New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-12
WANTS HIS S225, 900 BACK.
Plaintiff Declares Other Underzorit-
erS Defaulted at First Call.

Suit was begun yesterday by Gardiner Hall. r..
a well known manufacturer of South Wellington.
Conn. in the United States Circuit Court against
the North American Trust Company for the recov-
cry Of S225 COZ. subscribed and paid a member
of the underwriting syndicate of the White Noun
tain Paper Company Gardiner Hall. jr. is well
known among manufacturers Of textile goods all
over the country. having extensive thread manufac-
tories in Connecticut and a New-YOrk office at
No So Walker-st. He of the Connecticut
Presidential electors who made Mckinley Presi-
dent and is prominent member of the Republican
party IN Connecticut
Henry WoIman, Of No. "a Broadway who is as
ISOLATED with Samuel Untermyer in the shipyards
investigation, and Henry NJ. BackEnar. of No OF
WaIl-st-, are named as counsel In the papers
If the statements made in the papers IN the suit
are correct, the raising of actual money for the
beginning Of business stopped before enough was
obtained to pay for the erection of plants. The
concern is now in the hands of receiver. and a
reorganization committee is trying to put it on its
feet.
similar suit was begun in the Supreme Court
in Suffolk County, a few days ago by August
Heckshe-. president Of the New-Jersey Zinc Com
pany, to recover S112,500.
Mr.. Hail. in his complaint, states that about
June, 1901, the North American Trust Company.
with Charles z. Locke, who Is known in the
Street as a promoter, became promoters of the
White Mountain Paper Company. organized TO buy
Up some four hundred thousand acres Of timber
land in New-Hampshire and Maine, and manufact-
pulp.
The company was organized under the laws of
NeW-Jersey with capital Of 80 00 Co.'s 0OO0O pre-
.ferred ana 600 An issue Of SIC
bonds was authorized, secured by first lien. The
preferred stock was 10 be cumulative after year.
paying per cent The bonds were 10 pay per
cent.
The plaintiff agreed to underwriting plan in
which il stated that the agreement became
binding when $5OVO,000 subscribed for by per-
sons satisfactory to the trust company He was
to take $3.50 Geo. par Of the bonds paying s20 for
them and getting them at &c. with ii bonus of pre-
ferred stock. Four calls 10 De made for the
money-one OF % per cent. when the s. $50 900 had
been sub crihed another six months after the
pIeion OF the underwriting, 20 per nine tbs
after the underwriting and 20 per cent the end
the first year. These calls we're made. and Mt. Hall
paid IN 900. Oaklegh ThOrHe, president of the
North American Trust Company told him by letter
that subscriptions In excess OF $0o00o0 had been
Mr. Hall says he believes that large amounts of
the so-caed underwriting and subscription Of
s. OCC coo made by persons of no financial stand
irg and against whom the agreement of subscrip-
ton could not be enforced at law, and that the de-
fendant in some instances knew that such subscrib-
ers were iusOlvent and financially irresponsible
Mr. Hall SAYS he is informed and believes that at
least % per cent of the subscribers defaulted in pay
rnent OF the first call but that regardless OF such
plaintiff and did not. as In duty bound, notify
IIaintif Of such default'
Alexander e Greene, who were counsel for the
ITnfted States ShIpbUi;ding Company. to Ger
tif to the legality Of the Incorporation OF the
paTy and the taking OF titles.