The San Francisco call., 1909-09-05
D|RTYCASE
TOBOlSTER
THEMSELVES
-ADoLPH sPRECKELS
R. and c. A. Spreckels Sue to
Remove Union Trust Com.
pany as Oceanic Trustee
Charges John D. and AdoIpE
SpreckeIs Have Conspiracy
to Depreciate Bonds
Allegations Regarding Misman-
agement of Steamship COM
pany Shown to Be False
The Elder Claus SpreckelS Him.
The Elder Claus Spreckels Him.
self Twice Signed Waivers
of Default on Interest

A SUIT which the defendants do
IA not hesitate to characterize as
4 n "A hlibustering fight based on
charges which are stamped as
only wind''-"a dirty case" in the
words of Adolph Spreckels-was COM
menced yesterday by Rudolph and
claus Augustus Spreckels. executors of
the Claus Spreckels estate. for the pur-
pose Of having the Union trust COM
pany removed as trustee of the Oceanic
steamship company and another trustee
appointed by the superior court.
Following as it does closely on the
heels of the action brought by John D..
and Adolph Spreckels 10 test the va
lidity Of the trust clause OF the will of
their father. Claus Spreckels. the suit
which was filed yesterday is regarded
by John D. Spreckels and Adolph
Spreckels. against whom il is directed.
as an effort on the part Of Rudolph
and Claus a. Spreckels TO counteract
the effect of.the attack upon the sugar
magnate's Will
They are simply trying to bolster up
their position in the viii case" said
Adolph Spreckels yesterday. 1T GER
tsinly looks like a matter OF spite
said Attorney A. F. Morrison, due TO
the resentment of Rudolph and Claus
Augustus Spreckels because John ID.
and Adolph Spreckels have seen fit TO
question the trust clause of their
fathers will"
One of the numerous charges con-
SprecIeIs and AdOIph spreckeIs are
seeking, with the aid of the Union
trust company, 10 depreciate the vaIue
of the outstanding bonds of the Oceanic
steamship company by waving default
in the payment of the Interest on the
bonds. This allegation is met by the
statement of II. =. SamueIs. manager of
the John ID. SpreckeIs a Bros. com
pany, that at the time of the first de-
fault of interest in june. 1907, Claus
SpreckeIs himself signed the waiver
after Rudolph had refused and Claus
Augustus had sent word TO John ID.
SpreckeIs that 'frOm now on il is war
TO the knife between him and me-
NoIuminOus Complaint
The complaint filed yesterday by Ru-
doIph and Claus A. ,SpreckeIs as execu-
tors Of the viii of Claus Spreckels and
directed against the Onion trust com
psny and the Oceanic steamship COM
pany. is document of 2s typewriter
pages drawn by Attorneys sullivan &
sullivan & Roche. It was assigned by
Presiding Judge Cabaniss to department
Of the superior court. over which
Judge Murasky presides
The complaint alleges that at a meet
ing Of the stock holders of the Oceanic
steamship company held June ?. 1899
= borded Indebtedness of $4,000. 600 was
autho -ized and that thereafter the di-
rectors of the company issued $500
bonds OF the par value of $1,000 and
bearing interest at the rate of 5 per
cent per annum. The directors also. in
pursuance Of the viii of the share
holders, executed a first mortgage and
trust agreement to the Union trust
company. This agreement covered all
the property Of the Oceanic steamship
company, including the steamships
Australia, Alameda. AIariposa, zea-
landia and the sailing vessels W. Fl.
Dimond. William G. Irwin. consuelo
and John ID. spreckels.
In 1900 Claus spreckels. the complaint
alleges, purchased eOs of these bonds
and held them until his death. They
are now in the possession of the execu-
tors.
Regarding Interest
It is further alleged that the oceanic
steamship company has not paid the in
terest on these e0s bonds. which was due
January /, 1909. and July ], 1903, and
that the Union trust company has
neglected its duty as such trustee and
has committed negligent. wflIful and in
tentional breaches OF the said trust to
the great injury and prejudice of the
holder of said bonds"
In support Of this charge il is al
legged that the bonds contain pro-
vision that il default shall be made in
the payment of interest on the bonds.
and If. after demand for the payment
has been made in writing, 1t shall not
be made within six months. .the whole
amount OF the principal shall become
Continued on Page "a, Column