New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-05
SUIT FOR Il MILLION.
Calhoun Ashs for Damages IN Ship
building Bond Transaction.

A suit for 81. 900 900 damages has been brought
nv John c. Calhoun. Of this city. against the dt-
rectors Of the Commonwealth Trust Company,
formerly the Trust Company of the Republic;
the directors Of the United States Shipbuilding
Company. members Of the Sheldon syndicate.
and eight other persons described in the COM
plant as John Doe Richard Roe" etc. Mr..
Calhoun, in his complaint, after reciting that OF
the S16OOOOOO first mortgage bonds of the ship
building company. s.. 100000 were used for the
purchase OF properties OF the constituent COM
panies. 81 100000 reserved as treasury bonds
and about 81 100000 were underwritten in the
United States alleges that the remaining part
about 81 100000 had been attempted to be I'M
derwritten in France. but that the effort failed
These bonds he says, were held by the Trust
Company of the Republic, pursuant to an agree
ment between 1t and the defendants, John w
Young Lewis Nixon and others.
This agreement provided. the complaint con-
tinues. that "al the remainder Of said issue Of
S16OO0OOO OF bonds so issued as aforesaid were
and should remain pooled. and that no part
thereof should be sold for less than % per cent
OF their par value until said Trust Company Of
the Republic should have sold the S4250OO0 Of
bonds placed with II aforesaid
Between September - and October 10. 1902
IL is alleged, a contract made under which
the Trust Company OF the Republic agreed to
abroad 100000 OF the bonds. and also agreed
that oil the rest of the issue should remain
pooled and not disposed of at less than
90. and that Calhoun should receive for
his services the difference between 90 and
80 per cent of the par value of all the
bonds sold by him. with a bonus OF % per cent
each OF common and preferred stock Between
October Is and November 10. Mr.. Calhoun says
he procured 100000 OF bonds to be under
written by responsible banking houses in Eng
land, at the agreed price of 90 cents on the
dollar THE Trust Company of the Republic"
II is further alleged "for the purpose OF de-
frauding and cheating the PLAINTIFF falsely rep
resented 10 the plaintiff while he was out of
the United States and in England. that aid
bonds were still in it's possession and control
after the said defendant had parted with them
as hereinafter set forth"
The shipbuilding bonds placed with the Trust
Company Of the Republic, the complaint con-
tinues. including the 100000 under contract
to the plaintiffs. were transferred or procured
10 be transferred. to the Sheldon syndicate at a
price far below 90. the directors OF the trust
company and the shipbuilding company. in
violation OF their duties as directors and for
the purpose Of their own profit. wifully. wrong
fully and frauiulently" causing the trust COM
pany to turn over the bonds 70 the syndicate
Section XIV of the complaint says:
That the plaintiff has large and valuable
acquaintance among hnancers in America and
in England and elsewhere: that by reason of
the action of all the defendants above named
and each Of them. in withdrawing the bonds Of
the United States Shipbuilding Companv here
inhefore mentioned from the plaintin, and IN
putting IL out of the plaintiffs power TO deliver
said bonds to the various bankers and financial
institutions to which the plaintiff had agreed TO
deliver the same. the plaintiff suffered intense
humiliation and was greatly damaged In his
reputation among such financiers."
BY reason OF such alleged wrongful acts OF the
defendants. il Is alleged. the PLAINTIFF was de-
prived OF a profit OF SS25.CuO. which would have
accrued TO him by the performance of his con-
tract. and he demands Judgment against the
defendants and each of them for the sum OF
SI,OUU.Oo. besides the cost and disbursements
OF the action