Every evening, Wilmington daily commercial., 1918-02-25
SMYRNA GAS PLANT
INVOLVED IN SUIT
BEFORE j. s. COURT
Purchasers of Bonds Ask That
Mortgage be Declared
Void.
ACTION BROUGHT HERE

4 hill IN equity was filed this morning
in the United States District Court for
tho district of Delaware ~ Joseph Scultz-
bach and lIcvcrin : Rud nf rhiladelphia
and John : Doughty Of New Jersey
against the Kent County Light, Heat and
Power Cooperation Of SMYRNA. the Fruit
Growers National Bank of smyrna, the
Peoples Guarantee and Trust 90. OF
Dover. James II Clements. Gabriel Gar
rison Hervcy L Hall WalterO lioHceker.
Alfred l.. Hudson. Walter Y Nessick.
Lows NJ Price and " Harmon Reynolds
iall directors of the Fruit Growers Ma
tional Bank,
The complainants allcgc that on or
about the twentieth dsv of January. 1916,
Joseph SmitherS the owner of the gaS
plant in Smyrna. granted unto CIV Heyd
an option for the purchase OF sad plant
for the sum u. $4,000 and .urthcr pay
mcnt Of 500 for coal and coke at the
plant
en- the twentv-sixth day of .Iapuary.
1916, six DAYS later. Heyd assigned this
option TO Edward l.. Jones and upon he
following duy. January -, 1916 Jones
assigned the option To the Kent County
Light Heat and Power Corporation
II is further alleged that on the twenty
sixth day OF January. 1916. Ileyd and
various other persons secured lncorpora-
ton under the laws of Delaware for the
Kent County Light. Heat and Power
Corporation On the twCntv-scyenth dsy
Of January 1916, it is alleged, Joseph
SmithcrS and wife executed and acknowl-
edged . deed purportlng 10 convey unto
the Kent County Light, Heat and Power
Corporation the gas plant. but the deed
WAS not delivered To the Kent County
Heat. Light and Power Corporation. but
was delivered Ia the Fruit Growers
National Bank of Smvrna under and sub
lcct to the terms Of an agreement executed
bv the said bank and Smithers Under
this agreement, II Is allegA. certain pay
ments were to be made for the benefit of
the said Smithers, and III default OF SAID
payments, rs specified IN the contract, the
Fruit Growers National Bank was to re-
deliver the deed from Smithers 10 the
+ Kent County Light, Heat and Power
I Corporation to Smlthers.
| II is alleged in the bill of complaint
1 that on the twenty-seventh day of janu-
arv. 1916. the Kent County Light Heat
and Power Corporation executed mort
gage to the Peoples Guarantee apd Trust
| Company as trustee to secure the issuance
of Sl000 600 per cent bonds, this mortgage
purporting to cover the same property
/ convened by deed from Smithers 10 the
/ Kent County Light, Heat and Power Cor
! poration Under the said mortgage,
1000 in bonds, it is alleged, were issued
/ and delivered TO the Fruit Growers
! National Bank and sold by them
/ OF these bonds Schultzhach bought
$4,000 worth, Rud 81 500 worth and
+ Doughty 81 600 worth.
The bill further alleged that on July /,
/ 1916, the Fruit Growers National Bank
rcdcliyercd to Joseph Smlthcra the deed
made on January -, 1916. and that the
/ Kent County Heat, Light and Power or
poration never owned or had any legal
interest in the property set forth IN the
deed and described in the mort gage and
never had had any real or personal prop
/ erty
The bill prays Tor a decree that the
mortgage hc declared void that com
plainants receive full payment and. resti-
tuition for the amount reported received
bv the sale Of said bonds and that the
officers and directors OF the Fruit Growers
National Bank be held personally and
/ individually responsible for the trans
/ action
Subpunas were issued, returnable
March II
Graham c. Woodward, Philadelphia,
/ and William ; Iiiles of this city represent
| the eomplainantS