The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-25
BARBER SUBS ASPHALT TRUST
HINTS mO,BtW ron IIHEI -IOOIs
RUF HITH WWh
Prsrs,s see,es 1nsp iiIm FrstN Istsibsv'y
street ~ CsV'laaa, a'see, eeVryhw,sse
-M ~ 0euera, tspsSlt TSHs'ees
Jstaed q. Hetenaea,s lsV . Netety.

A fRlly faceI lfislman In nBe clothes
made y aoud run from tho entfancs ~ ne
idl~fty sltapt "a tho Pennsylvania Hallroad
ferry on saturday IN HE desire ~ eclipaa
all pAlstIns records ha heat hia way through
tho thFons ~ busy pedestrians without ~
much ~ by your leave In HE lmmedlalo
wake VIA n slim young man with q bunch
~ documents In his haul, Despite tho
handicap u many barriers In tho form ~
busting wayfarers, the young man never
Lost sight ot hia quarry until the ferry sheds
we're reached. The other nOsad him out
by a slight margin at the door sill.
There remarked the young "a with
n slight relief. you lose" lie then thrust
the papers into the hands 81 ths other, CIV
ing a smile for good measure, and departed
in peace. His victim gave one glance al the
papers, jammed them into his pocket and
went ON board the ferrybost,
The first walking gentleman In this drama
was John NJ Mack, president Of the Cen
eral Asphalt Company. The other was a
process server from the Office Of Niles 4
johnson, lawyers. Of II Wall street.
The papers in the case were for personal
service in an action for Sl0o. 900 damages
brought in the Supreme Court Of New York
by Ami Lorenzo Barber. former head Of
the asphalt trust. since Mr.. Barber quit
az he alleges. he has been made the subject
OF attacks by Mack and others in print and
out OF it. Every business reverse which
affects the trust he declares. IL blamed on
that rhan Barber"
On May is Of this year over his name
and attached to the annual report of the
Genera Asphalt Company, Mack, it is
alleged, charged Barber with having mis-
appropriat ed 1887 $50 in the promotion Of
the New Trinidad Lake Asphalt Company
Limited. in 1897. Barber declares that this
statement Is maliciously libellous and false
and Is int tended to hold him up to igno-
miny and contempt. He enters into
no explanation of his conduct, but leaves
the way open to the defendent to make
good II he can. Mr.. Barber further de-
clares hat in this annual report Mack
and his associates charge Barber with
having secretly sold his asphalt stocks and
bonds in 1901. while chairman Of the National
Asphalt Company. and that during the
receivership, while still nominally chair
man, he undertook to develop arrival asphalt
company in Mexico; that Mr., Barber en-
tered into a conspiracy with President
Castro and others to rob the New York
and Bermudez Company, a subsidiary COM
pany of the General Asphalt Company,
of its property in Venezuela; that Barber
was In possession Of the property OF the
New York and Bermudez Company and
had made overtures to the General Asphalt
Company for the sale to II OF "its W
property" Bermudez Lake, which was
confiscated by the Venezuelan Govern
ment becaus re Of the trust g aid TO the Matos
revolutionists four years ago.
All Of these charges Mr.. Barber declares
are designed to hold him up to public scorn,
contempt and ridicule.
A unique feature of the suit Is that the
voting trustees Of the General Asphalt
Company are made codefendants in the
action. These men are prominent in
financial affairs in New York. Philadelphia
and Boston. Their alleged responsibility in
the matter is derived from the fact that all
the stock of the General Asphalt Com
pany, except the directors qualifying
shares, is deposited under a voting trust
agreement with these voting trustees.
The plaintiff 3 lawyers hold that the trustees
are responsible for the acts Of men whom
they choose to manage the affairs OF the
company So these are the defendants
In Mr.. Barber's action:
John NJ. Mack, Avery D. Andrews, Arthur
W. Sewall, Clyde Brown, j. Lewis Rake,
Harry r. Wardell. Henry Tatnall, William
F. Harrity, Rudolph Ellis, Alvin w. Krech
and George r. Turnbull.
The action by Mr.. Barber will probably
bring to light much of the history OF the
disintegration, reorganization and re-
juvenation of the asphalt trust.
After the retirement Of Assistant Secre-
tary OF State Loomis and of Herbert w.
Bowen, United States Minister to Venezuela,
Judge William j. Calhoun of Chicago was
sent to Venezuela as special commissions
Of President Roosevelt to inquire into
the whole case.
Judge Calhoun spent several months
in Venezuela and reported at length to the
President. That report has never been
made public. Barberis suit against Mack
may disclose some of the information
gathered by Judge Calhoun. A. l.. Barber
is now president Of the A. l.. Barber Asphalt
Company, which supplies the paving COM
panies with natural asphalt. The annua
report of the General Asphalt Company
for the year Just closed, which is made the
DdSlS Vi tIle DhI x SUI 800,
a loss in paving of 1873 SIS as compared with
the year preceding. This is all blamed on
Mr.. Barber.
William W. Niles. Of Barber's counsel.
said over the telephone from Warden
clyffe, l.. l., last night that the suit will
involve an entirely new proposition of
law, the extent to which directors or trustees
Of a corporation are responsible for the
acts Of subordinates who hold their proxies
and are authorized to vote their stock.
THAT they are fully responsible is the
ground on which Mr.. Barber's suit against
the directors is based, said MIR. Niles.
while none Of the trustees named in the
suit attended the meeting in Trenton when
the annual report, containing the charges
against Mr.. Bar Der, was adopted, we hold
they are individually responsible for the
acts OF the men who held their proxies,
mir. Barber was in Europe when the
annual report was sent to the stockholders
and did not return until ten days ago. As
soon as he read it and saw that he was
charged with a crime he ordered us to bring
suit at once. He wanted such urgent
action that we served notice of suit and
secured summonses for the directors of
the General Asphalt Company before we
drew up the complaint. The complaint
will be filed within the twenty days time