The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1902-02-14
SALE STOPPED.
Flour Trusts Property IN
der Hammer for a $751;
100000 sMort-
gage.
oHANcERY INTERFERES
Bondholders Charge Con-
spiracy General Thomas
and Edwin Gould in
the Case.
gHANCERY INTERFERES

Special to eTha Jersey City News.}
TRENTON, February "A, 1892 "A pre-,
liminaxy injunction has been granted b,
i Vice Chancellor Stevenson restraining ths
sale Of fourteen different properties oWs''
ed BY the United States Flour Millina
Company which was advertised to be held
IN Jersey City today under the foreelos-
/ tire Of q $l509o.o 900 mortgage held BY the
Central Trust Company, Of Nsw York.
| This mortgage was given to secure an
| issue Of SIX per cent. bonds to that
| r1noant. The order was obtained BY
Grjggs, Dill & Harding, acting as solicl-
| tors for Mrs Caroline 7. Locke Of Orange
and four other first mortgage bondnoiders
of the company.
These fonr are Mrs. Anna W Hecker
and Henry Winslow White. Of NeE
York; G. S. Wilson, of Duluth, Minl ard
john Z. Dodge. Of Great Barringfon'
Mass.
The order, which is returnahle in Jer-
sew City, next Monday, was applied Tor
in connection with bin Of complaint
in which charges are made against
number of well-known capitalists
# il alleged by the five bondholders
mentioned that conspiracy was en-
tered into too secure the payment OF the
.ornora ton 5 floating inde btedness by the
execution of the mortgage referred TO
and this at the expense of the first mort
gage holder s.
these charges are directed against the
reatraI Trust Company andshe Produce
exchange Trust Company and such
nrou,irerlt financiers as General samuei
Thomas Edwin Gould. J. Edward SIM
mons. Bravton Ives. Warner Van Nor
den. William Lanman Bull and George
william Ballon
! When the rule is returned on MONDAY
next an effort will be made OF secure q
ner manent injunction restraining the
trust from further action
! The reorganization sought. so the bill
/ declares. ITO compel the owners OF the
frst mortgage bonds TO surrender priority
Of lien on the various asests OF the com,
| pany, and to create q fund with wnlch =
pay off ali the floating Indebtedness O
| the company ard Of its suosidlafy CON-
panieS the entire expense OF the re-
organization of the said companies ahe
the incorporation of a new company, q
lannounced that a new corporation Wou:s
be created under the laws Of New jersey
under the name of the Standard h1oes
Company, to acquire the properties tnef
owned BY the United States Milling Coin
psny. which would operate the same 10
the benefit of those cooperating IN IN
/ reorganization, and announcing that un
/ less the nondho,ders. deposited their se
Eeurities with them, the committee. ans
maid the assessments provided in tn
prospectus. they would not be permitted
to participate in the reorganization or il
the benefits to be derived therefrom.
j on July 26, 1900 the Central Trust Com
/ pany. as trustee of the mortgage, began
foreclosure proceedings In the Court
4 Chancery on the ground of default o
1 payment of the interest coupons. It ap
/ pears that bonds of the Hecker-Jones
Jewell Milling Company were held by tn
Central Trust Company as partial col
i lateral fer the $4,000 90 mortgage.
The interest on those bonds was KEEP
up, but the Central Trust Company tn
ccmplainaEts affirm, neglected TO co.lec
tine interest thereon so that it might no
have funds in hand to pay the intereS
on the first mortgage bonds of the Unitei
States Flour Milling Company and nigh
lscon declare the principal sum due. in &C
cerdance with the wishes OF the reofgani
eaton committee"
4 After continued litigation IN the Stat
and Federal Courts, a decree of fore
closure was obtained in the former an,
Joseph Cross, special master, Of Jerse.
city. was designated to sell the mort
gagged properties this morning
The complaining bondhosders now seel
to Intervene on the ground that the fore
closure decree pr vides for the sale Of tn
fourteen properties in their entirety-no
separately and, according 70 the bill, tn
intention IS to have The Standard Flou
i Company, or an affiliated party, buy
The bumped assets when they are put Vi
at auction.