New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-27
WANTS HER MONEY BACK
Miss Baldwin. Frightened by
QuaIey Arrest, Brings Suit.
HAD SOME MAGNESlA STOCK
Heads of Other Corporations IN
Which She Invested Saw
Securities Are Good

Miss Lila NJ Baldwin of No go West
/ 92d street, IS another investor who wants
back the money she put into the Magnesia
Asbestos company Incidentally. she eeuld
/ like also TO realize on her investments in
the American Finance and Securities Com,
! pany, the New Jersey Steel Comnanv the
Lapeer Gas and Electric Company and the
Guanajuato Reduction and Mines Compapv
4 But before Holmes Jones. of No. IS Lib
erty street. Miss Baldwin-s lawyer. can draw
( uP the complaint IN her suit TO recover
Sl2 40, the amount of her investment in the
securities Of these concerns. a preliminary
examination has been found necessary. Such
an examination was set for August 16. and
! The American Finance and Securities Com
+ Pany. the New Jersey Steel COMPANY.
/ George ". Meacham. Countess CASTOR
/ d Arschof, the. Maenesis- Asbestos COMPANY
/ and John Doe and Richard Row were
named as defendants
Justice HendriCk or the af1idaHits of Miss
Baldwin, Mr. Jones and Richard Trirnble,
secretary Of the United States Steel Cor
+ pcration. ordered the American Finance
and Securities Company 10 appear through
Edward B. Kurt, president; Charles e
Ellis. secretary; Clement \ Griscom. II.
George D Bouton and Leon o. Bailey, di-
/ rectors- The New Jersey Steel Company
he ordered 10 appear through Messrs Boll-
ton, kuTtZ and Bailey. and the Magnesia-
Asbestos Company through John A Qualey
and Harvey Wiley Cerbett, against whom
Mrs William T. Bull has made charges.
John r Mcintyre, for the Magnesia-Asbes-
tos Company, got stay until last Monday.
and on Monday the exaulina ton went cyer a
week
Before Mrs. Bulls famous complaint be-
came public. and even before she obtained
the warrants for the arrest of Qualev and
Corbett in an effort to have them taken g.
Rhode Island extradition proceedings,
Miss Baldwin discovered, she says, that the
Observation-Disclosures Company was not a
money earning. dividend paying concern. !
This discovery was made on July u, and
Qualey and Corbett were arrested on
July -.
ETnboldened by Mrs. Bulls example Miss
Baldwin now asserts "on information and
belief that the Magnesia Asbestos Com
Ranx is a bubble corporation conceived in
fraud. having acquired merely q nominal
equity in a dilapidated factory at Newark,
nortgaged for its full value, and that it
never acquired d legal right 10 transact
business in New Jersey"
What She Sold and Got
But Miss Baldwin did not deal with Qua
ley and CoTbett personally. The man she
holds responsible for her investments is
George " Meacham, a broker, of No. )
Nassau street Il was Mr.. MeachaIns rep
RESERVATIONS, she charges, which caused
her 10 dispose Of securities valued at sl9,72o,
which We're paving her from 4 to ia per
cent interest. and invest the money in the
securities Of the companies she is suing
These securities. she says, Meacham told
her. would pay her 6 and per cent.
In December. 1909, the plaintiff says. she
surrendered 20 Neacham for sale eight
bonds of the Provfdent Security Company,
guaranteed by the New York. New Haven
8 Hartford Railroad Company and worth
al the time ST. 72o: two bonds of the Lacka- /
wanna Steel Company, worth $1,000 80
shares Of the Pennsylvania Railroad Com |
pay worth $500. and four bonds of the |
rlited states Steel Corporation, worth /
ZOO and that S1a. 100 was the total amount !
realized on the sale.
OF this money. sI9,470, she says. was put
into the following securities: Five so /
called 6 per cent bonds of the American /
Finance and Securities Company. valued .
al 5000. which carried with them a /
bonus of fifty shares Of the CAPT
tai stock of the company: five per /
cent bonds of the New Jersey Steel I
Companv with the same bonus: sixty !
shares Of the preferred stock of the New /
Jersey Steel Company. with q bonus Of
thirty shares Of the common stock of the /
company. ten shares of the preferred stock /
Of the Nagnesia- Asbestos Company, valued /
a $40. with bonus Of ten shares Of COM /
mon stock: four bonds of the Lapeer Gas /
and Electric COMPANY. valued a $3.50, and /
one bond Of the Guiana juato Reduction and /
Mines COMPANY valued at $50, win a .
bonus of five shares of the company's COM |.
non stock
In tle case OF each company in which .
she invested. Miss Baldwin declares, .
zIeachan represented that the corporation
was d responsible and solvent concern. /
she SAYS lie told her that the Magnesia- .
Asbestos Company was operating plant
IL Newark and another near Boston. that
SIS preferred stock was on a dividend pay
ing basis. and that the holders of this I.
STOCK had received dividends from it. This /
representation she compares with her own /
statement tnat the Observation-Disclosures /
CompaHy never was solvent and never I
was on d paying basis
Saws Bonds Are Not Bonds.
MeacBam also told her, Miss Baldwin /
continues. that the American Finance and /
Securities Company had assets of S7,I49,- /
425. which she SAYS vas not true. She /
declares that its first mortgage bonds had (
M, market value other than that produced /
nv private sa les and were worth only 10 I
ner cent Of the alleged market value quoted
Ia her bv MeaChan and that the so-called /
bonds. amounting to s. $4,000 issued by /
the concern. are not bonds in the common /
Is accepted meaning of the word, but /
..cleverly devised and cFaftily drawn in /
struments having coupons thereon simu- |
Iating those commonly found on bonds !
and having no date OF maturity being /
mere certificates Of ownership
IL 1903. 500 and 1910. according 10 Miss
Baldwin the American Finance and Secu- |
rites Company had been acting as the |
fiscal agent broker or sales agent of the /
New Jersey Steel Company Meacham, /
she says, is the executive special, SO 1
called" Of the latter company, and with /
its knowledge and consent has been en- |
ployed by it to dispose of its bonds and /
stocks.
She alleges that Meacham told her the |
steel company was following the example /
of the United States Steel Corporation in |
giving its common stock az bonus 10 I'm
yestors in its preferred stock This rep |
resenfati0n Miss Baldwin seeks to refure
through the affidavit of the secretary Of