Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-01-12
CASUALTY co. MAY
SUE FOR COST OF
ITS PROMOTION
RumOrs of Legal Action Are
Flying Thick and Fast in
Insurance Feud.
IGRAY-MANDEVlLLE
PRESIDENT SILENT
Refuses to Discuss Any Phase
of Controversy Involving
His Company.


where only one grew before, as the re-
suit of the feud between tho CONNER
cial Casualty Insurance Company and
its promoters, the Gray -Mandeville
Company. The stockholders meeting
last night. at which the officers and di-
'rectors were upheld in the course they
have pursued. proved the crisis In the
dispute that followed the advent OF
William ]. Gardner as general manager
and the abrogation of the promotion
contract held by the Gray y-MBndevilie
concern. 1t was because this contract
was nullifled the Gray -Mandaville Com
pany recently brought suit 10 recover
100000.
The reply of the insurance company,
1t Is understood, will be a counter suit
to recover the cost OF promotion, the
officers having become convinced that
the amount of money expended by
Gray Vaudeville having been In excess
OF the sum needed TO start the Com
mercial Casualty. 1t was also rumored
that General Manager Gardner is about
to bring suit for libel against Gray
Vaudeville, basing his action on the
circular recently sent to the stock
holders OF the insurance company by
It's promoters, and that he has placed
the matter In the hands of his personal
attorneys.
VIII Not Talk.
Mr.. Gardner, when asked concerning
this declined to confirm or deny the
report In the circular that was sent
to the stockholders over the Gray
Mandeville signature Mr. Gardner was
branded incompetent and personally
ambitious" and 1t wes also asserted
that the directors Of the insurance
company have apparently surrendered
the entire management OF the company
to him" There is also a report that
Mr.. Gardner win bring a similar suit
against the "Expositor,' a local insur-
ance publication, a recent number of
which contained an article advertised
as THE truth about the Commercial
Casualty" In which Mr.. Gardner was
attacked.
Edward W. Gray. president OF the
Gray Vaudeville Company, today re-
fused to discuss any phase Of tho war
between his company and the CONNER
cial Casualty.
At the meeting last night, at which
President Christian W. Feigenspan pre-
sided, there was received a letter from
the insurance company's counsel, Rob-
ert H. McCarter, in which he declared
the Gray Vaudeville suit for $1,000
need cause neither the stockholders nor
directors amy alarm. Practically the
entire meeting was given over to q
discussion of the dispute between the
insurance company and its erstwhiie
promoters.
Discussion of SUIT.
a% be- alsl
took in practically the entire story of
the company from the time 1t was or
ganized on April 2. 1909. According to
the statement OF Conover English, of
the firm of McCarter g. English, and
also of General Manager William J.
Gardner, the original board of d.
rectors comprised a number of men
who had no interest in the company
whatever and who were dominated on
tirely by Mr.. Gray and Mr.. Mandeville,
the promoters of the corporation. Mr..
Gray admitted this in effect in an in
terview last night, when he said that
the men on the original board were
almost of no Importance in the busi-
ness world, and made directors only
for the purpose of effecting tempo
rary organization.
Stock had been given the original
directors. Mr.. Gardner said, 30 that
they could qualify as directors Of the
company and pass on whatever action
Mr.. Gray or Mr.. Vaudeville might sug-
gest An organization meeting was
held at 9 o'clock on April and
at 10 o'clock the board Of directors
since nicltnamed the dummy board"
met and accepted the contract offered
by the Gray Mandeville agency. This
contract gave the latter company the
right to underwrite the entire capital
stock of the new corporation (s5o000o), (
with @ commission of 80 per cent. for
organization expenses This 80 per
cent was later reduced to 20 per cent. /
Provision of Contract.
The contract also gave the Gray (
Vaudeville Company the sole agency of .
the Commercial Casualty Company in
New Jersey, New York, Illinois, Penn
sylyania and Massachusetts for ten
years, with such commissions as should
be decided upon by the directors of
the casualty company
The contract was accepted by this
so-called dummy board" and at the
next meeting of the same body the
minutes embodying this agreement
were approved Mr.. Gardner, in an
interview lHSL SNPAoihOo hhc pAO-
cedure from this point on.
"As soon as Gray and Vaudeville mad
what they wanted in the shape OF this
contract" he said, they knew they
could never get anywhere with the
board of directors they had, so they
began to get in new men, men who had
money and influence enough to make
the concern 60 One by one. their
dummy board began to resign, as
can show you by the minutes of the
meetings following. Here are their
names"
Mr.. Gardener pointed to copy of I
the minutes of the first meeting held
on April 2, 1909. The list follows: c..
Fitch Bennett, Lester Pach. John Pole,
Samuel A. Scull Charles w. Eichles,
jr., Herman Bauer, William Boehmer,
Leo Baker. Edward Nesbit, John James
johnson, William P. Sutherland, jr-
fConfiryusd ON Ninfh Paga.)