Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-05-15
FIGHTING AGAINST
STOCK TRANSFER
TO MRS. MENNEN n
Frederick Blanchard Asks In
junction Against Prudential
Insurance Company.
CLAIMS THAT SALE
WAS WHO'LL Y5ILLEGAL\
Stock Held by Her as Collateral
Sold at Public
Auction.

The Prudential Insurance Company
figured merely as "stake-holder," as
its counsel, Edward D. Dufieid, put it,
before Vice-Chancellor Emery today,
on the return of the rule to show
cause why it should not be enjoined
form making transfer of certain stock
to Mrs. Elma C. .Mennen. the wealthy
widow of Gerhard Mennen. who made
his fortune in the manufacture of tall
cum powder
Frederick c. Blanchard is the com
plainant in the case, and the stock in
dispute amounts to 207.6S shares in the
Rock of Gibraltar's' business. Mr..
Blanchard was represented in court to-
day by William Mayo Atkinson, Of
Elizabeth, and Alexander R. Fordyce,'
of the New York bar, while Mrs Men,
mems interests were looked after by
Frederick Il. Hey and Charles C. i.Pis-
grim.
1t was expected that Chancellor tPst .
ney himself would hear the arguIn4it
of the lawyers, but he was detaineh An
Trenton and detailed Vice Chancellor
Emery to sit upon the case
Mrs. Mennen Holds Stock.
The stock is now in the hands OF fMrs
Mennen, and it is charged by Mr.
Blanchard that the sale at WI aoh it
was purchased for her, Febrm ary IS,
1911, was illegal in several respa It's. She
obi 'ef possession of the 81 cock as
security for loan for $50. .o00 obtained
May 8, 1910.
One of Mr.. Blanchards clair os is tina,
John ]. Korb, acting as agen for Mrs
Mennen, prevented Julius S. ! Rippel and
other bidders from making a bid by
stating ito him that it wout d be useless
for him to attend the So le. Another
claim covers collusion. jhiIe stin an.
other Is that the sale we s not properly
and legally advertised.
The stock brought : $50, and this
Mr.. Blanchard sa:J IS far below it's
actual value There is a recital of
facts which tend to show the reasons
which forced Mr.. B Ianchard to secure
the $50,000 to me- 1t a demand note
which he had outst .nnding, representing
a loan.
Give Ht tory of Case.
Mr.. Atkinson N his bill presented to
the court first set forth that his client
resides in the township of Morris,
Morris county and then went into the
details OF TIN transaction, stating that
on April q. 1910,s Mr.. Blanchard made
contract with Y. b. Haagama and j.
d. PickarS J. money brokers' of New
YORK, to procure a loan for him. and
they fnaP ~ secured the wealthy widow.
Letters rfere also submitted covering
the corr sspondenee between the inter
ested " arties in connection with the
loan.
1t W as held by Mr. Atkinson, also,
that Y he value of the shares had great
iy in creased and for that reason his
cliep t's rights in the matter had not
bee1 properly. conserved.
Value of shares.
i"The value of the shares of the Pru-
q entail Insurance Company of Amerj-
fca," he held, (which are half shares
that is to say, $50 par value a half
share Is very great, and is of unknown
great and peculiar value, and depends
more or less on what bylaws and the
discretion of the company is paid in
Of limited quantity and cannot be
bought on any board of brokers or in
any stock exchange. except in very
limited blocks at an enhanced price"
The lawyer added that during the
early part of 1910 and since then the
stock has been quoted by brokers at
fgreat and peculiar values"
Claims Sale Void.
On the points that the sale was in
equitable, illegal and 5oid, Mr.. Atkin-
son insisted that Mr.. Korb prevented
''the only reliable Independent bidder
from attending the sale; that the ad.
vertisement for the sale was undated,
covered 225 shares, instead of 2076S, and
that the sale was void because Mr..
Korb was not man OF sufficient means
to make ouch a bid; but did so only on
behalf of Mrs. Mennen. The transaction
was also of no value, he insisted fur
ther, because Mrs. Mennen had no
right, either through herself or through
an agent, to buy such stock, "inasmuch
as the instrument under which the
shares were pledged was fraudulent"
After Mr. Pilgrim had read several
counter affidavits Mr.. Korb was called,
and gave immaterial testimony to the
effect that he received $1,000 in COM
missions from the New York brokers
for his share in the work.
Mr.. Atkinson was then allowed to
subpoena Mr.. Rippel, and further hear
ing was put off until Friday afternoon.