Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-03-26
RECEIVER FOR n. ].
CONCERN IN CUBA
MADE PERMANENT
ChaunCey G. Parker Put in
Complete Charge of Jucaro
and Moron Co.
PECULIAR FINANCING
DISCLOSED AT HEARING
Atlanta Building Firm, That
Holds Bonds, Brings Suit
to Collect Interest.

Alleged ~high-handeds stock juggling
on the part of some of the directors
and officers of the Trust Company of
Cuba, a Havana concern, with the in
t~ention, SO it Is claimed, to swindle
the Pratt Engineering Machine
Company, of Atlanta, Ga, out Of $780,
900 worth of bonds, received a severe
setback yesterday, when Vice-Chancel-
lor Howell made permanent the ap-
pointment of Chauncey G. Parker as
receiver of the Jucaro and Moron Sugar
and Land Company, a New Jersey cor
poration operating immense sugar
plantations in the Province of Moron,
Cuba.
According to the opinion of the court,
the company has stripped itself of all
it's property, has ceased to transact the
business for which it was organized
and is practically without n At
the same time the court made plain
that he has not entered sufficiently into
the merits of the case in the present
proceedings to make ans finding with
respect to the charge against the
officers and directors of malfeasance In
office, but agrees that h standing OF
the Pratt company is sufficient to en-
title it to an adjudication of insolvency.
The Jucaro and Moron Sugar and
Land Company. was organized in TINS
State to operate uga plantations IN
Cuba and issued bonds for $4,000, 900,
With the funds thus realized three
large plantations were purchased, as
we'll as a railroad operating between
the northern and southern coasts.
To protect the bondllolders a mort
gage on the property of the concern
was given to the Colonial Trust Com
pany of Philadelphia, as trustee, but
by the terms of the agreement, the
latter resigned in favor of the Trust
Company of Cuba, which has Offices
in Havana.
How Claim Arose.
The Pratt Company later took $780,
900 worth of bonds as part of its pay
for building a large mill, and when the
on these bonds was not paid
an investigation of the affairs of the
was , started. This divulged.
it is alleged that members of the Cuban
Trust Company interested in the Jucsrc
and Moron Company had organized a
company known as the Jagueyal Sugar
Company of Cuba, and had then DID,
tanned a twenty-five years lease from
the Jucaro concern on all the property,
with the privilege of free operation.
A condition In the lease also made
it mandatory on the part of the Jucaro
Company TO devote the oney accru-
ing from such lease to the payment of
its debts to the Cuban Trust Company.
The Pratt Company, through Colonel
Clifford w. Anderson. a Georgia lawyer.
Immediately demanded payment of its
back interest and bonds. and accom-
panied this demand with a threat to
foreclose the mortgage. It's attention
was called to the fact that it was
necessary to secure the consent of one
third of the holders of the bonds before
a foreclosure could be made. Another
Investigation disclosed that the Cuban
fnanciers had quietly ~corraled enough
of the bonds to prevent this.
Case Taken to Court.
McCarter & English. of this city,
were then retained, and the bill in
chancery filed asking that Chauncey q.
Parker be appointed temporary re-
ceiver to seize any property situated in
this State. Bonds worth $4,000 were
found, but they had been transferred
before the court proceedings were be-
gun. 90 was also pointed out that the
charter of the company was void, under
a proclamation of the Governor, be-
cause of the non-payment of three
years taxes. These taxes were made
good, however.
The evidence adduced by counsel
made. it clear that the company,
through these various transactions, and
the lease to the Jagueyal Company had
stripped itself OF its property, and the
permanent appointment of Mr.. Parker
to wind up the affairs OF the company
was the result.
The defendants, among whom was
Jerry Warren, president of the company,
and promoter of a large number OF Gu
ban corporations, through their counsel.
r. Hardin and James d, MuIigan,
denied the Pratt Company's charges,
and claimed that the whole affair orig |
mates out of a refusal on their part to
allow the company to build the mill
spoken of.
They claim tina when the mill pro-
ject was first spoken of Pratt made
surveys and plans and they seriously
considered giving him the contract at
more tina $1,000, 900. Later they dis
covered that they could get the work
done for $3.50, 900. In the meantime, how
ever. they had allowed him 200 bonds
as security in raising money. Ac-
.companying the loan of the bonds was
an agreement that he was to return
100 and retain the other 100 as security
for a note held by him against them
for preliminary work for $13,5oo- When
refused to give him the contract
they asked for the bonds, but were re-
fused. Acting according to the Cuban
plan of calling a note, they served no
tice on him through a notary to pro-
d,ce the bonds and get the money
This he refused also.
What action the receiver will take to
recover assets is a mystery at present.
as there are no assets in this country
II is also intimated that h Cuban peo-
ple will take action to force the return
of the 200 bonds held by Pratt.
crurrrpV 00n VEApc nj