The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-07-07
COURT ORDERS ASPHALT SUIT
,c,JNST GEN. GREENE AND 9TH
Frs ron $4,000, 900.
uscel,er Reports That stock Of Com
st,tuent Companies Was Purchased
nj Fabulous Prices, and Intimates
COLLISION and Fraud Among Stock
holders and Promoters OF the Trust
.-.Grrtlltors VIII He S2s 600, 600 Short

holders and Promote rs OF the Trust
-GretlltOrs VIII He S2s 600, 900 short
TRENTON, July 8-Judge Kirkpa trick
AHMED an order in the United States Cirouip
rourt to-day directing Henry Tatnall,
aa receiver for tho Asphalt Company Of
America, 10 bring suit against Gen. Francis
Greene and others to recover profits
alleged to have been Illegally made in the
organization and manipulation of tho
asairs OF the asphalt trust. Others who
arc TO be made defendants In these pro-
,.edings are Amzi L. Barber, George ".
Elkus,J. \. Albright, Edward Hayes, C. X.
Robinson, j.. Burgess Warren, William
+, Elkns, George d. Widener, Sidney F.
TYLER, William J. Latta. William II. Crocker
and Henry G. Spinks. The last-named
defendant has made a number of unsuc-
cessfu efforts to force a different plan OF
reorraniza.ion and settlement in the wind
Ing up OF the defunct company's affairs
Judge Kirkpatrck's order was based
upon report presented to the court by
Receiver Tatnall to-day, showing the distr-
button Of the unpledged assets of the COM
pany and recommending that suits be
brought against the stockholders named
for s24 900 OOO alleged to remain unpaid
on the stock issued to them. On the capital
stock Of the company, consisting Of 8O0,000,
par value $50, IL is charged that only $40
share has been paid in
The report shows that all the assets of
the Asphalt Company of America have
been sold for So $4,000, and that after dis
ributing all moneys received there will
remain due to the creditors OF the Asphalt
Company Of America more than s27. $50, 900.
Even should call be made on all stock
holders for the amount unpaid on their
stock there would be deficiency of
S. 100000.
1t is charged by the receiver that Gen
Greene, George W. Elkins and Amzi Barber,
by the transfer of 80 975 shares of stock of
the United Asphalt Company TO the Asphalt
Company Of America made a profit of
2,O4l, SO3, figuring the collateral gold oertif-
fcates they eceived in return at the highest
selling pri ce, and s2,oe8 $50, figuring them
at their lowest selling price. The sale as
sets of the United Asphalt Company it Is
alleged, consisted Of the capital stock of
other corporations.
II is also alleged that from the sale of
e493 shares Of stock Of the Warren -Scharf
Asphalt Company for 50 ,27s, 800 In gold GER
tificates Gen. Greene and Barber and Elkns
made a profit OF 3709 ,970 at the highest
price Of the certificates, or $3.50 900 at the
lowest price.
The receiver says that the par value OF
the Warren-Sohart stock was 500 and it
was put into the trust at S24O. 1t set forth
that the ma ority Of the Warren -Scharf
stock was acquired between the time it
was decided to form the trust and the time
at which 1t was sold to the trust.
The money to purchase this stock, the
receiver says, was furnished as follows:
J, J. Albright. sllS,s7s, In return for which
he received $l70 1870 in collateral certificates;
A. l.. Barber, e28S. ITS, receiving In return
1884 ,426 In certificates; Frances V. Greene,
ssO,55O, receiving 90, $50; Edmund Hayes
se4 $50, receiving sss, 724; G., X. Robinson,
go, a2e. receiving soO, s74; George d. Widener,
2al6, s2S. receiving 1927 ,2e4: George w,
Elkins. William l.. Ekins, Snyder +. Tyler,
5000 each. receiving $3.50 900 each.
The receiver charges that Greene, Barber,
Hayes, Robinson, Widener, George W.
Elkins and Warren, after the plan had been
conceived, purchased the stock OF the new
Trinidad Lake Asphalt Company at S4s so
share and put 1t into the trust at 500 a
share, making profit OF s7s,477, William
II. Croker, one OF the promoters, 10 charged
with having sold to the combination 100 $50
shares OF the Aloatraz company In West
Virginia at 90 q share, the par value being
Vs. At the time Of the formation of the
aOl 800 shares OF Alcatraz stock and the
receiver says he has been unable to ascertain
at what price he acquired the additional
stock. He expresses the belief, however,
that he made very handsome profit on
the deal and that his profit is illegal.
1t is further alleged that Crocker also trans
tsred to the Asphalt Company of America
stock az ssh share, the par value being
81 share. At the time OF the formation
OF the combination Crocker held only / 1893
shares Of the Denver Paving stock. The
receiver is unable to estimate the likely
profit on this deal
William j, Latta transferred to the
American Company 305 shares of the Alca-
traz Paving Company stock, the par value
Of which was $50, for which no received
$500 share. Prior to the formation Of
the plan Latta, according TO the receiver,
owned only thirty shares of Alcatraz stock,
and Mr. Tatnall says he has been unable to
ascertain at what price he acquired the
additional PTS shares.
Harry c Spinks, who has brought half
dozen suits attacking the reports OF the
receiver and making allegations OF fraud,
u charged with having transferred 1905
shares OF Southwestern Alcatraz Asphalt
Company, s84 a share, to the trust. Prior
TO the formation of the plan he was the
holder OF only 5S5 shares. and the receiver
is unable to discover at what figure he
got the additional 4l0 shares and cannot
therefore estimate his profits.
y. 1t is pointed out by the receiver that
the Asphalt Company of America paid
2 gold certificates for stock of the follow
ing these sums per share: Atlantic Alca-
traz Asphalt, 81 900 par value 500; Southern
Asphalt, si,02O, par value 500; Alcatraz
Paving, $500 par value $50 Utica Paving,
SlO, par value 500; Barber Asphalt Paw
ing, $500, par value 500; New Trinidad
Lake Asphalt, 500, par value S4s so; War
rem scharf Asphalt Paving, s24O, par value
500; Aloatraz Asphalt Paving. $3.50, par
value 500; Acatraz OF West Virginia, SO,
par value S. Denver Paving, IS, par value
500.
:, In all these companies the receiver charges
that stock was held by the promoters and
was transferred to the new company at
The increased prices.