New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-16
EOADLEY LOSES
POWER co. FIGHT
Jerseys Highest Court
Afhrms ReceiverShip
Decree.
fBy telegraph TO rhs Tribune J

fBy Telegraph 20 Ihs InDuLe4
Trenton, Y. j., Oct. 15.-The appoint
ment of Wilbur F. Sadler, Of this city,
as receiver for the International Power
Company was affirmed to-day by the
Court Of Errors and Appeals. Henry
W. Bull. Of New York. stockholder'
obtained the appointment OF the re-
ceiver in the Court Of Chancery on the
ground that Joseph II. Hoadley, the
promoter had stripped the concern OF
thousands Of dollars.
The downfall of the international
Power Company began IN 1902. on
April 80 Of that year the stock shot
dawn IS points. and joseph Letter.
/ Hoadlev and Cyrus Field Judson,
broker. were accused Of having engi-
neered the pool that produced the ter
rife crash. Franklin, Scott Co.,
brokers, sued Hoadley and Judson iof
$4,000. Suit after suit was proughI:
The case was in the courts ana out OF
ia regular Finnegan case.
Hoadley at first refused TO sho" hls
hooks. After "a year or so, threat OF
Imprisonment IN Ludlow street Jan
made him show them. II. W. MaIsh'
~ the limited States Steel Corporation,
brought another suit Tor SZl'VOo' alIee
ing Hoadley had induced MN 20 invest
IN lnterNAl4OIaI. 4H4S Wv
dragged on for five years.
In the mean time noadley once ap-
neared as cotton king. Then he MADE
a denial that he had cornered Tennes-
/ soc Coal and Iron stock. He also SOLO
tho franchise Of the Manhattan Transit
Company, which owned a right OF way
from the New York PostoiAce TO the
Brooklyn City Hall.
Nerdict Obtained BY Brokers.
In 1907 Joe Letter took the stand and
denied that he had been in pool with
IIoadley at the time Of the crash IN
International Power That year the
b,okers got a verdict against hoadley.
hudson declared he was bankrupt. n
1908 there was q third trial. Four
Years later a referee decided Judson
Jgas responsible for the poo' and ITS
consequences. In January, 1914, Hoad-
lev was in litigation again IS connected
with the Manhattan Transit Company
and the Long Acre Electric Light and
Power Company.
Mr.. Bull. who made the complaint in
the action decided to-day, asserted the
power company was merely fence Tor
Eoadlev-a sort of clearing house Tor
companies which Hoadley promoted
The broker charged that the trial pal
ance of the company showed assets
lime 30. 1914. of so, 4S6,007, while ne
claimed il could not realize from its
total holdings more than SlOO,OOO,
! lille II had liabilities exceeding SZoo,-
GOO exclusive Of dividend claims Of pre-
ferred stockholders exceeding S3OO,OOO.
The books were altered in December,
1919. Mr. Bull charged, TO make IL APP
pear that four years PRIOR 10 mat tiine
the company took over $1,763,OOO OF It's
capital stock, now wellnigh worthless,
crediting Hoadley with the amount ne
was supposed TO have paid Tor the STOCK
wears before, together with interest,"
other charges were that HoadIey re-
ceived a salary of $4,000 annually,
Win Sc 900 for travelling expenses. and
thai George S. Graham, an attorney,
was paid retaining fee of S6,OOO an
nually. even though the company was
practically out of business. -,
The assets Of the company, Mr.. Bun
asserted. were 100000 in bonds of the
Manhattan Trust Company, stock in
the Alabama Consolidated Coal and
Iron Company tadJudged a bankrupt
% in 1922. stock of the Trinity Zinc,
= Lead and Smelling Company and the
7 Dominion Bessemer Ore Company, both
of doubtful value stock of the Amerl-
can and British Manufacturing Com
pany (sold to the international Com
pany), patents and patent rights car
ried on the books as worth over S3,uOO,-
600, but which never earned any IN
come; stock Of the American Diesel
Engine Company, bonds Of the Hudson
Company and the Public Service Tele-
phone Company, on which default had
been made for a number of years, and
numerous book accounts, debts and
| claims of long standing.
About two months ago a New YORK
newspaper asserted Hoadley had made
the statement that the new Bridgeport
Projectile Company was merely an out
growth Of the American and British
Manufacturing Company, but that in
reality the Bridgeport Protectile Com
pany was being financed by Ger
man, one Carl Heynen, agent in Mexico
of the Hamburg American Line.
For many years. the complaint stated
the chief asset OF the international
Power Company consisted of 32.ll3
shares of stock Of the American Loco
motive Company, obtained through the
sale Of the Rhode lsland Locomotive
Works.
SAYS Hoadley Used Stock Dividends.
From 1904 10 1913, IL was stated
this stock yielded S10S, 661 TO sl7726l
annually TO the power company, but
Mr.. Bull alleged that Hoadley, instead
Of turning these dividends into the
treasury, used them for his personal
l benefit, and that the books had been
| falsifed to show Hoadley rather than
| the power company owned the stock
II was said the interest and other
| accounts had been juggled 10 show that
| the power company owed Hoadley
| money instead of he owing IL; that the
/ American and British Manufacturing
Company stock by such means had been
;. bought twice by the power company. ,
The bill of complaint charged that
the annual net income for 1909 re-
vealed that $7,0OO,O0O stock was out
standing, while the books of the com
psny AS altered show only little more
than So 200 900 stock outstanding. The
return to the government shows a gross
income Of sl27,370 for 1910, of which
Sl0s,O00 was received as dividends on
stock Of other corporations. Mr.. Bull
charged that the books as altered
showed an income for 1910 o. only
$1,000. also that il owned no stock in
other corporations upon which diyi-
! bends were received.