New-York tribune., 1909-12-16
GOVERNOR REPORTS
IN OLD REFERENCE.
Su't Begun an I896-COmt
Praises Findings.

Justice DoNling. Of the Supreme Court.
confirmed yesterday the report OF Governor
hughes as referee. in a suit brought in
IN" by Francis q. Kenneth against George
Is. hopkins and Harry l.. Terry for an ac-
counting. The PLAINTIFF and defendants
made exceptions to the report. but Justice
bowling said he found no merit in any OF
the exceptions. and added:
The report OF the referee has admirably
tpitomized the facts OF this seemingly in
terminable litigation. and the report is full
and complete
Governor Hughes was the fourth referee
IN the case. being appointed in 1893 on the
death OF General Wagar Swayne But he
was compelled to ask several long adjourn
ments on account OF the gas and insurance
Investigations. which he conducted He
held the first hearing on September q. 1913
Governor Hughes filed his report last De-
cember, stating that he had held ninety
TOUR hearings and spent four hundred hours
on the case. The compensation for such
services ranges from SO to $40 an hour
Besides the four references held in the
case there have been five appeals TO the
Appellate Division and one TO the Court OF
appeals. II is expected that another appeal
VIII be taken from the report AS In the
been successful all through with the excep-
uon or an incidental question to the Appel
late Division
Prior TO August. 1890 Kennett. the plain
tin. and Hopkins. one of the defendants.
we're members Of the stock and grain bro
kerage business OF Jones. Kennett & Hop
kins' Of New York and Chicago In that
year the firm was dissolved and the bust
ness continued as KennetJ. Hopkins & Co
until 1886. when that firm also was dis
solved. The contention has been made from
the beginning that when the first firm was
dissolved two new ones were formed. one
In New York and one In Chicago. The
business Of both was under one manage
ment.
In his suit kennett. who lived IN Chicago.
alleged that Terry. another defendant who
was member Of the New York Stock Ex-
change. was 2 partner Of the New York
firm in the profits and losses alike. He de-
clared that. because Of the alleged loose
and fraudulent management by Hopkins
there were large and unnecessary losses in
the New York business Rennett alleged
also that both defendants drew large
amounts Of money on fraudulent state
ments- He claimed all the assets that re-
mained in New York. one OF these vas the
Stock Exchange seat. Hopkins and Terry
denied the allegations. They said the firm
owed them s27l.O0O
A receiver was appointed for the New
York concern. He demanded s1s600O worth
OF stocks from the defendants, who refused
20 give them. saying they had lien for
s27l.Ooo. Then Lewis l. Delaheid was ap-
pointed the first referee, After taking
eco pages Of testimony he reported that the
defnndanfs u-ara apfffled 70 sq25 0s0
Then an action for an accounting came
up for trial Justice Russell decided that
Terry was not a party TO the losses and
appointed Charles Hazen Russell as ref
cree 10 take the accounting. After taking
1900 pages OF testimony Mr.. Russell de-
cided that the defendants should have
,272 056. General Swayne died before sub
hitting his report as referee on the final
settlement
Governor hughes then became the ref
cree. He finds that the plaintiff is charge
able with the suspense account. which the
New York court ordered Kennett not 10
sell in Chicago. but which order he dis
obeyed. The actual value was sS5 000 more
than the accounts brought al auction lie
finds that this one transaction the
plaintiff owes the defendants 7ss5. The
entire amount due the defendants. the
Governor reports. Is Ss3.2sl. The plaintiff
moved before Justice Dovling TO upset the
entire report. while the defendants made
other objections.
Herbert C. Iakin. or counsel for the
defendants. said in his brief:
This case ~ a striking Illustration OF
the laws delays as permitted or caused 10
be practsed in New York"
He said II another part:
- 81
forgiving We think Governor Hughes has
been generous with our money and forsiv-
ing at our expense