New-York tribune., 1911-02-01
American Refining Starts Action
Against National Company to
Get "HouseCleaning."
ALLEGES ILLEGAL TRANSFER
Demands Surrender of Millions
of Common Stock, Payment
of S1O,000,0O0 for Shares
or Return of Dividends.


,erdav I'm the Court Of Chancery q Tren-
Ton. y. J.. against the National Sugar
Refining Company and the executors "
y o. Havemeyer's estate. Its object is
IN set aside as illegal .he transfer 10 tho
late II. O. Havemeyer Of practically all
of the National company's common stock.
4 statement issued last night by repre-
sertatiyes Of the American Sugar Rem
i,,. Co0nanv refers 20 the suit as "radi-
cal rouseclcaning" and calls it de
terrlined effort 10 turn the HavemeNer
interests out Of their last sugar hold
ings"
The National Sugar Refining company
which was Incorporated In New Jersey
in 1900. issued Slo,oooooo preferred ana
sloOo0.oo0 common stock Of the pay
value OF 500 a share II became known
following the dling Of the government
suit against the American sugar ReI'n
Ing COMPANY about two months ago tha'
y q Havcmeyer as president oi inc
American company. had purchased tor
,rs, company S5.ooo.o0o n National pre-
fer~od stock at par and that in return
for his service the National officers han
turned over 90 him at least S9.5Oo'o'o
NJ common stock. II is now contended
that since there vas no consideration
involved this transfer OF common stock
&c mil and void under the laws Of New
Jersey
Deranos Surrender Of Stock
Tho slt is brought in the names ~
vo,hs~;ei Tooker. William J. McCahan'
q Howard Wilson. G. q. Beaumont
ftst stockholders os the National Sugar
reArinr COMPANY. against the company
rs-res Il Post. its president; Horace
Hqvemercr and the other BavemeYer
executors. and the directors Of the Ma
tto0sl Sugar Refining Company. 1t de-
ro-rds the surrender of s1o,ooo,ooo Of
the National common stock or payment
for the anne n face value, with interest
from 1000. in case the stock is not paid
for the suit seeks the return Of s2.5o0ooo
raid out on the stock in dividends.
Tie bin sets forth that in 1900 James
II Post obtained options on the stock
Of three ompanies-name'y the New
York Sugor Refining Company, the Ma
tional sugar Refining Company end the
Mclenhauer Sugar Refining Company
that Pos, purchased ten thousand shares
O., The National Sugar Refining Com
rarv. ten thousand - the Mollenhauer
COMPANY ana six thousand shares Of the
New York COMPANY. This stock he
turned over 10 the National Sugar Re-
arirg Com1any # New Jersey and was
rail therefor $1S25oooo made up Of
Sl0oo0aa0 of the common stock and
$E25oooo o. the preferred stock Of the
Nauorel Sugar Refining Company Of
New Jersey
u IS charged that Post got the So
c'UVO ~ common stock as a sratuity.
and il is further charged that in the
transaction he was acting as the agent
of Henry O Havemeyer. and that i'm
med.ately upon securing the certificate
OF this common stock he signed the same
In blank and turned il over to Have
meyer
Want New Certificates Issued.
Az e. meeting Of the National Sugar
Refn.rc Company Of New Jersey which
vas 2, .e held on January II the Have
never executors told Post whom they
wished him o. vote for for directors.
Post refused q vote at all, and the
meeting was adjourned until March.
subsequently the Havemeyer executors
appeared before the transfer agent Of
the company with the certificate in ques-
ton and sought % have new certificates
issued lu this proportion: Nineteen
thousand shares 70 the trustees Of Henry
o. Hayemeyer's estate and 1888 shares
each 90 Adelne H. Frelinghuysen. Eloc-
ira u Webb and Horace Havemeyer,
making $4,000 shares in all.
Tho transfer agent took the question
Under a1yisemont. on Monday the
American Sugar Refining Company
served formal notice on President Post.
warning him that any attempt to trans
fer the common stock % tho Havemeyer
heirs would be- at his own risk. assert
lng that the original issue of the stock
TO Il. o. Havemeycr was illegal. The
suit seeks TO oujoin such a transfer.
II. q. Havom,vcr disposed of only
1900 shares ~ tho National common
IL his wiu and for some time il was be-
Aeved that these represented his entire
-oiairgs Then came the demand Of
Horace Hav,mevcr for transfer and di-
r'ctorato reoosnition and il was learned
tat 7GU.D shares Lad been disposed #
%. do'd ~ gif, rlio, 10 Mr. Havemeyer's
ceal.
HaVereyerc Will DcfenA Suit
The statement issued for the American
sugar Refining Company last evening
so!-
IL IS readily seen. that the animus be-
A'nc the present action is purely a ques-
Ion ~ values. II the Haycmeyer issue
can he cancelled it will release for sale
ten millions of common stock, which i'm
Mediately becomes an asset Of the Ma
Naaal Sugar Refining Company ana this
F" {" an iutCnts the same as ir a divi-
atnd To- that amount had been declared.
Increasing by 100 per cent the value Of
Ne present holdings. Of which the Amer
!'-n Sugar Refining Company is Il quar-
Ter owner"
Horace Havcmcyer said last night that
~ had not heard of the filing Of the suit
A'r had ho heard that such "A suit was
l-utlMulahd. althnneh ho lad hoard