New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-24
EX-F|RE COMMISSIONER
SUED IN MARBLE FRAUD.
Thomas Sturgis Fled, 1t Is Said,
After Selling Bankrupt"
Finance Concerns Bonds.
HAD GOT LOAN OF $4,000
Four Directors of the Company,
One a Former Representative,
Are Also Accused in
Alleged Swindle.

Thomas SuIrgis. formerly tire Commits
sioner Civil Service Commissioner and n
member OF the board OF mana gers Of the
Elmira Reformatory. is one Of several ne
PENDANTS in a suit begun yesterday IN the
Supreme Court by Amos L. Prescott anu
% 7 GUIDE TO recover $50 63i on judgments.
II IS alleged that Mr.. Sturgis left Now
York about n year ago and docs not IN
tend TO return. The other Defendants are
Joseph j. O'Donohue. son OF former
City Chamberlain; Alwyn Ball. jr.' former
Representative j. Van Nechten olcott
and Charles II. Haig. Mr.. Prescott is
q manufacturer OF stove polish, and Mr..
GUIDE. the other plaintiff. is in the adj
vertising business.
In 1905 Mr.. Sturgis organized the con-
tinental Finance Company with capital
stock OF 10000. and was its president
and director until in July. ODonohue
was vice-president and director, and OIL
colt and Ball also were directors, IT is
alleged. In 1911. it's alleged. the finance
company and the Dover White Marble
Company. of which Sturgis was also
president. negotiated with William Miller.
representing Prescott and Guide. for a
loan Of $4,000 to be made to the marble
COMPANY In letter 10 Miller, IL Is
alleged. Sturgis said that the loan was
to be for six months. with privilege OF
renewal. the notes 10 he Endorsed by the
finance company and to be secured by
GO00 In Continental stock and $1,000 IN
gold bonds
IL is alleged that Sturgis represented
that the loan was TO be applied TO the
Improvement of the marble company s
plant. and that the company had title TO
l53 acres Of high grade white marble. lie
added that the new plant would earn from
$4,000 TO $1,000 year. which would
double the fixed charges. Sturgis ex-
pected the company 10 have virtual
monopoly in supplying New York With
white marble.
Sturgis told Miller. II f. further alleged.
that the company would be paying divi-
dcuds on its preferred stock within a
year. that at that time the earnings OF
the company were not sufficient TO pay
the interest on its bonded Indebtedness
ana tniit SUITES anu lll' blil'I At4'N''i p
knew that the Continental Finance Com
pauy was insovent Prescott says that
a statement submitted 20 him by the
finance company showed It's assets 10 be
s2IAaSl and liabilities only $500. on these
represcntatio lions Prescott and Guide each
loaned s.. 90 10 the marble company on
notes Endorsed by the finance company.
The notes were due April 10, 1872. but
they went to protest
The Dover White Marble Company
failed 10 put m n defence and the Cont
mental Finance Company made the point
that IL had no power 10 Endorse the notes.
Justice Lehman directed a verdict In
favor of Prescott and Guide. but Sheriff
Hamburger was unable 20 find any assets
and the judgments were returned unsatis-
ned
The plaintiffs allcgc that the Cont
mental Finance Company disposed OF Sc
curities before II became insolvcnt. 10 de-
fraud them. II is further alleged that at
Tive tine the loan OF 5000 was made 70
the marble company the directors Of the
Continental Company voted StuIgis n
salary Of 500 a year although the COM
pany was insolvcnt. and the FIRST payment
was made out OF the 5000. The plaintiffs
hold that all the defendants were in the
scheme 20 defraud them