New-York tribune., 1902-01-30
SAYS TRUST WAS WRECKED
ALLEGES sYNDICATES
RUINED ASPHALT COMBINATION.
HE DECLARES THAT THE NATIONAL, COM
PANY GAVE ss.soo.ooo FOR PROPERTY
KNOWN TO BE WORTH
ONLY 100000

Trenton, N. J., Jan. % (speciaD.-Charges OF
fraud and conspiracy against the principal men
in the Asphalt Trust are contained in a petition
of intervention Med in the United States Cir
cult Court here to-day by Harry Spinks of
Newport. Ky. in the proceedings by which two
confessed judgments of S3O1 500 each were re-
Gently recorded against the Asphalt Company
of America. and the National Asphalt Company
in favor of the Land Title and Trust Company
of Philadelphia Spinks. who stockholder
of the American Asphalt Company seeks to be
admitted as a defendant. and asks TO have the
proceedings reopened in order that he may have
the judgment against the American company
set aside having been fraudulently obtained.
The bill of complaint gives a general history
of the various transactions in which the COM
panies were involved and which. according to
Spinks, were designed to wreck the American
company for the benefit of the stockholders OF
the National company. He admits the insolv
ency of the National company, but declares that
were it not for the colusion and fraud of the
officials the American company would be able
to pay it's just debts 1t is charged by Spinks
that the application for receiver for the COM
panies resulted from understanding between
what he terms the Mack and Widener synd-
Gates. and was the elimination of a series of
fraudulent acts the part of these syndicates
and the various directors of the two companies,
all of whom, he alleges, were either members of
the syndicates controlled by them.
The bill declares that from June. 1899. until
October, 1900. the Widener syndicate owned the
bulk of the capital stock of the Asphalt Com
pany of America. Chief among those in the
syndicate. 1t declared, were A. B. Widener.
George D. Widener William L. Elkins George
w. Elkins. Sydney F. Tyler. Amzi Barber Avery
D. Andrews Ellis A Ballard. E. Burgess War
Il LAT nd
The Mack syndicate. which Spinks says con-
trolled the National Asphalt Company. included
John NJ. Mack. Arthur W. Sewall. Amzi L. Bar
ber. Joseph H. Mack and Robert II. Foederer.
The fraudulent acts, Spinks alleges, consisted
in unlawfully depriving the American company
Of its assets; imposing heavy fictitious and un-
authorized obligations. without consideration;
concealing it's earnings, and causing it to appear
insolvent with the design of inducing holders
Of the American Asphalt certificates to accept
under the contemplated plan of reorganization
a largely diminished amount of certificates and
thereby giving both present and prospective
value of the large holdings of the several classes
of securities of the National Asphalt Company
In the hands of the syndicates. These securities.
1t is said. would be otherwise substantially
worthless. 1t is also charged by Spinks that in
pursuance of the conspiracy and fraud the syn
dicates employed various agents. corporate and
individual. some Of whom he believes TO be in
nocent OF intentional fraud
CAPITAL ILLEGALLY REDUCED.
The transfer by the Widener syndicate Of
531 $50 shares Of the capital stock of the
American company TO the National company. and
66,S33 additional shares of the American COM
pany to the National company. Spinks says
in fraud of the statutes of New-Jersey and
of his right stockholder. it illegally re-
duced the capital stock of the American COM
pany. while by the statute the stockholders
remained liable for existing debts to the amount
of the unpaid capital The contamination of
this plan. II is charged. destroyed very large
part OF the assets of the American company
and OF the security of its certificates.
The petition declared that prior 10 December.
1900, sufficient earnings were paid to the Amer
lean company by its constituent companies to
enable il to declare its dividends, and that the
failure TO do was fraud on the holders of
the American certificates and part of
lawful design of the syndicates to wreck the
American company. 1t is alleged that, the
American company owned majority of the
capital stock of the constituent companies and
controlled their boards of directors il could
have compelled the constituent companies at