The Washington times., 1903-08-21
SIOCKHOLDER MAKES
A SERIOUS CHARGE
Accuses Thomas ID. HenSey
of Misuse of Funds.
FILES AFFIDAVIT In COURT
Alleges That as Manager of lie DToit
Park Land Syndicate Hensey
Did These Acts.

Charles H. Merillat, a stakeholder in
what is known as the lie Droit Park
Land Syndicate, has filed an affidavit in
the Supreme Court of the District in
which he makes serious and sensational
charges against Thomas c. Hensey, In
connection with his management of the
affairs of the organization
Some time ago members of the syndi-
cate, DR.. Charles w Richardson. Joseph
w. Little. and eleven others filed pro-
eeedings in equity against Thomas G.
Hensey, Mellen c. Hooker, and Melville
ID. Hensey asking for an accounting and
discovery of the affairs of the syndicate,
and also for the appointment of a re-
ceiver- The land acquired by the syn
dicate was purchased from Mrs. Amanda
Dean, it is said. for something less than
$150.000 in January, 1898.
This price was considered moderate
and good investment The complain
ants. however, state that they were un-
able TO learn the exact price paid for the
land.
Mrs. Deans Story.
In his affidavit Mr.. Merillat says he
has been informed by Mrs Dean that the
price paid her for the land was about
s120, 900, and not $4,000 She also said
that the original rate of interest. per
cent. was afterward reduced to 5lk per
cent. Mr.. Merillat says Mrs Dean asked
him IL the shareholders were receiving
the benefit of the reduction made in the
rate OF interest. He told her that from
what he had learned of the business
the shareholders, he was sure, are still
paying interest at the rate of 6 per
cent.
Mr.. Merillat further says that upon
examination of certain accounts in con-
nection with the affairs of the syndi-
cate he found that the amounts set out
in certain checks do not correspond with
the amounts upon the stubs
Continuing Mr.. Merillat SAYS:
Never Saw Last Check.
Mrs. Dean never saw the last check
purporting to be drawn to her order on
interest account in each OF the last three
semi-annual interest periods and says
she was never paid the amount called
for by said check, but that the check
IN each instance was cashed or deposit
ed TO his own credit by Thomas G. Hen
sey, and Mrs. Dean or her agent paid
lesser amount than the face OF the
check. said Thomas G. Hensey pocketing
and misappropriating the difference or
over 500 each six months, the difference
amounting TO one-half per cent rer
year on s40,699."
Mr.. Merillat also says that he finds
the following statement in the report CT
the trustees and accountant, under date
of December Is. 1893: mo salaries or
commissions paid to anyone"
Allowances on Record.
Notwithstanding this. he says, he fur
ther finds the following entries in the
account:
ITO NJ. c. Hooker, for supervising con-
struction of buildings 1899. and 1900.
$500; Thomas G. Hensey. for ass istancc
in supervision of construction of build
ings and hnanciering the same. $500;
Thomas G. Hensey, for supplying clerl-
cal services for four years, $4O0: NJ c.
Hooker. allowance of per cent on col
lection of rent, and assistance in man
aging houses to December 81, 1901,
$163.32; Thomas G. Hensey, for promot-
ing legislation and legal services 81. 500. -
and other small amounts.
With the exception of one or two Of
these items Mr.. Merillat says. none
were ever reported TO the shareholders
| by the trustees. The matter will come
up for hearing before Justice Barnard
| on August 25.