New-York tribune., 1910-08-25
JOHN HAYS HAMMOND
SUED BY STOCK AGENT
Alleged TO Be Behind Big Gun
To Be Sold to Government
for S25,OOO,OOO.
PROMOTERS PRISON RECORD
Mining Expert Says He Once Be-
friended the Plaintiff-Re-
fuses to Consider Action
Seriously.

the promoter is about to be unfolded in
a suit brought before Justice Brady, In
the Supreme Court, yesterday, in which
John Hays Hammond and his SON. Har-
ris. are named as defendants
The promoter is Henry Clay Russell
Wade, a co-defendant. who has recently
William r. Rose, a young man whom
Mr. Hammond said last night he had
helped out on various occasions
The promotion is the Auto Machine
Gun Company. a Delaware corporation,
which controls the manufacture of the
| "auto machine gum something which
Wade's letters to prospective stock
holders intimate Mr.. Hammond expects
to sell to the government for So5O0O,
600.
The Hammonds, it is said. bought for
$4,000 stock in the corporation of the
par value of 100000, $4,000 treasury
seek and $4,000 more that Wade and
one of his associates turned over. This
associate is Arthur NJ. Rose, brother of
the plaintiff, and a former Pittsburg pro-
moter whom Wade took into the COM
pany on the representation that he could
interest Mr.. Hammond in the gun. He
is also named as a defendant by his
brother
The plaintiff seeks to recover $4,000
In his complaint. filed by his lawyers,
Campbell & Madden, of No. 203 Broad
uay, he declares that he made a contract
with Wade to sell 1,600 shares of stock,
and that Wade agreed to let any of his
prospective customers see demonstra-
ton of the gun.
Demonstration Countern,anded.
After interesting a number of people.
who said they would buy stock if the
demonstration was satisfactory, Rose
saws. a demonstration was arranged for
June % at the companys plant at
Stapleton. Staten Island, and later
countermanded by Wade. This action
was taken by Wade, according to Rose.
because he had heard that Rose had in
vited mem bers of the press to attend
the demonstration. and Mr.. Hammond
had objected to the publicity at the time
as likely to interfere with his con-
ter,plated negotiations with the govern
nent. BY calling off the demonstration
the plaintiff asserts, the sale OF stock
was prevented. causing him loss of
5000 in profits.
The letters written by Wade to AID
his agents in the sale of the stock DO
not name Mr Hammond, but they ex-
nloit his alleged connection with the
ooronauv as follows:
THE gentleman who purchased our
treasury stock is very wealthy, of very
high standing. and closely associated
with President Taft, and his connec-
tions with all the high government Off
cials wilI enable him to get from this
government the highest possible price
for the invention. He Informed me one
dsv not long ago in conversation that
he didn't consider from SO. 100000 TO
go on0 900 exorbitant for the invention
If il will do all we represent it will
Mr. Hammond was reached last night
AZ his summer home in Gloucester,
Mass He ridiculed the whole affair.
John HAYS Hammond Talks.
I NAV know this man Wade. though
I cant recall him for the moment" said
he Il certainly can't remember any
such conversation with him on the sub
iect Of his gun I never heard Of Rose
in connection with the gun and know
very little about the gun.
"Of course that talk of selling it to the
government for s250oooo0 is all poppy
cock. I haven't spoken word about
the gun to anyone connected with the
government or any one else.
In fact I don't know that I have a
dollar invested in the thing Ny son is
interested In it-that is. he is interested
in some gun which he considers may
reyolutionize v-arfare-and he may have
let me in for little. though I doubt it.
you know how such investments are
made. He has been conducting some
tests in connection with the gun, but I
don't know the result of them. L never
even saw the gun.
This chap Billy Rose is a young fell
,c,r whom 7 have helped out on various
occasions. but I didn't know he was in
anv way connected with the gun in which
nv son is interested. I can't take this
suit Of his seriously
The gun in question is the Invention
of Frederick Bangerter who was super
iptendent of the water meter plant
owned by william H. Marsh in Brook
lyn. Bangerter worked on the invention
for several years at Mr.. Marsh's factory.
hacked by Mr. Marsh In May, 1908,
Mr. Marsh was bitten by a pet bulldog
and died from hydrophobia. Bangerter
then looked about for some one else to
aid him in developing his invention. and
ran across Wade, who took it up.