eye9q Ine bTf n View Of the contrary opinion
publicly expressed by such an eminent autnGriIyT1
have after careful reflection. reached the conclu-
sion that it is ny duty 70 a D re1fT the
I send herewith all the papers read on the argu-
WfGos ImiTous deonstration that the acts de-
scribed in them constitute crime-IegalIy as WEI
MISUNDERSTANDING his coloquy with MI JUS
facts set forth in set ad csa Be fully 5
stantiated by compelling the production o. books
testify against themselves or invading in any way
the privilege which they in common Wltn an oi i
persons similarly situated have an undouoteo rlsnt
invoke
Last evening MI NicoI sent to District At
tornev Jerome letter stating that ne had
received a copy Of Mr.. Cockran's communlca-
ton and continuing
n T1Iv 1901 the Consolidated Tobacco Company
offered to purchase from the common C1
Of the American Tobacco Company ana the Con
fiuanraI Tobacco Company their respective snaFes
in exchange for the Consolidated company oohdS
bearing interest al per cent, at the rate OF Two
hords for one share 800 par value. OF the COM
mon stock OF the American Tobacco Company.
and one bond share 800 par value OF
All of the stockholders excepting those holding
Y coo shares of the American Tobacco COMPANY
and even a larger proportion OF the Continental
Tobacco COMPANY, accepted the oHer' ana *
Most Of these 1900 shares were then assembled
into pool syndicate, on behalf or which FOUR
suits have been brought, which, from one stand
point another, attack the validity or the con-
soIidated Tobacco Company's offer TO purchase
Most OF the persons interested IN this pool are
also connected with the Universal Tobacco Com
Butler and others g rival OF the American To-
bacCO Company in April 1871. and the suits which
have been brought are all under the direction or
control OF Mr.. Cochran and his associates. one OF
financial world a promoter OF strike utigar iOl-
In the brought, that OF Davis against
the Consolidated Tobacco Company and others.
obtained a order for Davts's examination, which
the court sustained motion to vaCate. After
aDpealing from that decision Davis within the
last few days has obtained, parte, Al order to
aside II he does not escape examination by
discontinuance, I shall probably be able 20 show
Just how and why and by whom the combination