The evening world., 1903-09-23
.COLER CALLS SUIT
A POLITICAL MOVE
Former Comptroller DEGREES
Stockholders Attempt to Re-
cover from Him Alleged
Losses of Guardian Trust.

Counsel for the Guardian Trust Com
pany went before Judge Lacombe. in
the United States Circuit Court to-day,
and asked for the dismissal OF the suit
brought by stockholders against Bird
s. Ccler. former president of the com
pany, and several of the directors. Mr..
Golfer n his associates are charged
with misusing the funds of the COM
pany.
The former Comptroller characterize
the suit as a political attack and says
the mon behind 1t are bigger than nose
whose names appear in the complaint
The co~mplainants, he says. own less
than 10 instead of 70 per o Of the
stock. as they allege. After election
there will be nothing more heard OF the
charges. according to Mr.. Coler.
The stockholders are seeking to re-
gain through the courts money which
the allege was lost to h company
through loans made by color and his
associates. Tho complaint lays bare
much Of the inside workings of the
Guardian Trust Company.
When the stock OF the company was
doubled the complaint alleges n q
Coler agreed to take all Of the 5000
shares at $500 a share. 1t IL charged
that no and his associates took these
shares and deposited them in certain
New York banks as collateral for loans
to the amount of $500, 900. and that about
the Same amount of the funds of the
trust company were placed on deposit
In these banks with the secret agree
ment that 1t was to remain until the
loans were made good.
Interest Not Sufficient.
The banks paid for these deposits at
n rate OF 2 per cent. while in the squeeze
in the money market At that time from
q tn 20 per cent. could have been real
lied. The estimated loss to he com
pany, according to the complaint, was
The complaint alleges that Golfer made
false representations Of his hnanciai
strength and his ability to take up tne
81, 900, 900 in new stock and rally strong
financial interests TO the support OF the
trust company. 1t was upon these rep
reservations, 1t Is said, that Coler was
elected president. 1t is charged that
Coler's real reason In seeking all the
stock was TO gain control OF the com,
pam and manage II TO h proht OF
himself and his associates.
The complaint states that Ernest ":
Brown, formerly Vice-President, and
David Bennett King, formerly general
counsel for the company. learned OF
these loans and made a protest whlch
resulted In the banks requiring CoIer 10
take up the loans on Dec. "a. 1902. Then
IL Is alleged, that an underwriting syn
iicate was organized through Coler, con-
sisting OF himself and Directors Jones.
balkan Fairchild, Levy. Nisset and
Rarber. Coler was made syndicate q
aGer and wa empowered to deal In the
OF the Trust Company without
consulting his associates In the syndi-
cate.
loan on Shares Again.
They underworld the stock which
he had pledged for loans and obtained
other loans. 1t Is alleged the syndicate
advanced no margins but hypothecated
the underwriting agreement and $500
shares OF the stock with the National
dated National Bank
Then, under "a gentleman's agree
ment." the complaint alleges that
Coler and the others deposited $500 900
OF the Trust Company's funds in the
two banks with the understanding that
the banks were to have the $500. 200 as
long as the loans on the $500 shares OF
stock were In force.
Messrs. Brown and King discovered
this new arrangement on March 8 last.
and demanded the release OF the $780,
100 from the banks. This. the COM
plant says, the defendants refused to
do, claiming IT. the money were with.
drawn the banks would call the loans
and produce a panic in the stock OF the
Guardian TRUST Company.