New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-02
CALLS 1T BLACK HISTORY
SHIPBUILDING HERRING.
arguments for Change Of Venue on
KaUanaugh Motion.


Albany. April 1.-The history or this concern
forms one OF the blacklist chapters in the financial
experience OF this country said Senator Edgar L
raclett today concerning the United states Ship
building Company At a hearing given before JUS
toe D. Cady Hcrrick. OF the Supreme Court on =
motion for change % venue from saratoga 10
New-York County. IN the action by Charles H.
KavanauRh OF Waterford against the Mercantile
Trust Company OF Hcw-York Alvin W. hrech,
Charles C. Deming and John !. McCook TO recoN er
$4,000 which he alleges to have been lost through
Investing 81 the stock and bonds Of the shpbuild-
ing company. Senator Bracket was contesting the
motion Tor a change of venue made by the de-
PENDANTS through their attorneys. Lewis Z. Carr.
OF this city and John 9. Milburn. OF New-1ork
City. Mr.. Carr made the argument in behalf or
the motion
The suit on which the proceedings were based
was Instituted by Kavanaugh some months ago
lie alleges that he induced invest SS6eee IN
the stocks and bonds OF the company through the
inducements offered in a prospectus which he de-
clares sent out by the Mercantile Trust Com
psny and the other defendants and which he fur
Their alleges contained false statements concerning
the company ana its financial condition and pros
poets. The securities for which he paid $4,000 he
alleges were actually worth only $1,000 lie sues
10 recover the difference
behalf OF the motion for a change OF venue
Mr.. Carr contended that New York County was the
proper place for trial. because all Of the wit
resses excepting only the plaintiff. and the docu-
rnents necessary for it. were in that city. He read
the names OF twelve witnesses who are residents
OF Ncw-Eork whom ii would be necessary 10 call
He read affidavit Of Mr.. Demng. one OF the
Defendants 81 which the latter named the several
witnesses residing in New-Tork City who would be
called. II was the purpose Of the defence 10 call
Lewis Nixon and some OF the officials OF the Trust
Company OF the Republic 10 show that the circular
sent out by that trust company and not by
the Mercantile Trust Company.
AN AFFIDAVIT FROM Mr. NIXON
a-eso ckp.f Tror NJ
Nixon that he could not testify that it the
Trust Company OF the Republic which sent out tho
prospectus. II was also alleged IN the moving
papers that Henry c. Hallenbeck. Henry Hallen-
beck. 3r- and other members Of the firm Of Wyn-
koop-Hauenbeck-Crawford Company, printers,
would be called TO prove that the circulars were
published at their printing house, on order Of the
Trust Company OF the Republic. Senator Bracket
read ef1davits from two OF these men that they
could nos that the circulars had been printed
at their establishment for the Trust Company Of
the Republic, at all. In al Senator Bracket
presented efldavits from six OF the twelve wit
nesses specified IN the moving papers. asserting
that they could not testify 70 some nor. in some
TO any OF the matters asserted in the papers
Three OF the remaining six witnesses, ne held, were
either defendants employees Of defendants, and
they could not be taken into consideration under
the rules OF practice. He presented affidavit
from Thomas c. Clark the tenth witness that he
willing TO so to Saratoga County TO testify
The two other witnesses We're General Fitzgerald,
who was president OF the Mercantile Trust Com
pany the time il is alleged the circular was sent
out. lie states in his affidavit THAI he entered into
no conspiracy such as is charged Senator Bracket
declared:
That is true undoubtedly. 1t may be conceded
that he did not conspire or enter into any agree
1nent He passive president at that time. and
has since been retired from the presidency. on.
10. II was the younger blood that was acting in
this matter"
Senator Bracket also held that the twelfth wit
ness was in position 10 give material testi-
lnony, adding:
Why. these eminent attorneys have been i'm i'm
witnesses they nave maintained were necessary for
testify to the things alleged three are either the oe
PENDANTS or employed by them. one takes an oath
testify. and he remaining two are President Fritz
gerald and Mr.. Young. There IS their case. ~
fendants claim printed the circulars for another
sadly imposed upon.
DENIES THERE WAS CONSPIRACY.
I Mr.. Carr in his argument said that the trust
company was an institution OF thirty years stand
ing and should be permitted vtndicate itself
before the people Of NeW-Gork City who had deal
ings with & during that period. He denied that
there was any conspiracy that the trust COM
pany or any OF its Officers responsible for the
circular that Mr.. kavanaugh HAD seen when be
company. He intimated that 1t would be shown
that the Trust Company OF the Republic was the
oh. yes. inierposod Senator Bracket. The
poor little trust company which il is sought TO
place the responsibility
Mr.. Carr said that his clients willing that
the trial should take place in WestchesteT. queens
or any other county adjacent TO New York II IL
were feared that the would be delayed II It
transferred 10 NeR-NOrk court. That, he
said, would meet the objection OF the complainant
that he would not get a speedy trial II the venue
We're changed 10 New-ToTk.
This showed Senator Bracket said, the weak
OF the grounds which the change was de-
sired he discussed the organization OF the ship
building company and the circular which had led
Mr.. Kavanaugh invest He read statements in
the circular which declared that the plants Of the
companies be absorbed worth over 10000 600.
whereas he held. they not worth $1,000
90. The circular alleged that the subsidiary COM
panies had orders on hand which aggregated 1885,
900 600 while the fact IS. he malntained, that the
orders did not amount 10 over 5000. 90 The cir
clllar printed the OF prominent men
who 20 be its directors. whereas only four Of
them ever elected to such Offices and this
circular printed s0d circulated declared the
Senator. before the cOrlDany organized At all "
AT the close OF the hearing Justice Herrfck said
he would reserve his decision. He said that II
he Denied the motion he would do without
prejudice TO the defendants to procure sffidavits
IN rebuttal OF the afidavts fled bv Senator Brack-
EFT He asked whether II he decided TO change the
venue. Nassau County would be acceptable. Sem
ator Bracket replied that he would not stipulate
His client would insist that The trial take place In
Saratoga County.
WARRANT FOR CLEVELAND RANKER