New-York tribune., 1902-01-30

any time TO declare dividends to any amount
warranted by the earnings.
The decline in the prices Of the securities OF
both companies. and the appointment OF COM
mittees ostensibly to protect the holders or Ger
uncates OF the two corporations. is referred 10
by Spinks. who charges that the committees
acted in concert with the companies. with a view
OF forcing the National company into insolvency.
He says IL result OF this that the
receivers were appointed. The bill goes into the
reports of the various companies involved to
substantiate an allegation that the directorates
and management of the American and National
Asphalt companies; the Land. Title and Trust
Company, the Girardr Trust Company and the
ticaI and were controlled by the same business
interests. frequently represented by the same
counsel.
There is valid reason why the earnings of
the two asphalt companies should be stated in
combination, Spinks declares. He says that the
National company has no earnings. and that
the 81 400 600 claimed as its earnings are really
the earnings of the American company. These
he adds. are in themselves almost sufficient to
make all the payments pretended TO be due or
overdue. The fund OF S6.OoO.0O0 is intact
cept for the withdrawal OF S1Ooo,OOO. and Is
ample TO make all payments alleged 20 be due
and similar payments for many years to come.
He suggests that even IL some Of the securi-
ties in the S6,OoO.O0o fund are not available for
lnmediate sale. the loans Of the constituent
companies. aggregating $1,000 900. could be
called at any time by the directors Of the
American company.
SAYS NATIONAL STOCK FALSELY ISSUED
Furthermore. he says the American company
may dC any time call on the S24.UGO.UpO. unpaid
capital stock for the payment either OF it's debts
or working capital Admitting the insolvency
of the National company. Spinks continues It's
stock. to the amount of S1s.Ts9. .514. which was
issued pursuant to the plan as full paid" was
falsely and actually fradulently issued being
virtually without any consideration The hold
ers OF this stock. he says. are. therefore. liable
to be creditors of the National company for
the full amount of stock held by them OF
this stock 81 .S94 of preferred and S5.9SS 42O
OF common stock issued to the holders of
the stock of the American company for SOS S42
shares of the stock of that company trans
ferred to the National company
The remainder of the capital stock of the Ma
tonal company. S3.5OO.OO0 preferred and So 10o-
Uoo common, was issued. il is alleged. in ex-
change for the stocks and properties mentioned
In the plan. These stocks and properties as set
1ortn In the Dill or complaint OF William F. Har-
rity, and others, against the National company
filed simultaneously with the bill of complaint
in this suit. and verified by Arthur W. Sewail
the secretary and treasurer of the National COM
pany, were worth less than 81 .431 .24S. This II
is charged. was known TO the directors OF the
National company and the Mack syndicate.
when the SS.6Oo.00O of stock of the National
company issued.
Spinks denies that the American company is
insolvent. He charges that the directors of the
American company have misled and deceived
the court. mismanaged and abandoned the prop
erty, and acted in cOllusion with the Widener
and Mack syndicates to depreciate the value OF
the stocks and make the company appear to be
without funds and resources He points out that
the present receivers, by virtue of their control
of the National Asphalt Company. their busi-
ness interests. and their connection with the
syndicates, are improper persons 10 act as re-
ceivers
The Land, Title and Trust Company he wants
required to file in court full list of the holders
of the collateral gold certificates of the Ameri-
company, together with their addresses. He
asks that the present receivers be set aside and
new receivers. free from any affiliation or con-
nection with any of the directors of the Ameri-
can company or the National company. or either
of the syndicates. be appointed a further
quest that he makes is that the receivers be
instructed 10 carry out the plan of September
13, 1900. and fulfill all the obligations of the
company.
The receivers Of the Asphalt Trust met at No. II
Broadway yesterday. and. cs usual. declined to
ANYTHING of what steps we're being taken 70 rsor
ganize the company. Mr. Sewau. the secretary.
said after the meeting that no scheme had yet
been adopted.