The daily morning journal and courier., 1903-12-12
SUIT TO RECOVER S250,OO0
BROUGHT BY GARDINER H4II,
 JR., OF THIS STATE.

the White Mountain Paper Company
 Fizzie-aIr. Hall Claims That He Was
 Dnped to Pay Over she Money. -
 New York, Dec 11.-suit was institut- ed to-day by Gardiner Hall. jr., we'll known manufacturer of South Willing ton, Conn.,, in the circuit court of the United States, against the North Amer ican Trust company for the recovery of s225,ooO subscribed and paid by him as a member of the underwriting syndi- cate of the White Mountain Paper com pany.
 The White Mountain Paper company, which never went into active operation, is now in the hands of a receiver and an organization committee is trying to put 1t on it's feet. Mr. Hall in his com plaint states that about June, 1901, the North American Trust company, with one Charles E. Locke, became pronlo- ters of the White Mountain Paper com pany, organized to buy up 100000 acres of timber land in New Hampshire and Maine, east and south of the White Mountains, containing about S,000000 cords of spruce, poplar and other valu- able woods suited to the manufacture Eof high-grade papers and to other com merciai uses, for which purpose pulp mills were to be erected. These prop Asas, s.,. .1.,xI Itnl fl,@ George B. James, of Boston.
 In the promotion of this concern, ac- cording to the complaint, the trust company was to advance the money to enable Locke to induce investors to buy bonds and stocks. The company was organized under the laws of New Jersey with capital of s15,00O, ,000-$5, ,O00, ,000 preferred and s10oo0,OO0 common. An issue of $10.00o, ,0G0 bonds was authoriz- ed, secured by a first lien. .
 The plaintiff alleges that he agreed to an underwriting plan that the agree ment should become binding when five millions were subscribed for by parties satisfactory to the trust company. He was to take $250,000 par of the bonds, paying s225,00o for them, getting them at 90, with a bonus of preferred stock. Four calls were to be made for the money, the first one, of 25 per cent, when the five millions had been sub scribed. On March II, MT. Hall states, he got a letter from Oakleigh Thorn, president of the North American Trust company, stating that subscriptions in excess of the five millions had been se- cured and that the first payment was due. On March 21, 1902. Mir Hall says he paid $62500, and subsequently, the other payments were made.
 Mir. Hall says he believes that the statement that the underwriting had been made was not true, 'but that large amounts of said so-called underwriting and subscription of five millions were made by persons of no financial stand- ing and against whom the agreement of subscriptions could not be enforced at law, and that the defendant in some instances knew that such subscribers were insolvent and financially irrespon- sible, and in other instances could have ascertained this fact by exercising dil- igence and making Investigation, and that the character of said so-called un- derwriting subscription, so pretended to have been secured by said defendant, was not of such a nature as to justify the defendant in declaring the same operative CT in making said call"
 In all, he states, he paid $225,000 for $250, ,000 par value of bonds and 625 shares of preferred stock, due him as a bonus. He believes that had the de- fendant complied with the terms of the underwriting agreement, this stock and bonds would have been worth s225,000, but are, as matter of fact, he believes, of no substantial value now.