The New York herald., 1921-12-16
ROCKINGHAM FRAUD
CHARGES TO Be TRIED.
FIRST in WRANGLE
Litigation Over Stock BrOk-
er's Property Narrowed
to Single Issue.
10000 PERSONS INVOLVED
Many Prominent Men Bought
Securities in FL Salvador
Silver Mines.
10000 PERSONS INVOLVED

Legal obstacles in the way of testing
the fraud charge made by holders OF
FL Salvador Silver Mines Company,
Inc, stock against Thomas H. Froth-
ingham, until recently member of the
Stock Exchange and prominent So
cially, were all removed yesterday by
Judge Augustus NJ Hand in the United
States District Court
Representatives of the rockingham
estate, now in the hands of trustees,
agreed to stipulate that il the fraud
charge as alleged in the Salvador case,
is established before e. Henry La
combe, special commissioner, then Mr..
rockingham will admit his insolvency.
Upon such an agreement Judge Hand
denied the motion made by the Sal
vador petitioners to examine Frothing-
ham and the trustees in charge of his
property.
The whole proceeding, therefore. is
reduced to the issue Of fraud. II the
Salvador investors substantiate their
claim II Is assumed that the Frothing-
ham property win be taken out Of the
hands of the trustees and turned over
to receiver, with the Salvador stock
holders sharing equally with all other
creditors. If the fraud claim fails the
trustees will continue settling the estate
and the claimants who have started this
action will be left without further re-
course and with their mining stock ;n
their possession as their only comfort.
D.c,..suu,< n.-sc,.. sturLv,.u.v.~x
The hearing was set for next Wednes-
day before Mr.. Lacombe. 1t is expected
considerable time will be required TO
examine all the witnesses, who will tell
how they came to purchase the Salvador
stock and what representations were
made to them to persuade them to invest
in the Central American silver mines.
Representatives OF Mr. rockingham
declared they were quite willing to sign
tho stipulation admitting his insolvency
in the event of the fraud charge being
sustained. They contended that this
willingness was evidence of their abso-
lutte conviction that no fraud had been
practised and that the allegation would
fall fiat when heard in court. More than
dozen lawyers are now representing
various parties in the action.
One of the first facts to be established
before Mr.. Lacombe is the amount real
lied from the sale of stock. The SAL
vador capital stock Is put down at
s3,000.o00. but it Is said that much of
the stock was sold at prices ranging
from Sc to IS share.
Many prominent names appear in tho
list of stockholders. One 10 william
Rockefeller of 26 Broadway, who is down
on the books for $4,000 shares. Among
the large owners, according to the list,
are Thomas A. Howell and members OF
his family and business associates. The
Howell residence Is 375 Park avenue and
Mr.. Howell's business is 129 Front street
There are 10000 shares in the names of
Thomas A., Frederick H. and Amelia
Howell James III. Post OF 129 Front
street is down for 121 900 shares, and
Corrine II. Wiley of 129 Front street for
10000 shares.
1900 Investors I'm Mines.
Mr.. Howell said yesterday he had been
X personal friend of Mr.. rockingham
and did not care to discuss the Salvador
enterprise. lie said that as matter of
fact there was little to say excepting
that he and his friends '1lad been
stuck" the same as all the other in
vestors.
ord as shown in the list presented by the
petitioners in the legal action are Charles
Toy of 2e Broadway, $4,000 shares G
W. Shepherd, 100 Broadway, 1000
shares Wade Templeton & Co., ~
Broadway, $4,000 shares Henry W. Will
m~1t. 5000 shares Edward Meiner and
family Of Bronxville. $1,000 shares; Will
bur C. Dixon. 5000 shares; Adrian p.
Briggs. Nassau street, $4,000 shares A.
J. McAllister, 1890 shares, and Frank
d. Lackey Of wilmington, Del. $4,000.
Mr.. Lackey is one of the three petit
toners in the action. and II is stated that
he paid $3.50 a share and that misrepre-
sentations were made to him. The an
swer made to the latter is that Lackey
had all the information available TO Mr.
rockingham. There are some 1900
stockholders. Some Of the firms appear
ing in the list are supposed to have dis