The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-03
STARTS 100000
BROOKLYN GAS SUIT
Thomas Read, Stakeholder,
Makes william Rockefeller
q Defendant.
SELFISH CONTROL ALLEGED
Huge Assets Concealed and
State Commission FlOuted,
Says the Complaint.

TIE minority fight Of Broollyn Union
Gas Company stockholders for bigger
dividends out Of the huge profits it is al
legged are being Piled w in surplus ana
hidden assets has reached It's height m
q suit begun In ihc Suvicris Codrt. Brook
Ign. for an accounting OF S1,DGD1)6 that
Il is claimed the =. stockholders pugri - SET.
w. Bourke Cochran. who is IN the fore
front Of the minority hight. Is acting as
attorney for Thomas Read OF Brooklyn.
owner OF $50 shares. Who brings me
suit. Tho fight has been going on iIr
more than year.
Wl'iam Rock ofHllhr, director WHO ~
made "A defend'nt. and the So 3iard NJ
Company, It is charged. control tho cpm-
pany in their own intcro.S'. The ,Jm.
plant say that tie mana .sm'u. "c tire
company has been actually directed Tor
the last ten years from the ollie 90 the
STANDARD oil CDmpa ny, at 20 BruadNav.
IN the city of New YORK: tAot Is to sa...
William Rockefeller. who owns h.I; l,U
shares OF It's capital stock. but WAC ncv-
orthelcsg chooses ,ue officers ami du, c;.rI
and determines as policy, ~ for thl
benefit Of its stockholders o. the safe
guarding Of their property. hut for the
profit of himself and Of his colleagues"
Tie complaint charges that the gas
Company at prices dictated by William
Rookie Teller.
One of the main charges is that the dl.
rectors have concerned $1,000. lUn. when
should show In The ST. .1itus. but which g
row represented IN she reports OF the
company to be- ON! s1.OO0.oo0. the total
real surplus being given as $li,o0U.VU0
This concealmcnt of the assets began. il
IS alleged In an attempt 10 dee We the
1,pUiSlttiIpp whom In + l.
was up in 1905 rs to the cost OF produc-
ing gas.
Deception Of the Public Service Com.
mission In 1911 is also charged. the com.
plant quoting Nice-President Jourdan as
saying regarding the statement that the
company could pay II per cent. dividends
that the directors were unwilling to make
" formal report OF the company's condi-
ton because If the actual earnings were
made known tic Public Service Commits.
sion would undoubtedly order "A further
and probably ruinous reduction in tho
price Of gas"
Among claims that large amounts al
money were spent unnecessarily the
minority stakeholder charges that the
company borrowed 100000 from two
Brooklyn trust companies Of which James
II. Jourdan and David Leggrt, directors
Of the gas company, We're directors and
stockholders, paying fun rates for tho
loan, when at the same time the company
had>inore than 81, 600 10 it's credit in
banks and trust companies on which II
was receiving only per cent.
Mr. Jourdan denies control by William
Rockefeller. As for hard bargains in oil
forced on the company by Mr. Rockefeller
MIR. Jourdan says:
ESQ far as have been able to observe il
the influence of the defendant Rockefeller
has always been exerted in favor OF the
Brooklyn Union Gas Company and tho
favorable bargains We have been able tc
make in gas oil have been in some degree
due to this influence exercised by MIR
Rockefeller in behalf of the company"