The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-18
BRINGS SUIT TO GUST
LONG ACRE CONTROL
Hearn Says Fisk and Sheehan
Stand to Make More Than
S6,0OO,OOO.
TWO SETS OF OFFICERS
Move in Attack on Transfer of
Long Acre Light and Bower
to Inter-City.
TWO SETS OF OFFICERS

Edward L. Hcarn, wce-president and
general manager of the Casualty Com
pany OF America, filed suit in the Supreme
Court yesterday In behalf OF himself and
other stockholders OF the Manhattan
Transit Company owner OF the bulk OF
the stock Of the Long Acre Electric light
and Power Company in which he asks
the court 10 set aside the election of a set
OF officers on June IS last, who are alleged
to be under the control OF Joseph H.
Hoadley. the president, and TO declare
valid the election of another set of
officers and directors headed by himself
as president.
The suit is part OF legal proceedings to
attack the transfer of the Manhattan
Transit Company's Long Acre stock to
the Inter-City Power Company. organized
by Pliny Fisk of Harvey Fisk 4 Sons,
John c. Sheehan and Hoadley 10 finance
the construction of the Long Acre COM
panys plant in Manhattan. Mr.. Hearn
sues IN behalf OF a protective committee
of Manhattan Transit minority stock
holders who own s4.652 sha res. while the
F1sk- SYSTEMATICALLY interest controls
49, 900 ehares
Illegal Profits Alleged.
IN his complaint Mr.. Hearu says ne
Manhattan Transit Company was Or
Ganized with Sio.ooo.ooo capital stock
and acquired substantially all tho stock
Of the Long Acre company He says
that Joseph II. Hoadley was elected presi-
dent In 1911 and has since dominated
and controlled the corporation. In order
20 perpetuate himself and his associates
in ONCE. the plaintiff says, Hoadley and
his fellow directors failed 20 call an cleo
zion in 1912 and 1913 as required by the
company's bylaws
q n IN August
Hoadley. Sheehan and their associates
contrived to secure unlawfuly for them
selves a great personal profit TO the in
jury OF the company, and caused the
Manhattan Transit Company to transfer
all its assets to Pliny Fisk lat a wholly
inadequate price" detrimental TO the
company and It's stockholders
In this transaction Mr. Fisk. represent
ing the banking firms OF A. Il. Leach &
Co. and Harvey Fisk & Sons. organized
tho Inter-City Power Company 20 take
over the Long Acre assets owned by the
Manhattan Transit Company.
Charges Usurpation of once.
Mr.. Hearn says that because OF the
failure Of the defendants to hold an cleo
don OF officers as required the minority
stockholders protective committee. which
ne represented sent out call Tor
meeting OF stockholders to elect officers
Of this proposed action and called meet
ing Of their own tho day previous to the
date set for the plaintiffs meeting. and
at this meeting Mr. Hoadey was reelected
president and his fellow directors were
also reelected. on the following day the
minority stockholders had their meeting
and elected the following officers Edward
J., Hearn, president Edward NJ Tierney,
proprietor OF the Victoria Hotel, Vice
president; David Herman. secretary, and
Frederick A. Reed. proprietor OF the Park
Avenue Hotel. treasurer.
says Profits VIII B- Millions.
Mr.. Hearn alleged that the defendants
are now unlawfully claiming to be the
legally elected officers OF the Manhattan
Transit Company. and have taken pos
session of all the seals. books and other
office equipment OF the company Attached
TO the complaint is a notice sent out to
the stockholders alleging that under the
agreement made by the defendants with
Pl.ny Fisk. the Inter-City Power Com
pany is to issue o,O00.0 900 OF stock, &c.,
400, 900 first mortgage bonds. and 3d.
500, 900 income bonds and that the least
Mr.. Fisk will get out of the transaction
Is s3,5OO.0OO of stock and $4,000 or In
come bonds. while 100000 of stock and
sl,oO0,000 OF bonds go to Mr.. Sheehan.
II Is alleged that the company itself Will
get only IL per cent OF the total issue
OF securities OF the Inter City Power Com
pany and that a contract has been made
with the American and British Manufac-
turing Company, of which Hoadley Is
president for the construction or the
Long Acre company's plant under terms
which will Weld the Hoadley concern a
net profit OF Is per cent. 1t II alleged that
a ruling by the Public Service Commits
sion prohibits profit Of more than
per cent. on the construction OF public
utility plants.