The times. [volume] (Richmond, Va.) 1890-1903, 1902-06-29
T'ORACCO TRUST CASE
HEARD IN new YORK
Bourke cochran's Action Against
Defendant Directors.
HIS VIGOROUS STATEMENTS
lawyer Nicoli Calls the Charges False
and Reckless" and Urges Dis
trict Attorney Not to Move
in the Matter.

/ Dist!ct Attorney Jerome has received
for the plaintiffs in the civil suit brought
against the Directors Of tho Consoldat-
ed Tobacco Company by George F. But
Ter and Susan *. Elnles which he has
turned over to Assistant District Attor-
ney Rand to see whether there is war
rant for the presentation to the grand
jury of criminal charges agains direc-
tors Of the company. ar. Cockran's let
ter is In part as follows:
On Friday last in the Supreme Court,
during the hearing Of a motion to va
cate two orders for the examination of
in actions which had been brought
against them and others as directors
and officers OF the American Tobacco
Company, for obtaining from their stock
holders property of enormous value.
without consideration. by fraudulent
concealment OF earnings. present and
prospective, as well as by misleading
statements. Mr.. De Lancey Nicoll. who
appeared as their counsel. assigned as
lone Of the chief grounds Of his applica-
ition that the acts set forth in the
plaintiffs papers constitute q criminal
offense under section 1853 Of the Penal
Code, and that his clients could not
testify to these transa ctions without in
terminating themselves.
Asked specifically by Mr., Justice
Clarke IL he meant to be understood as
pleading on behalf Of Duke ana Ryan
the privilege OF persons accused OF
crime, he answered In the affirmative
I had myself believed that the per-
petrators OF the stupendous frauds which
Formed the subject Of the motion had
succeeded in keeping themselves beyond
the letter Of the law defining criminal
conspiracy, but in view OF the contrary
opinion publicly expressed by such an
eminent authority-and supported by the
most Impressive reasoning-I nave. after
careful reflection. reached the conclusion
that it IS my duty to present the matter
to the prosecuting officer of the county
send herewith all Mr.. Nicolfs luminous
demonstration that the acts described
I'm them constitute a crlme-legaiiy as
well as morally.
Plaintiffs in the two actions were hold
ers Of stock in the American Tobacco
company. which they exchanged for 4
per cent bonds of the Consolidated To-
bacco Company. They allege that they
were defrauded in the exchange. where
profits properly belonging to them went
10 the directors whom they accuse
Importance is given In the deposition
Of the plaintiffs to their charge that in
Offering bonds yielding per cent. on
The par value OF the stock to be taken
In exchange for stock paying 6 per cent.
and earning per cent, the defendants
noted on advance information that the
company would take. full benent OF the
1nn rf Al -
thousand internal revenue tax on cigar
cites. The claim is made by the plain
TINS that this increased the earnings OF
the company much more than $1,000. 600.
Mr.. Nicoll in turn has forwarded let
ter to the district attorney in which,
efter stating that Mr.. Cochran had sent
him a copy Of his letter to Mr.. Jerome,
he says in part:
In July, 1901. the Consolidated Tobacco
common shareholders of the American
Tobacco Company and the Continental
Tobacco Company their respective shares