The San Francisco call., 1909-09-05
ATTORNEYSAYS
OCEANIC SUIT
ISSP|TEWORk
]. D. SpreckeIs and Bros. COM
pany Spent Over S2,O00,oOO
to Keep Steamers Going
Action Looked Upon as Attempt
to Influence Public Opinion
Concerning Will Contest
ContLnued from Page IL

due and payable" The complaint says
hat although two installments have
remained unpaid. the trustee has made
40 attempt 10 enforce their payment
It is also charged that the Union
trust company has allowed the steam
ship company TO retain sll its property
rights. powers and earnings, although
these have been forfeited to the trustee
by reason Of the alleged defaults in
payment Of interest.
The complaint goes on TO say that
the bonds have greatly deprecated in
market value and that many have been
sold at less than 80 per cent of their
face value notwithstanding that the
trustee has on hand more than $4,000
Of the Oceanic funds, the allegation
continues A sum sufficient TO retire lS0
or more bonds at the selling market
price this has not been done It Is al
Ieged that since August Is, 1908, 30
bonds have been bought in for an
aggregate sum Of $15,59z-5O, or an
average price, including brokers' COM
missions. of S4S1-25.
BY using all of said funds" the COM
plant alleges. for the purchase OF
bonds at q selling market price during
II ST wear. Sdt0 trustee Ebulu anu HOhAA
have saved TO the Oceanic steamship
conpany a large amount of money
greatly in excess Of the 2 per cent per
annum which II pays for the use OF
said moneys.
AS to Insurance
II is also pointed out that the trust
agreement p provides that while the
bonds are outstanding the property Of
the company must be adequately IN
sured for not less than two-thirds OF its
value This Il is alleged. has not been
done il tthe case Of the vessels OF the
company.
The case OF the Australia is cited
This vessel was seized by the Japanese
for carrying contraband during the
Russo-Japa nese war II is stated that
the value Of this vessel was 100000
and that it was insured for $65,slo,
whereas il is alleged that II should
have been insured for at least sl55,-
23233 This alleged Inadequate insur-
ance IS charged to the neglect of the
trustee and IS alleged TO have caused
the company and the bond holders
great loss and damage.
The other vessels of the feet are
listed as follows: Sierra, value 1921
500. Insurance s42s.3I1-5o; adequate in
sss4.s77.65, insurance s42e,3l1.5o; ade-
ouate insurance s623,3ls- Ventura,
value s9l5.1ll.9s. insurance S42e,31l5oi
adequate insurance S610,044- Ala
media, value $696.563 insurance s254,-
SO: adequate insurance $464,375. Mari
posa, value s632.s0s.1s. insurance s2e4,-
$50. ADEQUATE insurance s421,9S9. OF
the ZeaIandia IL is alleged that its
value IA 1905 was S105,500 and that
the trustee allowed the steamship
company TO sell the c. J.. Dimond for
$4,000. "a price grossly disproportion-
ate to its value"
Attack ]. ID. SpreckeIs
The complaint then goes on to at
tack the relations between John d.
Spreckels and the Union trust company.
After stating that he is president of
the steamship company and owns 1896
shares of its stock, the complaint
charges:
plaintiffs are informed and believe
and on such information and belief
aver that he is now and for several
years last past has been the holder Of
large number of shares of the capital
stock Of said defendant, the Union
trust company. and is now a member
Of the board Of directors Of said trus-
tee"
II IS also alleged that 'in the execu-
ton Of the trust created by said mort
gage and trust agreement, said de-
fendant, the Union trust company, has
been controlled absolutely by said John
y. Spreckels and has acted at his be-
hest and under his instructions in all
matters relating to said trust and the
execution thereof"
Attention is next directed to the re-
lations between the Oceanic steamship
company and the John D. Spreckels
Brothers & Co. IL is alleged that
since 1900 the valuable capital stock of
fxakaf II
ened BY a series of assessments by rea-
son OF which the number of share hold
ers was reduced TO the following
John W. Bourdette. 40 shares; Charles
r. Dugan (trustee). . shares; w. u. h
Gibson. 100 shares; Stanley Pedder.
share: John D. Spreckels Brothers
e. Co. 1873 shares; A. B. Spreck-
els. 1854 shares; John ID. Spreckels,
4 sas shares: John D. Spreckels Jr.,
100 shares: r. s. Samuels. 100 shares;
ii. w Thomas. 100 shares; L. b.
Thomas. / share.
II is stated that Bourdette is attorney
for J. ID. Spreckels Brothers & Co.
and that ali the rest. with the excep-
ton Of Stanley Pedder, are directors
or employees of that concern; also that
the total number of shares held by
these is 2e.353. of which 25,647 are in
the treasury of the steamship company.
III s
the directorate of the steamship com
nanv forms a majority OF the direc-
forate Of the J. d. Spreckels Brothers
e. CO.
The complaint also says that the
steamship company pays the other
company 81, 600 month for acting as
its general agent; that this company
also acts as purchasing agent for the
steamship company, and has sold it a
large amount of fuel and other COM
modities. deriving large profits.
Promissory Notes
II is alleged further that there were
outstanding in May, 1907. promissory
notes of the Oceanic payable to J. ID
Spreckels Brothers e. CO. 10 the amount
of 81. 100000 and a further indebted
ness OF $4,000. BY the levy1ng OF
assessments and other moneys this in
debtedness. ii said said, was reduced
in Nav. 1909 TO 81 ,06U, 125. On fnforma-
lion and belief il is averred that this
indebtedness "is largely in excess OF
the amount actually due and payable
still another charge is that the
steamships Ventura Sierra and Sonoma
exceeding in value $2.771 600. have beer
for more than a year and a half rid
ing at anchor in the bay at cost OF
$40 600 annually. The plaintiffs aver
that these vessels could have been prof
f-.bl., .hartered hut that no affempi