The Wilmington daily Republican., 1902-01-09
CHARGES . !.
OF FRAUD

/ N~ = HNN"N oAAbV UlIC dUuA
Ell aud misused the corporate power.
obtained under certificate In this
state.
Theattorney-general filed an infor-
nation in the nature of a writ of ouo
warranto, setting forththat the Sure
ty Company filed with Secretary OF
State Layton, in Dover in May last
a false and fraudulent certificate OF
payment OF capital stock.
This certificate, which is signed
and supported by the atfldavits o.
Robert L. Martin, president, ant
Harry Velthusen, secretary of the
Surety Company, declares that the
entire capitalstock of one million dol.
lars had been paid incash at the time.
Embodied in the information Is an
affidavit of John j. McNichol, count,
clerk of New York city, to the effect
that at the time President Martin
and Secretary Velthusen signed an
swore to the certificate the capitn.
stock of one million dollars had not
been paid in in cash. Because of thY
condition of affairs, Attorney GeneritsS
Ward asks the court to deprive thel
Surety Company of its corporal ~
powers and to declare forfeited its
charter.
The Surety Company has been In.
volved in a legalclash with the Heinze
copper interests in the New York
courts recently. and it will be recalled
that Secretary OF State Layton was
summoned as witness in the case. 1
and was requested to produce the 4
certificate of payment in New York
courts. Whenhe essayed to take the I
papers from the state, David r.. Mar I
vel. Josiah Marvel and William S.
Hilles, on behalfOf the Delaware Sure
ty Company, applied to Chanc elloi
Nicholson for an injunction to prohib.
1t the papers being removeffrom the
state. After hearing argument In the
case, the Chancellor permanently en-
Joined DR.. Layton from taking the
papers pertaining to the company in
his Office out of the jurisdiction of the
court.
AS soon as service is secured on the
surety Company, throught Its resi-
dent Office, the Delaware Charter
Guarantee and Trust Company, tho
case will be brought to an issue in
Superior Court Argument will be
made In support Of the allegations In
the information by the attorney-gen-
aral and in behalf of the certificate of
payment by attorneys for the surety
Company, The same question was
raised against the company in the
New York courts, but it could not be
1ecided because the papers were not 4
produced in court by DR.. layton.
The information presented by At.
,orney.Gencral Ward sets forth:
"1Ierbert II. Ward, attorncy-gen.
'ral of the State of Delaware, who
lcs for the said Staze of Delaware in
his behalf, comes here before the
ndges of the Superior Court of the
state OF Delaware, in and for New
'astle county, on this sth. day of Jan.
lary, A. D. 1902, at the November
erm for the year 1901, and for the
aid state Of Delaware gives the
ourt here to understand and be in.
ormcd that the Delaware Surety
company. corporation existing un.
er the laws Of the State of Delaware
duly certified copy of the certificate
I Incorporation of which company "a
crcto attached, marked Exhibit"
nd is hereby made part of this In
did on the 10th. day OF
lay, A. D. 1901, abuse and misusa
S corporate powers, privileges and ]
anchiscs by filing or causing to be
led in the Office Of the secretary Of !
ate at Dover in the State Of Della. (
are. a certain false and fraudulent.
which said false and fraud,A
lent certificate is in the words, let
rs and figures following:
We, Robert l.. Martin, president.
I'd Harry L. Nelthuscn secretary
the Delaware Surety Company, a
'rporation created by and under the
VS. of the State ofDclaware, do here.
Certify that the entire capital
ock of the Delaware Surety Com.
my, said corporation of one million
'llars. has been paid in cash.
" New York. May l5. 1901. j
"Dclaware Surety Company, :
Shy Robert l.. Martin, President,
"Harry Nelthuscn. Secretary.
Accompanying the certificate is on
|ldavit Of Martin and Velthusen.
ade before Thomas Adams Jr.,
tary public of New York county,
d attached to the certificate is. the
rtiticate of John J. McNichols count
clerk. in the city of New York,
rtifying. in substance. "that said
tomas Adams, Jr.. was notary
bic at the time the above neut tion.
affidavit was made, and that his
mature thereto is genuine, duly ~
med by said county clerk. That u
d certificate and the affidavit Of \
d Martin and Nelthnsen thereto
-ached were, intact false and untrue
lsmuchas said capital stock Of said<
laware Surety Company OF $1,000 "a
has not been paid in in cash 40
, time of making and filing of the
d certificate and the said affidavit
said secretary of states Office.
Wherefore, the said attorney r
leral of the said state prays the
vice OF the cour! here Ia the prem
8 and that due process Of law be \
arded against the said Delaware
rety Company in this behalf to
'wer and show to the said state By
at warrant it claims to have use
enjoy the powers, privileges aud
nchises tf a corporation; that 10
'utsted ofits said powers, privileges
franchises. and that Its certificate
charter Of incorporation aforesaid
y AZ od ,pI f,rSn;tol