Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1919-05-19
R. & H. IN SUITS.
AGAINST ALIEN
PROPERTY HEAD
10 Equity Suits to Prevent Gus
todian Gown From Gaining
Control

The AmericaY stockholders of the
Roessler & HassIacher Chemical
Company and allied concerns, includ-
ing the Perth Amboy Chemical Com
pany and the Niagara Electric Chemi-
cal Company have filed ten equity
suits in the United States District
Courts of New York, Buffalo and
Newark against Francis p. Garvin,
custodian of allen property and the
Columbia Trust Company, of New
York, in an effort to prevent the Gus
todian from gaining control of the
companies.
The stockholders seek to enjoin
Mr.. Garvin from exercising control
over eighty shares of the stock of the
Perth Amboy Chemical Company, 240
shares of the Niagara Electro Com
pany of Niagara Falls, and $500
shares of the Roessler & Hasslacher
company for which the custodian
made a demand on April /, claiming
their sale to American stockholders
in February, 1917, was not bonafide,
but that the stock was still being held
for the Deutsche Gold e. Silver
Scheide Anstalt of Frankfort, Ger
many.
The Roessler & Hasslacher Chemi-
cal Company has capitalization of
$1,300,000 par value. Prior to Febru
ary, 1917, it is admitted by the rela-
tors in the present suits, the majority
of the stock was held by the Frank
fort concern. The complaint sets up
that on February 6, 1917, Franz
Roessler, of this city, an American
citizen and vice president of the con-
Germ, purchased from the Scheide
Anstalt $500 shares of stock at 5000
a share, and that payment was made
In cash about February II through
New York bankers These shares
fCtr ri 20
Jacob Hasslacher, another officer of
the concern: 500 to William A. Ha-
mann, 2,1S5 to Roessler and 565 to
the others, who now appear as COM
plainants.
The transfer of these $500 shares
placed the controlling interest of the
company. according to the complaint,
in the hands of American citizens
who had demonstrated their loyalty
to the United States. After war had
been declared declaration was made
of the amount of stock in the three
companies which was still held by
German interests, and this was turn
ed over to the alien property custo-
dian several months ago.
At the same time the $500 shares
of Roessler and Hasslacher stock
were transferred, it is claimed, the
Roessler company also purchased
from the Scheide Anstalt eighty
shares Of stock in the Perth Amboy
company, and 240 shares of the
Niagara Electro Chemical Company.
thus giving the American interests
control of these two concerns.
Claims Transfer Not Bonafide.
The alien property custodian de-
clined to accept the view that the
stock sales of February, 1917, had
been genuine, and on April 1 last
made a demand on the holders of the
stock for its delivery to the Columbia
Trust Company on the ground that 1t
was still being held on behalf of the
former German owners of Frankfurt.
Roessler and his fellow stockholders
say in their equity complaints that
the stock was purchased in good
faith, paid for in cash and that con-
sequently the alien property custo-
dian has no claim on it.
The suits are brought by Clifford
Hobbs & Beard of No. 60 Broadway,
representing the Roessler e. Hass-
lacher Company, Jacob Hasslacher,
William A. Hamann, Franz Roessler,
Louis Ruhl, Hall-Mausolff Company,
George w. Kuchler, Philip schieuss.
ner. Albert Frankel and Hector R.
Carveth, vice president of the r. e. H.
company and general manager of
their local interests.
1t is alleged that if the alien prop
erty custodian is permitted to sell
the disputed stock. the control will
pass from the hands of American
citizens who have been largely re-
sponsible for the building up of the
companies. and an injunction is ask
ed forbidding the custodian from ex-
ercising any control over the stock in
question. The filing of the suit acts
as preliminary injunction prevent
ing Mr.. Garvan from disposing of the
stock pending the disposition of the
case.