New-York tribune., 1918-12-06
Louis Hartog, Former Part
ner, Alleges Tamnlany
Chief Ruined Business
Got Corner on Glucose
Asserts Politician Thus Was
in ON Ground Floor in
Making Another Product

many hail, Is the principal defendant
in suit for $1O,oo0.o00 damages filed
yesterday in the Supreme Court by
Louis Hartog, who alleges that his
business, the manufacture of "MaIto
Dextrine," in which Mr.. Murphy was
for time interested, has been ruined
through the wide influence welded by
the political chief when Hartoy re-
fused TO meet certain business condi-
tions which Mr.. Murphy sought TO i'm
pose on him.
Mr.. Hartog says in his recital of the
alleged wrongs he has suffered that
The services of the District Attorneys y
office were employed to induces him to
meet the conditions which MIR. Murphy
and his attorney, Arthur j. Baldwin,
also q defendant in the Rctlun- tried
to force on him.
Got Control of Inxredianf
It was primarily the influence OF Mr..
Murphy, says Hartog, with the Corn
Products Refining Company, from
which Mr.. Hartog obtained his supply
OF glucose, the main ingredient of
=, ,M alto Dextrine,"' that admitted the
Iammany chieftain to the main floor
Of lucrative business the plaintiff
started ten years ago
It was this same alleged influence of
Mr.. Murphy with the Corn Products
concern, used later, Mr. Hartog CHARGES,
TO cut off his supply of glucose, that
ruined the business of the plaintiff and
rendered worthless the property he
bought at 214 to 224 East Twenty-sec-
ond Street and all the machinery he in
stalled.
All of this, Hartog charges, was part
OF an alleged conspiracy of the defend
ants.
Another defendant is John A Nc
Carthy, whom Mr.. Murphy sought to
put into the company when he got
ready to get out
Cites Murphy's Influence
the power behind the threat of the
defendants, other than the Corn Prod
gets Refining Company, that unless Mr..
Hartog did their bidding he would be
unable further to do any business, that
the influence of the municipal govern
snent would be exercised against him,
and that he would be driven from
New York. Also it was threatened
That his employees and the persons who
traded with him would be molested.
Mr.. Hartog says he had an agreement
with the Corn Products Refining Com
pany to supply him with 500 barrels
a day of the commo odity at the market
price But, his story goes, the company
refused to carry out the agreement,
Then along came Mr.. Murphy and ~
March 26 last, he and Mr. Hartog en-
tered into an agreement under which
Mr., Hartog promised to transfer his
business to a corporation to be known
as the North Kensington Refinery MIR.
}iartog was to accept q total capital
stock of 81 100000 and to sell to Mr..
Murphy 25 per cent of the stock,
amounting to S250,000.
Other Conditions Provided
Mr.. Murphy agreed to pay for the
stock sl25, 900 in cash and the balance
in 30, 60 and 90day payments. He
also had an option to buy additional
stock from the plaintiff, not to exceed
S2O000O the option to be exercised
before October l.
The Tammany leader promised to
furnish $4,000 working capital and
MIR. Hartog $150,O00 This agreement
Mr.. Hartog should continue the busi-
ness as an individual, Mr. MURPHY to
receive 25 per cent interest in the
profits beginning with April /, on con-
dltlon that the other terms of the
agreement were carried out. Mr. Muir
phy paid S175.000, but refuses to pay
the balance of s125,OOO, says Mr.
JIartog
1t is stated by Mr.. Hartog that he
was led into making the agreement
with MIR. Murphy upon his representa-
ton and that of Mr.. Baldwin, his at
torney, that they could obtain from
the Corn Products Refining Company
more than 500 barrels of glucose a day.
In fact, their supply would be limited
only by the quantity on hand. Rely
ing on these promises, says Mr.. Hartog,
he arranged for a largely increased
business, buying the property at PA
"a East Twenty second Street and in
stalllng at great expense some spc-
cally adapted machinery.
Said They Met Obstacles
Between April and May l6, Mr..
Hartog said, Mr. Murphy and Mr.. Bald
win "prtended to try to procure glucose
IN large quantities and pretended that
they were meeting with mny aobtstacles
from the defendant Corn Productsl
company" Mr. Hartog says that on
May 10 Mr.. Murphy and Mr.. Baldwin
represented to him that it was neces-
aaIy to create and provide a fund to
meet certain expenditures which would
nave to be made on behalf of the Corn
Products Company, which would not
supply the glucose, it was SAID. unless
the fund was provided
This arrangement provided that all
glucose supplied was to be charged TO
mr.. BALDWIN a l cent a pound more
than the market price and was to be
known as body syrup instead of glu-
cose' Mr.. Hartog protested against the
plan, but being assured by Mr. Murphy
and Mr. Baldwin, it is alleged, that it
was the only condition that he could
OBTAIN the necessary material. he gave
ms consent. This arrangement was in
eject until juno 15, a special bank &c
count having been established in the
T"sne Of Nh. Baldwin, which ves to be
GScd ehlohy to pay the bills of the
Corn Products Company.
Fired of Agreement
On that date the Corn Products Com
gany became dissatisfied with the ex-
isting arrangement and insisted on re-
turning the l cent pound overcharpe.
winch was repaid by credit.
Another alleged incident on that
same date was the announcement bv |
Mr Baldwin that no more glucose could |
be obtained unless Mr.. Hartog screed |
10 pay him - cents on each pound |
that would be delivered This demand |
Mr.. hartog alleges, was made with the |
knowledge and acquiescence Of Nv
Murphy Under this arrangement. Mr. |
.'artoe adds, he paid Mr.. BALDWIN
h.t2D.5o Immediately after the new |
agreement was made something eJse |