The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-11
ORDERS RECEIVER
FOR POWER COMPANY
Jersey Chancellor Sustains
f;ull's Charges Against
Joseph II. lIoadlcy.
NO CASH FOR BIG SALARIES

TRENTON, y. j.. Dec. 10--rn ordering
to-day that a receiver be appointed for
the International Power Company, Chan
cellor Walker handed down an opinion
sustaining the charges Of Henry w Bull,
a broker of New York. that the company
is insolvent and that its affairs have been
grossly msmanaEed 70 the great preju-
dice OF it's stockholders. Pending the
actual appointment of a receiver the com
pany IL restrained from continuing bust
ness or paying the excessive salaries al
legged to have been paid to its president,
Joseph II. Hoadley. and his associates.
The chancellor had no difficulty in de-
terminlng that although the company has
book assets running well into the millions'
it has debts amounting to at least a quar-
ter OF a million dollars which 1t is with
out funds to meet. on the question or
mismanagement the chancellor remarked
that the evidence clearly shows the busi-
ness OF the company has been conducted
at a great loss and IN manner greatly
prejudical to the interests OF It's credi-
tors and stockholders.
I'm 1904 the income OF the company
was s225, 942," said the chancellor. This
year the income has been only s40I The
salaries of the officers OF the company
have remained the same. the president
having $4,000 year, $1,000 OF which
is for expenses one officer $4,000, another
$500 and still another $1,000 year.
Latterly these salaries have not been
paid, there being no money to pay them
although the defendant has book as
sets OF millions OF dollars comprised OF
the capital stock OF other corporations,
none of which have paid dividend Tor
years. II has debts totalling IN round
numbers quarter OF million dollars
some of them quite old. with no money
TO pay them
In his application for receiver Mr..
Bull charged that the International Power
Company had become only fence with
which to cloak the high finance schemes
OF Mr.. Hoadley and MS associates on the
board OF directors, which he controlled.
The International Power Company was
organized ostensibly TO manufacture loco
motives engines, cars and machinery OF
various kinds. Actually, according To
Mr. Bull, it's transactions consisted In
purchasing and exchanging stock and Sc
curites of other companies, Most OF these
turned out to be worthless, but according
10 Mr. Bull, those which proved of real
value found their way into the possession
of Mr.. Hoadley, his associates or his out
side business interests
In defending the suit Mr. Hoadley made
extravagant assertions concerning the
prospects OF the company, saying II had
assets worth more than $4,000, 600. that
its underlying companies were In a posi-
ton TO yield large returns, particularly
those equipped 10 make ordnance and
other munitions OF war for the European
bellgerents. and that through its holdings
in the Long Acre Electric Light and Power
Company. the International company would
soon be in a position to operate under
n franchise for furnishing light and power
in New York city.
Protesting stockholders Of the Inter
national company. including Mr. Bun, had
difficulty in obtaining information re-
gardng the actual condition Of the cor
poration. More than a year ago a writ
of mandamus was issued by the Supreme
Court directing the production OF the
company's books in this State for inspec-
ton. The company refused to comply
with the order OF the Supreme Court,
whereupon application was made To the
Court of Chancery for the appointment
Of a receiver on the ground Of gross mis-
management and the failure of the COM
pany to comply with the mandate Of the
supreme Court.
After the Court Of Chancery had en-
Joined the company from selling or trans
ferring any Of it's property and from pay
LnB SALARIES 10 ItS principal officers At
company signltied II. willingness to pro-
duce It's books. An examination OF these
by Mr. Bull disclosed the insolvency of
the company and he then filed an amended
bill in the Court of Chsncery, alleging
insolvency as an additional ground for
the appointment of receiver.
The international Power Company has
outstanding capital stock of Sl2 .40O,o 900.
~ which s6,0O0.0OO is preferred stoCk.
Suit is now pending against 1t IN New
York 10 restrain the transfer of any stock
or bonds OF the Intcrcity Power Company,
an affiliated corporation. TO any person or
corporation other than the Manhattan
Transit Company. The lntercity Power
Company contends 1t has an exclusive OPP
ton to purchase stock of the Long Acre
Electric Light and Power Company.