New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-25
BANKRUPT BY CONSPIRACY
Charge of PO7cer Company That
Leads to inquiry.

A business conflict between rival corporations
led to the beginning of a John Doe" inquiry
before Magistrate Finn at the Tonbs police
court yesterday. The corporations named In the
proceedings are the Hudson River Water Power
Company. of Glens Falls y. Y; the National
Contracting Company. said to have offices at
No. ia Liberty-st.. this city; the G. w. Hunt
Company, of New Brighton. Staten Island; the
Hudson River Electric Power Company. of Gleus
Falls, n Y, and the Glens Falls Gas and EIec-
trio Company
The inquiry was begun by District Attorney
Jerome at the urgent request of the Hudson
River Water Power Company. which alleges
conspiracy by means OF civil suits to force it
into involuntary bankruptcy. The papers in the
case set forth that the petition in bankruptcy
was filed in the United States Court for the
Northern District Of New-York; the National
Contracting Company, said TO be a New-York
corporation; the c. W. Hunt Company. through
George S Humphrey, controller; Joseph l..
Ashmead, and Joseph L. Curran of New York
appearing with others as complaining creditors
1t is alleged that on April the water power
company gave a mortgage to the Knicker-
booker Trust Company, of this city as a guaran-
tor of the bonds of the Hudson River Electric
Company. of Glens Falls. in the sum of $1,000
600. On April IL. the papers saw the water
power company gave blanket mortgage of
100000. covering all its property in satisfac-
ton of a loan made by the Hudson River Elec-
trio Company. Both mortgages were entered
into prior to the entering of judgment in favor
of the National Contracting Company. Imme-
diatey after making the 100000 mortgage
foreclosure proceedings were instituted and
Charles Fl. Peddrck appointed receiver on
motion of the Hudson River Electric Power
Company.
Allegation is made that some persons con-
spired to force the water power company into
bankruptcy by corrupty obtaining assignments
of small claims against It, 1t Is stated that a
corporation can be forced into bankruptcy with
any attempt at legality, only when there are
more than twelve creditors, and three or more
creditors must join in the petition
The water power company admits owing the
Hunt company 5000. but alleges that last month
il sent a certified check for the full amount of
the Indebtedness to the Hunt company. which
returned Charles HOvey. fruit dealer of
Glens Falls. swears that the Hudson River
Water Power Company transmitted his goods,
and he indebted to the water power COM
pany TO the extent of $40 "a. There was dis
pute, HoVey says, about this bill because Of a
bill for electric lighting at the home of Hovey's
father, and while this bill being adjusted
Walter Chambers, lawyer, of Glens Falls. Of
fered him 500 for his claim. HoVey says he
fused this offer and likewise offer of $780,
but finally accepted offer of $3.50, selling his
claim.
J. Theophie Baudett says that on April 20
E. A. Wakemann, superintendent of the Glens
Falls Gas and Electric Company negotiated
with him to assign his claim against the Hudson
River Water Power Company to the Glens Falls
Gas and Electric Company. Baudett says he
assigned his claim in blank to the Glens Falls
Gas and Electric Company, as he thought, but
ii appears from the complaint papers that he
assigned his claim to Joseph L. Ashmead.