New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-03
Read, for Brooklyn Gas
Stockholders, Obtains
Examination Order.
CLAIMS STANDARD
OIL RULES CONCERN
John DIS Brother William, Rog-
ers, Jourdan and Leggett
Called in New Action.

Thomas Read, of s33 st. Marks av.:
Brooklyn, owner Of 1920 shares OF
stock of the Brooklyn Union Gas com
pany, declaring that S7,OO0,00O OF tne
nrofts of the concern which snouid
have been divided among the stock
holders has been concealed from the
Public Service Commission, yesterday
attained from Justice Crane, IN the
Supreme Court, Brooklyn, an order dl.
recting an examination on July IL OF
James II. Jourdan, vice-president, anu
William Rockefeller, David G. Legget',
Henry II. Rogers and Henry W. Can
non, directors.
company in Brooklyn are acting rs
cloaks for the Rockefeller interests.
Some weeks ago he began an action TOT
an accounting, following an exsmina-
tion the books of the concern by eX-
pert accountants.
W Bourke Cochran and Martin l.
Manton appeared for Read. Dykman,
Oeland & Kuhn are counsel Tor tne
GAS company. Mr.. Cochran holds l,OSo
shares of the gas stock.
Mr.. Read charges the unnecessary ex-
penditure of 100000 for purchasing
citv stocks and bonds and sl,OOO,O0O
for real estate and buildings and the
borrowing of 100000 at full interest
from two trust companies when there
was more than 100000 to the credit
of the corporation in banks and trust
companies at 9 per cent interest: ne
alleges that two of the defendants,
Jourdan and Leggett, were directors
and stockholders in the trust COM
panies. IL. .Lo
Mr.. Reads affidavit says that the
company's cash balance OF s3,ooo,ooV Is
far in excess of the sum necessary TOT
the needs of the corporation, which,
he alleges, represented its surplus AZ
81 900 600. when il exceeds Sl4,OOo,Ooo'
Concealment of assets, he hints, pegah
wears ago in an attempt to deceive tne
Legislature Of 1905 as to the cost Oh
producing gas.
Mr.. Read alleges that the manage
mont of the company "has been actu-
allv directed for the last ten years
from the Office Of the Standard Oli
Company. at 26 Broadway, New YORK.
and that William Rockefeller, VINO
owns but 100 shares OF It's capltai
stock. chooses its officers and directors
and determines its policy for the proht
of himself and his associates.
Mr.. Read alleges that IN November,
1911, Mr.. Jourdan was asked for copy
of a report of the company's CONDITION
in which it was stated II per cent divl,
dends could be paid on the capital
stock. He answered that the directors
were unwilling to make formal report
of the company's condition, because, II
the actual earnings were made known;
the Public Service Commission would
undoubtedly order a further and prop,
ABLY ruinous reduction in the price OF
gas. a..
Mr.. Reads affidavit alleges that the
defendant Leggett was an officer OF the
Long Island Loan and Trust Company
and one of it's principal stockholders:
and as such is the chief beneficiary OF
the enormous funds unjustly withheid
from the stockholders and corruptly
kept on deposit with the said COM
pany."
Mr.. Jourdan. on behalf Of the com
pany, filed a general denial OF the
charges. Mr. Read is acting. for
committee of the stockholders who have
been waging a fight for more than
wear.