The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-07-25
Alleged That He Sought
to Ruin Broker
age Firm.
SUIT FOR $3.50, 900
HAS BEEN FILED
An Echo of Sensational Slump in
Hooking Coal and Iron, in
Which Alleged Crooked Me-
thods of Daring Operator
Are Given to the
Public.

Public.
Nsgp NspesY1s Yerk to als Ths g4efHpisyatshH g4Henyy Has.
| kins and Henry S. Leverich. partners
| rop. Haslsins & Company, are suing
| James r. Keene and the members OF
| the firm of Pepper & Sternbach for
| s750,Oo0 They allege that Keene and
| the brokerage firm conspired to pur
! them out of business at the time OF
| the Hooking Coal and Iron slump last
| January, with loss in collateral, mar
gins, business and good name aEEre-
eating the sum demanded.
The suit is distinct from that already
Instituted by Henry D. Hotchkiss, trus-
tee in bankruptcy for the members OF
Lathrop. Haskins &; Company against
James r Keene for the recovery Of
profits which he is alleged to have
made out OF short sales In the falling
market. A lawyer interested in tho
case said to-day that the evidence
upon which the suit is based was
cleaned in the many hearings conduct
ed during the spring before Stanley.
w. Dexter, referee in bankruptcy, save
in the single particular of Mr. Has.
kins's own knowledge of the perform
ances OF Keene and Pepper & Stern
+.
to tell what he knows In the course OF
ehe suit.
The Defendants.
The summons and complaint wers
hled in the county clerks Office last
Saturday after the service OF the pa
pers on the defendants. Besides Mr..
Keene they are Edward Pepper, Arthur
| Pepper. Sidney W. Sternbach and 10.
seph Loewi, partners in the firm OF
| Pepper s, Sternbach. and Henry D.
/ Hotchkiss, as trustee in bankruptcy
| of Henry S Haskins. Henry S. Leva-
| rich and Fannie G. Lathrop, memb ers
| of the firm of Lathrop. Haskins &
/ Company.
IT is explained that Mr.. Hotchkiss is
| OF his refusal to bring suit in his
capacity of trustee. on the ground
| that 1t was the two active partners
| who were properly the plaintiffs, they
and not he having "a complete and
perfect cause for action" But Mr..
Hotchkiss's position as defendant is
declared to be wholly formal
| Leverich and Haski1s We're discharg-,
ed in bankruptcy last Wednesday from,
liability for the firm debts of Lathrop.
Haskins & Co. Abrarn I. Elkus and
William S. Mcclure are attorneys for
the plaintiffs in the damage suit now
brought
The summons and complaint recitesi
the agreements forming the Hooking
pool. of which Keene was manager.
dating from March. 1903. An agree
ment was entered into at that time
between the plaintiffs. the defendants,
j. M. Fske & Co, Neuberger. Hender-s
son & Loeb. Jewett Brothers. Day.
Adams & Co., Markoe & Morrison. A. J. I
Elias & Co.. Rollins Co.. Post & Flags
and Orvis Bros. & Co., THAT they
the purchase of at least 10000 shares
of the common stock OF the Columbus
and Hooking Coal and Iron Company,ks
or so much thereof as the said James
r. Keene should deem advisable"
This agreement. which was to hold q
until September 1. 1909. was renewed q
at some time prior to it's expIration8
between all the parties except Post & =
Flagg and Orvis Bros. & Co., whoE.
withdrew The biggest responsibilities
under the agreement lay with Lathrop.4l
Haskins Co.. who We're down for "
5000 shares. or at the rate of one#,
to four of such shares as should bel
bought. Keene remained manager of
the pool. and 1t was agreed that he}
shouldn't buy Hooking stock for hiss
own Individual account. His interests
in the pool was 5000 shares. fsS
Separate Agreement Made.
1t Is further declared In the summonslH
and complaint that separate agree-sg
ment was made about the middle off,
] July. 19Os between Leverich, Haskins.
Keene Tucker, Anthony & Co., Att
wood, Violette & Co., Van Schaick 81
Co, Wagner. Dickerson & Co. Bishops
Laimbeer & CO., and J, NJ. Ftske s. Co. .ss
This pool was down for 10000 shares ofs5
Hooking stock. and Lathrop. Haskina &
& Co. again had the largest share. ".
They stood for 1000 shares KeeneEg
was down for 1000, and j. NJ. Fiske s. q;
Co. were responsible for the sameas
amount, According to this agreement. M
also. 1t Is stated. Keene wasn't to buyS5i
Hooking stock for his own account. S
Nevertheless. 1t is alleged, keene ser,
out to do that very thing. with his9
brokers. Pepper s. Stern bach. 1t Is de- Il.
clared on information and belief that
they ''entered into conspiracy tdss
depress and destroy the market price OFF,
said stock and to ruin the plaintlnssHs
financially, and to destroy their saida&
business and the good viii thereof, andgg2s
to render the plaintiffs insolvent andS
no longer able to transact business assSfsI
stockbrokers or to enjoy the privtlegea8s3
of the said New York Stock Exchanging ssS
1t Is declared that the way Keena$S
and Pepper & Sternbach were to ac NH
complish the wreckins of LatErop.@E .@E
Haskins 4 Co, was ito make sales otaaS
a great nuInDer OF S1hreS OF tAe StcctGS$sE
of the said Columbus and Hooking CoalEffS
and Iron Company for his own per-
sonal and individual account and a tss8
the same time falsely and fraudulentlye
10 state and pretend that he con-as
tinued to act faithfully and consai -
entiously as trustee, manager andSSg
agent. OF the said Joint ventures. and
as such to give out orders for the pur vii
chase OF said stock TO an amount that
naa sdp dpa n
ants exceeded the buying capacity oks y
the said several members of said Joint
ventures and thair joint buying ca r
pacity." MA
Greater Power To Sell. ssssi
II Is also set forth in theAconplatnSSas
that Keene and his brokers had greate Ssss5:
power to sell than the marnbeys OF tti@ III